What is the charter party (Time Charter Party)?

Time Charter Party is a contract whereby the lessor delivers a fully furnished and manned ship to the lessee for a limited period of time.

Time charter party (Time Charter Party)

The term charter party in English is Time Charter Party.

A term charter is a contract whereby the lessor delivers a fully furnished and manned ship to the lessee for a specified period of time.

Hợp đồng thuê tàu định hạn

Nature:

A time charter is a document that governs the relationship between the charterer and the charterer.
A time charter party is a property lease agreement signed between the shipowner and charterer, which specifies the following: shipowner name, charterer, ship name, tonnage, capacity volume, registration capacity, seaworthiness of the ship, time and place of delivery, return, charter time, chartered sea area, charter, distribution of a number of operating expenses of ships like fuel, freshwater ...

Main contents of a time charter:

Ship Clause: the two parties must agree on and specify the chartering and chartering of the ship, such as the name of the ship, the ship's economic and technical characteristics, the time and place of delivery and receipt. the ship, checking the technical condition of the ship when delivering and receiving the ship ... Based on these provisions, the charterer can calculate how the operation of the ship during the charter period is most beneficial.

Hợp đồng thuê tàu định hạn

Hire terms: Hire time is usually based on DWT / 30 days a month; GRT / 30 days a month or including ships/day...
Time charter fee can be paid monthly. The shipowner has the right to cancel the contract and withdraw the ship without a charter, if the charterer fails to pay the freight in full and on schedule.
During a period of time when a ship has to rise for regular repairs or the machinery is broken due to the fault of the shipowner ... the ship that does not carry a business of transport is called the Off Hire.
During the rental period, the charterer is entitled to deduct the charter fee.
Terms of sharing of operating expenses: this is one of the important provisions of the charter party.

Hợp đồng thuê tàu định hạn

Owners often have to bear the following expenses (For Account of Shipowner):

Salaries and allowances for sailors working onboard (except in the case of Bare Boat Charter).
Providing food and foodstuffs (Provisions).
Maintenance, regular maintenance, and repairs (Maintenance and Repairs).
Supplying spare parts, supplies, and equipment for ships (Stories, Suppliers, and Equipment).
Depreciation of the ship.
Ship insurance during the charter period (Insurance of Ship).
Office expenses (Overhead Charges).
Survey charges (Survey Charges).
Brokerage costs, if any ...

Renters often incur the following expenses (For Account of Charterer):

Engine oil (FO, DO).
Port Charges.
Cost of handling (Steverdoing Charges).
Cleaning tunnel costs (Cleaning Holds).
Cost of dunnage (Dunnage).

Other provisions: in addition, the charter party also has other provisions such as the sublease clause, the operator's terms of operation, the terms of canceling the contract, the terms of appeal Complaints and referees.

Source of the article: vietnambiz.vn/hop-dong-thue-tau-dinh-han-time-charter-party-la-gi-20191028174752638.html