Charterparty

A charterparty (from the Latin charta partita, a divided document) is the contract between a shipowner and a charterer for the use of a ship or its cargo space. The three main types are:

• Voyage charter — the owner agrees to carry a cargo between named ports for a freight, keeping commercial and operational control. Laytime and demurrage provisions apply.
• Time charter — the charterer hires the vessel for a period, paying hire (usually per day) and directing its employment, while the owner continues to crew and manage the ship. Fuel is for the charterer’s account.
• Bareboat (demise) charter — the charterer takes over the vessel entirely, providing crew, insurance, and maintenance; commonly used in financing structures.

Most fixtures are concluded on standard forms — GENCON for general dry cargo, NYPE for time charters, SHELLVOY and ASBATANKVOY for tankers — amended by rider clauses negotiated between the parties, usually through shipbrokers.

The charterparty governs the owner–charterer relationship; the bill of lading issued under it may create separate obligations toward cargo receivers.