馃攳
The Charter Party Contract, Type of Charter Party, Dispatch Explained ! The Charter party Agreement - YouTube
Channel: Daily Logistics
[0]
Welcome to daily logistics.
[2]
In this video, we are going to talk about
the charter party Contract.
[6]
without further due let's get started.
[9]
What is Chartering?
[11]
In general, you know how cargo moves
[13]
via sea with the support of the carrier.
[16]
If the shipper has cargo to fill the entire
vessel
[18]
it鈥檚 not ideal for the shipper to hand over
[20]
goods to the intermediary parties for shipping.
[23]
Further, a party may wish to become an NVOCC
[27]
yet be unable to buy a vessel.
[29]
Or even a carrier can be there wish to hire
a vessel
[32]
instead of buying.
[34]
In such situations, the best option for a
shipper
[36]
is to hire an entire vessel to carry cargo
from a shipowner.
[40]
So, the party that requires a vessel hires
a vessel
[44]
from a vessel owner.
[45]
This process calls the vessel chartering the
[48]
Charter Party Contract or Charter party agreement.
[50]
What is the Charter Party?
[53]
For vessel chartering, there should be an
agreement
[55]
between the parties to charter the vessel.
[57]
This calls as the charter party or the
[59]
charter party agreement.
[61]
This is a maritime contract on vessel leasing.
[64]
What are the Types of Charter Party?
[67]
There are three types available
[69]
Bare Boat Charter Party| Demise Charter Party
[70]
Time Charter Party
[71]
Voyage Charter Party
[72]
The Charter Party in Detail
[73]
Voyage Charter Party
[74]
In the voyage charter party,
[76]
as the name reflects vessel charter
[77]
for a specific voyage.
[79]
Here carrier agrees to carry, a specified
quantity of cargo.
[84]
The parties can agree on the loading and discharging
[86]
ports too.
[87]
During this agreement, the vessel owner
[89]
should provide the vessel crew, t
[91]
ake care of the operational matters,
[92]
and navigational matters.
[94]
The charterer only pays the agreed
[96]
freight rate for the voyage.
[98]
Here parties agree on a time duration
[100]
for cargo loading and discharging
[101]
which can define as the Lay Time.
[104]
If the charterer enjoys more time for
[106]
loading and discharging than agreed,
[108]
the ship owner can charge on that
[109]
which is the demurrage charge.
[111]
Under the contract,
[112]
the charterer has minimum control over the
vessel.
[116]
Time Charter Party
[118]
The hiring of a vessel for an agreed time
[121]
period is the time charter party.
[123]
For each hire, the charterer has to arrange
the payments to the shipowner.
[127]
This payment is for the time period from
[129]
the date of vessel delivery to the
[130]
date of vessel redelivery.
[132]
Here, the charterer bears all the time
[134]
losses as the vessel is under the charterer鈥檚
disposal.
[138]
There can be time periods where vessel
[139]
operation has to suspend for repairs.
[143]
As such, the charterer does not have to pay
the shipowner.
[146]
Such time calls as off-hire time.
[149]
The charterer should arrange the hire in
[150]
agreed time intervals during the time charter.
[153]
Yet, the ship crew hires by the shipowner.
[157]
Bare Boat or Demise Charter Party
[159]
Here, ship lease to the charterer who enjoys
[163]
total control of the vessel for an agreed
period.
[167]
There is no involvement of the shipowner
[168]
during the time period.
[170]
The charterer is responsible including but
[172]
not limited to hiring the ship crew, ship
equipment,
[175]
navigational and operational matters too.
[178]
This is the only charter party contract that
[180]
allows the charterer to act as the owner of
the ship.
[183]
During the demise charter, the party charterer
[185]
can even paint the ship as per the charter鈥檚
preference.
[189]
Normally a demise contract is long term contract.
[192]
What is the Difference Between the
[194]
Time and Demise Charter Party?
[197]
Both charter parties are for an agreed time
period.
[200]
But, in the bareboat, the charterer act as
the
[202]
owner of the ship, and the whole control of
the ship
[205]
lies with the charters during the agreed time
period.
[208]
In time charter party it is not the same as
that.
[211]
The charterer has limited rights over
[213]
the vessel and the ship crew also acts as
[215]
the assistants of the ship owner.
[217]
What is the Dispatch?
[220]
Dispatch is the payment from the ship owner
[222]
to the chartered. Normally, dispatch pays
[224]
if the charterer takes time,
[226]
less than the agreed for loading and discharging.
[229]
In general, dispatch is half of the demurrage
charge.
[233]
What are your thoughts about this?
[235]
Comment below.
[237]
That's it for this video.
[239]
if you like our content consider subscribing
to the channel.
[242]
thanks for watching.
[243]
see you in next video
Most Recent Videos:
You can go back to the homepage right here: Homepage