Charter Party

A Charter Party (C/P) is the contract under which a shipowner hires out a vessel to a charterer. The three main types are:

• Voyage Charter: the owner is paid to carry a specific cargo on a specific voyage. The owner bears most operating costs (crew, fuel, port charges).
• Time Charter: the charterer hires the vessel for a defined period, paying a daily hire rate. The owner provides crew and maintenance; the charterer pays for fuel (bunkers) and port charges, and controls commercial operation.
• Bareboat Charter (Demise Charter): the charterer takes the vessel without crew or provisions and operates it as if owner — paying all costs and bearing all risks.

A fourth category, Contract of Affreightment (COA), commits the owner to carry a series of cargoes over a defined period without specifying particular vessels.

Standardised C/P forms include GENCON (voyage), NYPE/BALTIME (time), and BARECON (bareboat). Each defines laytime, demurrage, hire rates, off-hire provisions, war risk clauses, and dispute resolution.