COA

A Contract of Affreightment (COA) is a long-term contract between a shipowner and a charterer committing the owner to carry a series of cargoes — typically a defined annual or multi-year volume — over a specified period. Unlike a voyage charter (which is for a single voyage) or time charter (which hires a specific vessel for a period), the COA commits to volume without specifying particular vessels.

COAs are common in commodity trades (oil, grain, ores, cement) where buyers and sellers have steady requirements. The owner has flexibility to deploy different vessels for each shipment, optimising fleet utilisation. Hire is typically paid per voyage at agreed rates with volume commitments and demurrage/despatch terms.