| yage or time charter the charterer charters the ship | | | | ship and the type of charter, normally a standard |
| (or part of it) for a particular voyage or for a set | | | | contract form called a charter party is used to record |
| period of time. A voyage charter is the hiring of a | | | | the exact rate, duration and terms agreed between |
| vessel and crew for a voyage between a load port | | | | the ship-owner and the charterer. |
| and a discharge port. The charterer pays the vessel | | | | There has been increasing demand for voyage |
| owner on a per-ton or lump-sum basis. The owner | | | | vacations. While both the international leisure travel |
| pays the port costs, fuel costs and crew costs. In | | | | industry (particularly outdoor activities based |
| these charters the charterer can direct where the | | | | vacations) and the boating industry has both boomed |
| ship will go but the owner of the ship retains | | | | in the last decade, so too has the voyage charter |
| possession of the ship through its employment of | | | | industry which incorporates both of these pursuits. |
| the master and crew. Whereas in a bare-boat or | | | | In a voyage charter, the charterer hires the vessel |
| demise charter, the owner gives possession of the | | | | for a single voyage, and the vessel's owner provides |
| ship to the charterer and the charterer hires its own | | | | the master, crew, bunkers and supplies. The voyage |
| master and crew. | | | | charter is a contract for the carriage of a stated |
| Chartering is an activity within the shipping industry. In | | | | quantity and type of cargo, by a named vessel |
| some cases a charterer may own cargo and employ | | | | between named ports against an agreed price, called |
| a shipbroker to find a ship to deliver the cargo for a | | | | freight. It is the most wide spread form of chartering. |
| certain price, called freight rate. Freight rates may be | | | | Several possibilities can occur, an entire ship maybe |
| on a per-ton basis over a certain route or | | | | chartered for the transport of a full cargo, for a well |
| alternatively may be expressed in terms of a total | | | | determined voyage, or for a voyage to go and |
| sum - normally in U.S. dollars - per day for the agreed | | | | return, or for a series of specific voyages, or for a |
| duration of the charter. There are hundreds of | | | | round trip with different harbors and the right for the |
| voyage charter brokers or agent companies. These | | | | charterer to load and discharge. Sometimes a part of |
| companies offer yacht finding and travel organisation | | | | the ship is chartered for the transport of a certain |
| services similar to travel agent only more specialized. | | | | shipment or part cargo. |
| Their purpose is to use their experience and | | | | If the ship is chartered entirely, this agreement will |
| networks to locate a client's ideal vessel in terms of | | | | usually be noted by a charter party, although, under |
| price and location. | | | | certain legislations, this agreement may also be |
| A charterer may also be a party without a cargo | | | | materialized by other means, even by testimony. |
| who takes a vessel on charter for a specified period | | | | Usually, under a voyage charter both the fixed costs |
| from the owner and then trades the ship to carry | | | | and the variable costs are at the expense of the ship |
| cargoes at a profit above the hire rate, or even | | | | owner. In the contract of affreightment it is clearly |
| makes a profit in a rising market by re-letting the ship | | | | stipulated who must pay the cargo handling costs. |
| out to other charterers. Depending on the type of | | | | |