Terms & Glossaries of Shipping and Trading

COA (Affreightment, Contract of/Contract of Affreightment)

An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.

What is COA (Affreightment, Contract of/Contract of Affreightment)?

Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period.

Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.