Terms & Glossaries of Shipping and Trading
Port charterparties are the most commonly used form of charterparty. Under a port charterparty, a vessel becomes an arrived vessel for the purpose of calculating laytime once she arrives within the confines of the port.
Charter Party means the contract between the owner of the vessel (shipowner) and the party hiring the vessel (charterer). The two parties come to an agreement for use of the vessel in transporting goods.
There are three main types of charterparty: time, voyage and demise.
In a demise charter, the charterer takes responsibility for the crewing and maintenance of the ship during the time of the charter. He assumes the legal responsibilities of the owner, and is known as a disponent owner.
In a time charter, the vessel is hired for a specific amount of time. The shipowner manages the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter the vessel on a time charter or voyage charter basis.
In a voyage charter, the charterer hires the vessel for a single voyage, but the shipowner provides the master, crew, bunkering and supplies.
Port Charterparty, also Port C/P, is the most commonly used form of charter parties. We have mentioned the voyage charter above, and the voyage C/P can be qualified as a Port C/P or as a Berth C/P. This will depend on the agreed specified destination.
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