There are four main methods to charter a tramp boat – travel charter, time rental, cash boat rental and “package contract”. Travel chartering is the most common. Under this method, a ship is chartered at a negotiated freight rate for a one-way trip between certain ports with a given cargo. In the case of a temporal charter, the charterer shall lease the vessel for a specified period, for a given round trip or, occasionally, for a specified disposable voyage, the rental rate being expressed in quantity per tonne of load capacity per month. Whereas, in the case of a charter trip, the owners bear all the costs of the trip (subject to the agreement on loading and unloading costs), the charterer bears the costs of bunkers and shops consumed during the time charter. 1.1 The owner leases Bareboat-Charter and the charterer rents the vessel for the charter period for charter costs. The founding party is the document that is subject to judicial review and interpretation in the event of a dispute, but in practice most disputes are subject to arbitration. The most important clauses in each party to the charter are those that set the number of days allowed for loading or unloading and those that determine who should bear the associated costs. See also Konnossement, invoice of. 5.10 The charterer shall limit the number of persons in his party to a number of berths on the ship, except by prior appointment with the owner, this agreement being conditional on the party to the charterer does not exceed the number of berths authorized by the competent authority on the ship. In some cases, a charterer may own cargo and instruct a ship broker to find a ship that delivers the load at a given price, called a freight rate.
Freight rates can be expressed on a given line per tonne (e.g. B for iron ore between Brazil and China), in Worldscale points (for oil tankers) or, alternatively, in a total – normally in US dollars – per day for the agreed duration of the charter. Party to charter, a contract by which the owner of a ship leases it to others for use in the carriage of cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity will be controlled by the charterer. In the case of a bareboat rental, less used in usual commercial practice, the shipowner shall deliver it to the charterer for the agreed period, without crew, warehouse, insurance or other disposition. Contracts may also be subject to a lump sum agreement if an owner agrees to ship from one port to another a certain quantity of a declared cargo for a declared sum of money. The Fleet Bareboat charter contract outlines the responsibilities of CMAL and the operator as well as the process required for legal, proprietary and charterer upgrades. 6.2.3 In the event that the owner is able to charter the vessel for all or part of the charter period, the owner will credit the net amount of the charter rent resulting from the new charter up to the value of the balance.
The owner shall make every reasonable efforts to charter the ship and shall not refuse to give consent to repositioning, although charters, which may reasonably be considered harmful to the ship, its reputation or its timing, may be refused. . . .