charter party

charter (def. 5).
[1530-40]

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      contract by which the owner of a ship lets it to others for use in transporting a cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity is engaged by the charterer.

      There are four principal methods of chartering a tramp ship—voyage charter, time charter, bareboat charter, and “lump-sum” contract. The voyage charter is the most common. Under this method a ship is chartered for a one-way voyage between specific ports with a specified cargo at a negotiated rate of freight. On time charter, the charterer hires the ship for a stated period of time, for a specified round-trip voyage, or, occasionally, for a stated one-way voyage, the rate of hire being expressed in terms of so much per ton deadweight per month. Whereas on a voyage charter the owner bears all the expenses of the voyage (subject to agreement about costs of loading and discharging), on time charter the charterer bears the cost of bunkers and stores consumed.

      On bareboat charter, which is less frequently used in ordinary commercial practice, the owner of the ship delivers it up to the charterer for the agreed period without crew, stores, insurance, or any other provision. Contracts can also be arranged on a lump-sum basis, when an owner agrees to ship a given quantity of a stated cargo from one port to another for a stated sum of money.

      The charter party is the document that is subject to scrutiny and interpretation by a court of law in the event of dispute, but, in practice, most disputes are submitted to arbitration. Among the most important clauses in any charter party are those that lay down the number of days allowed for loading or unloading and those that determine who is to bear the expenses involved. See also lading, bill of.

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Universalium. 2010.

Look at other dictionaries:

  • Charter party — Charter Char ter, n. [OF. chartre, F. chartre, charte, fr. L. chartula a little paper, dim. of charta. See {Chart}, {Card}.] 1. A written evidence in due form of things done or granted, contracts made, etc., between man and man; a deed, or… …   The Collaborative International Dictionary of English

  • Charter party — Party Par ty, a. [F. parti divided, fr. partir to divide. See {Part}, v., and cf. {Partite}.] 1. (Her.) Parted or divided, as in the direction or form of one of the ordinaries; as, an escutcheon party per pale. [1913 Webster] 2. Partial; favoring …   The Collaborative International Dictionary of English

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  • charter party — noun Etymology: by folk etymology from Medieval Latin charta partita, literally, divided charter, one part being given to each of the contractors : charter 5 * * * charter (def. 5). [1530 40] * * * charter party, = charter (def. 5). (Cf.… …   Useful english dictionary

  • charter-party — A contract by which a ship, or some principal part thereof, is let to a merchant for the conveyance of goods on a determined voyage to one or more places. The term charter party or charter agreement , often shortened to charter, designates the… …   Black's law dictionary

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