What is Charter Party? What are the Classifications of Charter Party?

Charter party

When an agreement is written formally along with all of its terms and conditions is called a charter-party. The person who hires the ship is called a charterer.

Types of charter-party:

Mainly there are three types of charter party such as

ü  Time charter,

ü  Voyage charter,

ü  And demise or bareboat charter.

Each of their explanations is given below:

·       Time charter:

When there is a charter party for a particular time period is called a time charter. So in such a contract  a specified time period very much important.

·       Voyage charter:

When there is a charter party for a particular voyage is called a voyage charter. Here, the particular voyage is taken under the charter party.

·       Demise or bareboat charter:

This one is kind of messy but easy to understand that is when the ship owner gives the whole ship as lease to the charterer, charter becomes the short term owner of the ship, and the captain and other members become his servant. On the other hand, if the whole ship is not given as lease but the place for the carriage of charterer’s goods, in that case charterer becomes nothing but the charterer for the carriage of goods on any corner along the ship.