Charter Types

Types of Charter Parties

1. Time Charter Party (T/C)
2. Voyage Charter Party (V/C)
3. Booking Note (B/N)

1. TIME CHARTER PARTY
For the carriage of dry cargoes the BALTIME and the NYPE (New York Produce Exchange) form of Charter Party are commonly used. Generally speaking the Baltime is more in favour of the Shipowner, whereas the NYPE is more advantageous to the Charterer. In the Baltime c/p the Shipowner is highly protected by clauses 9 and 13. These clauses do not exist in the NYPE c/p.

In short the main characteristics of a Time Charter Party are as follows:
• the Shipowner takes care for a seaworthy ship with valid classification and employs the Captain and the Crew, enabling the ship to safely sail between the ports as ordered by the Charterer
• the Charterer takes care for the loading, stowage, lashing/securing and discharge of the cargoes and gives the Captain orders and instructions as to the cargoes to be shipped to and from various ports
• the Charterer orders and pays for the vessel’s bunkers

In the tanker business other types of Time Charter Parties are used in which the main characteristics are similar as above.

2. VOYAGE CHARTER PARTY
The form commonly used for dry cargo is the Gencon Charter Party, but there are many other forms. In the tanker trade the Asbatankvoy Charter Party is the most popular form. The principle in all such forms is that the type of cargoes and the ports between which the cargoes are being carried are known beforehand. On Liner Terms the Shipowner takes care for loading, stowage and discharge, whereas on FIOS terms (Free In Out Stowed) the Charterer takes care for it. In both cases it is not the Charterer who gives instructions to the Captain, but always the Shipowner. Consequently the liabilities for a Voyage Charterer are slightly less than for a Time Charterer.

3. BOOKING NOTE
A Booking Note (B/N) is a contract between the CIF-seller or FOB-buyer (Merchant) and a shipping company (Carrier) for the carriage by sea of certain goods. The form used in most cases is the “CONLINEBOOKING” Liner Booking Note. The special nature of this contract is that the terms and conditions of the Booking Note are superseded by the Bills of Lading conditions at the time of actual shipment of the goods.

We constantly give advice about Charter Parties, Bills of Lading and other contracts of carriage. We draft and recommend specific clauses and make proforma Charter Parties, as and when required. This additional service plays an important role in our active loss prevention programs.