Charterparty

A charter party is a document of contract by which a shipowner agrees to lease, and the charterer agrees to hire a vessel or all the cargo space, or a part of it, on terms and conditions forth in the charter party. If permitted to do so by the terms of the charter party, the charterer may enter into subcontracts with other shippers. LEGAL PROVISIONS RELATED TO CHARTER PARTY: 1.The Indian Carriage Of Goods By Sea Act, 1925 2.The Indian Bills Of Lading Act, 1856 3.The Indian Contract Act, 1872 4.The Sale Of Goods Act, 1930 TYPES OF CHARTER 1.Voyage Charter - the owner of the vessel agrees to carry cargo from one port to another on a particular voyage or voyages. The vessel is manned and navigated by the owner’s crew. 2.Time Charter - a #contract for the use of the carrying capacity of a particular vessel for a specified period of time. The vessel’s carrying capacity is leased to the charterer for the time period fixed by the charter party, allowing for unlimited voyages within the charter period. 3.Demise Charter (Bareboat Charter Party) - the charterer not only leases the carrying capacity of the vessel but, unlike a time or voyage charter, also obtains a degree of control over the management and navigation of the vessel. Credits:Varun Litoriya