A time charter. Image credit lawandsea.net

A time charter. Image credit lawandsea.net

ZIMSEC O Level Commerce Notes: Transport: Documents used in shipping: Charter Party

Charter Party.

  • A contract document used to hire a ship for example tramp ships.
  • It can be known as a voyage charter when hiring a ramp for a specific journey.
  • Can be known as a time charter when hiring a tramp for a specific time period.
  • Can be known as a demise when hiring a tramp together with its crew.
  • Shows the names and addresses of the hiring party and the ship owner.
  • Shows the cost of carrying the goods.
  • Contains lay days i.e. the stipulated number of days for loading and offloading the cargo.
  • If for some reason the cargo can be loaded or unloaded within the lay days, the hiring party pays a fine calle “demurrage.”
  • If the goods carried do not fill the whole tramp the hirer pays “dead freight” for the unoccupied space.

To access more topics go to the Commerce Notes page.


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