Charter parties: voyage, time and bareboat
1The lesson in plain words
The charter party decides who pays for time and who gives you orders. Your log entries and notices can be worth thousands of dollars.
Three kinds
A charter party is a contract to hire a ship. Under a voyage charter, the owner carries cargo between named ports for freight, the charge for carrying cargo. GENCON 2022 is a standard form published by BIMCO, an international shipping association. Under a time charter, the charterer hires the ship for a period and pays hire, a charge for time, often using NYPE 2015. Under a bareboat charter, the charterer takes the ship without crew and runs her as owner, often using BARECON 2017.
Laytime and demurrage
In a voyage charter, laytime is the time allowed to load or discharge. It usually starts after a valid notice of readiness (NOR): the master's notice that the ship has arrived and is ready in every way. If laytime runs out, the charterer pays demurrage, a daily rate. If cargo work ends early, the owner may pay despatch. The statement of facts records port events and times. Check it against your log; the charter terms determine which time counts.
Off-hire
Under a time charter, hire continues unless an off-hire clause applies. The clause defines qualifying events and how lost time is measured; a breakdown does not automatically stop hire. Fault is not a universal requirement. Record each stoppage's exact start, end and cause. The charterer supplies and pays for bunkers, the ship's fuel, so their quantity and quality on delivery and redelivery matter too.
Safe port
Where the charter includes a safe-port warranty, assess safety for this ship during the expected visit. She must be able to reach, use and leave without danger that good navigation and seamanship cannot avoid, except an abnormal occurrence, an exceptional event outside the port's normal characteristics. Such an event does not by itself establish breach. If an order appears unsafe, notify owner and charterer in writing, explain the risk and seek a safe alternative. Do not proceed into known danger.
Two masters
In a time charter the charterer gives employment orders: where to go and what to load. The owner keeps responsibility for navigation and the ship's safety. You must follow lawful employment orders promptly, but safety comes first under SOLAS and the ISM Code. Under SOLAS V/34-1 nobody may stop you from making a decision you judge necessary for safety. Keep both parties informed and keep copies of everything.
2Key data
- Voyage charter
- Freight per cargo; laytime, demurrage (GENCON 2022)
- Time charter
- Hire per day; off-hire; charterer pays bunkers (NYPE 2015)
- Bareboat charter
- Charterer crews and runs the ship (BARECON 2017)
- Laytime starts
- After a valid notice of readiness, per the charter terms
- Master's authority
- SOLAS V/34-1: safety decisions are the master's
3Key points
- 1
Voyage charter pays freight; time charter pays hire; bareboat hands over the ship.
- 2
Laytime starts after a valid NOR; when it runs out, demurrage is due.
- 3
In a time charter, record every stoppage that may put the ship off-hire.
- 4
The charterer orders employment; the master keeps navigation and safety.
4Frequent mistakes
Wrong: Tender NOR as soon as you see the port, even if holds are not clean.
Right: NOR is valid only when the ship has arrived as the charter requires and is ready in every way.
Wrong: A time charterer can order the ship anywhere, so you must go.
Right: Follow lawful orders within the charter terms. Report unsafe orders; navigation and safety remain your responsibility.
Wrong: The statement of facts is just paperwork for the agent.
Right: It fixes the times used to calculate laytime and demurrage. Check it against the log before signing.
5Practice case & exam keys
On a time charter with a safe-port warranty, you are ordered to a river port. The latest notices say a new shoal has reduced the channel to 9.8 m. Your arrival draught will be 10.2 m, and the port has no tidal window. The charterer insists. What do you do?
Show the answer
Tell the charterer and owner in writing at once that the port is unsafe at this draught, giving the notice and figures. Seek a reduced draught or an alternative port. Do not enter. Under the stated warranty, the charterer must nominate a safe port. SOLAS V/34-1 protects your safety decision. Keep records.
Exam keys
- Voyage (freight), time (hire), bareboat charters; GENCON, NYPE, BARECON.
- Laytime from a valid NOR; demurrage and despatch; statement of facts.
- Off-hire depends on the clause's qualifying events and time-loss test, not necessarily fault.
- Safe port warranty; employment vs navigation; SOLAS V/34-1.
Finish this unit
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