Charterer

A charterer is a person or company that hires a vessel or other transport asset under a charter party. The charterer pays for the use of the asset for a specified period or for a particular voyage and may obtain the right to direct the vessel’s operations within the limits set by the contract. The shipowner remains the legal owner and generally retains responsibility for the vessel’s seaworthiness, hull and machinery, insurance, and crewing, subject to the charter terms.

In a voyage charter, the charterer hires the vessel for one or more voyages and provides the cargo or freight payment. The charterer determines loading and discharge ports and terms of the shipment, while the shipowner manages sailing, crewing, maintenance, and the master’s day-to-day compliance with the voyage instructions, within contractual limits.

In a time charter, the charterer hires the vessel for a specified period and controls the vessel’s commercial use, including routing, cargoes, and ports of loading and discharge. The master operates the ship under the charterer’s instructions, and the owner supplies the vessel and crew.

In a bareboat or demise charter, the charterer takes almost full possession and control of the vessel, including crewing and operation, effectively assuming the role of the vessel’s owner for the charter term. The owner’s responsibilities are limited to supplying the vessel and title.

A charter party is the contract governing these arrangements, outlining hire, duration, laydays, demurrage and despatch, and the allocation of risks and liabilities between owner and charterer.