charterers

Charterers are the parties, other than the shipowner, that hire a vessel under a charterparty agreement. In practice, a charterer can be a trading company, a shipper, a freight forwarder, or a broker acting on behalf of cargo interests. The charterer’s role is to provide the cargo and to determine how the vessel is used within the terms of the contract, while the shipowner remains responsible for the vessel’s physical condition, crewing, and general compliance.

There are several common types of charter agreements. In a voyage charter, the charterer hires the vessel for a specific voyage or series of voyages, pays freight, and directs the cargo, ports of loading and discharge, and the voyage route. The shipowner provides the vessel, crew, and ordinary operating expenses, while the charterer bears voyage costs such as port charges and fuel to the extent defined in the charterparty. In a time charter, the charterer hires the vessel for a specified period, directing where the vessel should go and what cargoes to carry, while the shipowner remains responsible for crewing, maintenance, and insurance, and the charterer pays hire plus certain voyage costs. A bareboat or demise charter transfers substantially more control to the charterer, who leases the vessel without crew or stores and operates it as if it were the charterer’s own ship.

Charterparties are legally binding contracts that allocate risk and financial obligations between the owner and charterer, covering laytime, demurrage, despatch, freight, hire, liability, and insurance. The precise rights and duties of a charterer depend on the chartertype and the terms negotiated in the charterparty.