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Types of Charter
The charter can be the owner of the cargo for transporting it to a specific place. For this, he might hire a shipbroker for finding a ship that can be to deliver the cargo on freight rate (this can be per day or decided for the particular duration). On the other hand, a shipowner is someone who owns the merchant’s vessel, this type of ownership usually takes charges by hiring a captain and the licensed crew for direct charges. There are different types of charters available and for a better understanding. Usually, a shop owner is someone engaged in the transportation of goods.
The types of charters involve the following points:
- The hiring of a vessel is done in a way that no administration or any kind of technical maintenance is included in the agreement, this is known as a bareboat charter.
- Operating expenses including port expenses, fuel, crew, etc. are paid by the owner. The charter period usually ends with the charter taking the ownership in the hull.
- A time charter is a type of charter in which vessel is hired for a specific period of time, although the owner manages the vessel still ports and directions are decided by the charterer. The crew cost and ports costs are paid by the owner only.
- The charterer takes the full control and the legal and financial responsibility of the vessel when the demise charter leaves the possession and control. This means all the expenses and responsibilities from the shipowner passes to the charterer.
- Vessel and crew for the voyage are hired between the load and the discharge port in a voyage charter. The owner pays the port, fuel cost, and the crew cost. While the charter pays the vessel owner in lump-sum basis or on a per ton basis.
