Q8. What is charter party. Explain kinds and terms of charter party.
It is an agreement by which the ship-owner agrees to place the entire ship or some part of it at the disposal of a merchant for the purpose of carriage goods from one port to another. Thus under a charter party, the entire ship is hired.
TERMS OF CHARTER PARTY
A charter party usually contains the following terms:
1. Names, address and the other particulars of the ship owner.
2. The name of the ship.
3. The nationality of the ship.
4. The measurement of the ship as indicated by its registered tonnage.
5. The location of the ship at the date of the charter party.
6. The seaworthiness of the ship for the intended voyage.
7. The ship-owner’s duty to bring the ship to the agreed port of lading.
8. The charter’s liability to pay freight.
9. The character’s right to take others goods on board under bill of Lading.
10. The nature of duties of the master and crew of the ship towards the character.
11. Conditions for cancellation of the contract of charter party and the penalties impose able there of.
12. Lay days are the days allowed for loading and unloading the ship and if charter take more than the number of lay day, he is liable to pay damages known as demurrages.
13. Charters liability causes as soon as the cargo is loaded.
14. The weight and volume of goods to be loaded.
15. Rights of charter to load goods of other consignors under bill of lading.
16. The route of the ship.
17. A statement that cargo shall comprise of law of merchandise.
18. Conditions by which the contract may discharge.
KINDS OF CHARTER PARTY
Following are the kinds of charter party.
(1) VOYAGE CHARTER
If the hiring of the ship’s for a particular voyage. It is known as a voyage charter party. In a voyage chart, the freight is calculated on the basis of the distance coveted and the quantity of goods/cargo carried. The ownership and control of the ship remains with the original owner of the ship and are not transferred to the character.
(2) TIME CHARTER
If the ship is hired, or a specified of time, irrespective of the number of voyage performed, it is called time charter. The freight or remuneration in a time charter is calculated on the basis of the time period for which the ship is fired.
(3) CHARTER BY DEMISE
In a charter by demise, the charter becomes the owner of the ship for the time being and
The master and the crew of the ship becomes his servant. The ship owner is divested of the control over the ship. Its master and crew for the period of the contract. This sole right is to receive he remuneration and take back the ship after the end of the contract period.
Bill of lading, its kinds and functions Next Post:
DIFFERENCE BETWEEN CHARTER PARTY AND BILL OF EXCHANGE