Party to charter, a contract by which the owner of a ship leases it to others for use in the carriage of cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity will be controlled by the charterer. 1.2 The advance is paid in the form of a deposit for the guarantee of the ship for the charter period and must be paid to the owner when signing this contract. Against payment of the advance by the charterer, the owner undertakes not to conclude any other agreements on the chartering of the vessel for the same period. The remaining payment must be made to the owner no later than the date indicated here. The deposit and/or payment of fuel and accidental damage are to be paid to the owner before the start of the charter period. In some cases, a charterer may own cargo and instruct a ship broker to find a ship that delivers the load at a given price, called a freight rate. Freight rates can be expressed on a given line per tonne (e.g. B for iron ore between Brazil and China), in Worldscale points (for oil tankers) or, alternatively, in a total – normally in US dollars – per day for the agreed duration of the charter.
A charterer can also be a cargo-free party that charters a ship by the owner for a certain period of time and then exchanges the vessel with a profit higher than the rental price, or even makes a profit in a rising market by re-leasing the vessel to other charterers. To the knowledge of the parties to the partnership, the parties to the charter contracts hold the State licences for which the parties to the charter are responsible in accordance with the terms of the charter contracts or reasonably expect them to operate under the charter contracts, if necessary, under the charter contracts. 5.5 The charterer may not sub-charter or participate in the control of the ship without the prior written consent of the owner. 6.1.1 If the charterer notifies the owner in writing of his resignation from the charter at least two full calendar months before the start of the charter period, the deposit expires, but the charterer is not responsible for the amount of the balance of payments (and if these and/or the deposit or payment for fuel and accidental damage have already been paid, he and/or they are reimbursed). If the owner charters the vessel for the charter period for no less than the charter costs, half of the advance shall be reimbursed. In such circumstances, the owner will do everything in his power to re-charter the ship and may not refuse to give his undue consent to the relocation, although charters that can reasonably be considered harmful to the ship, its reputation or its schedule may be refused. The founding party is the document that is subject to judicial review and interpretation in the event of a dispute, but in practice most disputes are subject to arbitration. The most important clauses in each party to the charter are those that set the number of days allowed for loading or unloading and those that determine who should bear the associated costs. See also Konnossement, invoice of. Chartering is an activity within the maritime sector where a shipowner leases the use of his vessel to a charterer. The contract between the parties is called „charter party“ (extract from the French „charte partie“ or „document parted“). The three main types of charter are: Shipwreck Charter, Voyage Charter and Time Rental….