Chartering /Shipping is an activity within the shipping industry. In some cases a charterer may own the cargo and employ a ship broker to find a vessel to deliver the cargo for a certain price, price, called freight rate.


Chartering is the act of hiring a vessel or aircraft for a specific purpose or a specific period of time. It is a common practice in the shipping and aviation industries, and it can involve chartering a whole vessel or just a part of it. Chartering allows companies and individuals to use transportation resources for a specific task without having to own and maintain their own vehicles. There are different types of charter arrangements, including voyage charters, time charters, and bare boat charters. In a voyage charter, the charterer hires the vessel for a specific voyage or journey. In a time charter, the charterer hires the vessel for a specific period of time. A bare boat charter is a type of time charter in which the charterer has full control over the vessel and is responsible for its operation and maintenance.


  • What are the types of charter in shipping?
  • Two types of charter

  1. Voyage charter
  2. Time charter


  • Voyage charter

There are many different reasons that influence a charterer's decision whether to charter on a voyage basis or to charter ships on time.

  • Advantage

Voyage charter gives a fixed price per ton of material to the charterer and puts almost all the risks, especially the risk of delay due to bad weather, strike etc. on the shoulders of the shipowner. However, the charterer has to pay for the privilege of being risk-free.


  • Time charter

  • Advantage

  •  Time Charter gives the charterer a lot of flexibility to ship and avoids the problems of late fees.
  • However, the time charter does mean that if bad weather delays the ship or if workers at a chosen port decide to strike, the daily rate of hire still has to be paid.


Here are five potential advantages of a time charter:


  • Flexibility: A time charter allows the charterer to have use of a vessel for a specific period of time, which can be useful if the charterer has a temporary need for shipping capacity.
  • Cost predictability: In a time charter, the charterer pays a fixed rate for the use of the vessel, which can make budgeting and forecasting easier.
  • Reduced capital expenditure: Time charters do not require the charterer to purchase a vessel, which can be a significant capital expenditure.
  • Reduced risk: Time charters transfer many of the risks of vessel ownership to the ship owner, including the risk of changes in market conditions and the risk of vessel failure.
  • Improved operational efficiency: Time charters can allow the charterer to benefit from the expertise and experience of the ship owner in operating the vessel, which can lead to more efficient and cost-effective operations.



  • Choosing voyage or time charter

Thus, if the charterer has a single item to move from one or a limited number of loading locations to one or a limited number of discharging locations, and the rates of loading and discharging are well established, travel charter is the obvious choice.

  • If, however, the charterer has many different objects. So complex to get to/from different places that it would be difficult if not impossible to include them all in one travel charter, so a time charter is a better idea.
  • This is typified by Time Charter on a trip basis, where any business may well be quoted as "Delivery Kobe, Far East West Coast Travel to North America Redistribution Los Angeles Vancouver Range Expected Duration 90 Days"
  • Another regular reason for time chartering is when a liner company seeks to temporarily supplement its own fleet to cope with seasonal growth in business.
  • Time charters are often routinely used by container lines to fulfill their 'feeder' business and for relatively small container ships to meet the needs of the feeder industry.

  • What are the types of charter in shipping

There are several types of charter in shipping:-


  • Time charter: This is a contract in which the ship owner rents out the vessel to a charterer for a specified period of time. The charterer pays a daily or monthly rate for the use of the vessel and is responsible for covering the operating costs of the ship, including fuel, crew, and maintenance.
  • Bareboat charter: This is a type of time charter in which the charterer takes on the responsibility of operating the vessel as if they were the owner. The charterer is responsible for providing the crew and covering all operating costs.
  • Voyage charter: This is a contract in which the ship owner agrees to transport a specific cargo from one port to another for a fee. The charterer is responsible for loading and unloading the cargo and may also be responsible for paying for fuel and other operating expenses.
  • Demise charter: This is a type of voyage charter in which the charterer takes full control of the vessel, including the responsibility for crewing and operating the ship. The charterer is responsible for all expenses related to the operation of the vessel.
  • Slot charter: This is a contract in which the charterer rents a specific number of slots on a vessel for the transportation of their cargo. The charterer is responsible for loading and unloading the cargo and may also be responsible for paying for fuel and other operating expenses.