| -> | | | | called a Charter-party (A charter-party is a contract |
| International trade in some specialised and bulk | | | | by which all or part of a ship is let for a specified |
| commodities is often conducted using chartered (hired) | | | | voyage or a specified time). The Charter-party will set |
| vessels which allows for greater flexibility and control | | | | out the responsibilities of charterer and vessel owner |
| of the trade chain to both seller and buyer. | | | | and will often take the form of a standard document |
| Most vessels will be chartered by one of three | | | | established for a specific trade by a Trade |
| principle methods: | | | | Association. Examples of these are: |
| - "Voyage" - hire of the vessel for a particular voyage. | | | | HeavyCon - a voyage contract for heavy lift cargo. |
| - "Time" - hire of a vessel for a specified period | | | | GenTime - a time contract for general cargo. |
| - "Bareboat" or "Demise" hire - taking over and running | | | | Typical risks faced by a charterer will include: |
| the vessel as if owned. | | | | Damage to the vessel caused by cargo handling |
| This bulletin introduces some of the insurance issues | | | | (stevedores), unsafe berths/ports and bad bunkers |
| relating to Voyage and Time Charters Liability and also | | | | (fuel). |
| highlights the principal difference to Bareboat Charters. | | | | Loss or damage to third party cargo or property |
| Voyage and Time Charters | | | | Oil pollution |
| Chartering a vessel for a voyage, series of voyages | | | | Third party bodily injury |
| or a specified period of time is a common practice in | | | | The charter-party document and any additional |
| some of the specialised (e.g. Project Cargo) and bulk | | | | clauses (riders) or amendments are critical |
| cargo trades (e.g. Grain, Fertiliser and Minerals). Vessel | | | | components in the risk assessment process for all |
| chartering allows flexibility in the type and size of | | | | Charterers Liability Risks. |
| vessel to be used, timing and availability, and the | | | | Bareboat Charters |
| variety of ports which may be accessed. | | | | This type of charter can differ from Voyage/Time |
| The exposure of a charterer will usually be that of | | | | charters because the charterer usually takes over the |
| liability under the contractual relationship with the | | | | complete control of the vessel as opposed to hiring |
| shipowner. This contractual liability is established by the | | | | the vessel with the owners crew. |
| mutual agreement of the parties under a document | | | | |