x You are the tenant of ships transporting sea cargo and want to learn about the charter party rental method?
x You do not understand the benefits and relevant regulations in the charter party rental contract?
x You wonder how the fee and how to pay charter party charges? What should the Charter Party contract be signed?
In the framework of this article, Proship.vn we will answer the question of what is Charter Party? How does the Charter Party regulation? What benefits Charter Party brings to the ship owner and the charterer?
Charter Party: Concept and type of ship lease
The following content will clarify what the concept of charter party is and the Charter Party lease contract includes the main types of contracts:
What is Charter Party?
Charter party is a ship lease. Charter Party is the term used in the field of maritime, only one contract signed between Shipowner and charterer (Charterer) stipulates the terms and conditions related to the use of ships to transport goods.
Types of charter party chartering contracts
There are the following type of charter party contract:
- Voyage Charter Party:
The owner of the ship rented a specific trip to transport goods from one port to another.
- Time charter party:
The ship owner chartered a certain period of time, with the charterer had the right to use the ship during that time.
Regulations should know the shipping contract (charter party)
What is Charter Party rules? Proship has summarized from many reliable sources to share the rules of Charter Party as follows:
General regulations on charter party charter contract
According to Clause 2, Article 146 of the 2015 Maritime Code stipulates: "The shipping contract according to the trip is a contract of transporting goods by sea with the condition that the carrier for the tenant transports the whole train or a specific ship to transport goods on a trip" .
According to the shipping contract, the ship owner for the tenant or part of the ship to transport goods from one port to another and enjoy the charges transported as prescribed by the ship lease contract agreed by the two parties.
Regulations on charges and payment of charges in Charter Party
There are 2 ways to calculate the fee:
- How to calculate and pay charter party charges (1):
How much is it (in case of not filled with ship). The number of base rates may be the number of ports or the number of destination ports.
But the application of the number of ports will generate additional costs of weighing/counting goods, so the contract will often write: "The number of base base charges is the number of ports in the port.
- How to calculate and pay charter party charges (2):
If the subscriber is intact Lumpsum: the charge is calculated once for the whole ship, as long as the number is in the shipping load of the ship's permissible.
What is the benefits of renting Charter Party ships to the tenant and the ship owner?
What is the benefit of charter party rental? Charter Party brings many benefits to charterers and ship owners. Specifically:
Benefits of Charter Party with the tenant
Benefits for charterers charterers:
- Charter party is very flexible:
Charter party tenants can decide what to transport, where and when, ... bring high flexibility in adjusting the transport plan.
- Charter Party helps better control:
Charter party tenants have control over ships and crews, thereby adjusting the speed, direction and maintenance of the ship according to demand.
- Charter party reduces management burden:
Charter party tenants are not responsible for finding customers, managing ships and crews, helping to reduce administrative burden and communication.
- Charter party is suitable for special goods:
Charter party tenants can flexibly choose the method of renting a ship to suit the characteristics of the goods, thereby ensuring the goods are transported safely and effectively.
The benefits of charter party with the ship owner
Benefits for Charter Party owner:
- Charter Party has an advantage in the difficult market:
Ship owners can maintain ship business effectively even when the market is difficult or lack of goods.
- Charter Party helps limit all risks:
Ship owners are only responsible for technical issues and ship maintenance, reducing risks related to other factors such as the market.
- Charter Party offers stable income:
The ship owner has a fixed income from renting a ship, not having to worry about finding new customers.
Note in the charter party chartering contract
Note when renting a charter party? In the charter party lease contract, there are some important things to note:
Note about the form of contract
It is necessary to decide whether the Charter Party contract will be the limit of Fixed-Tyrm Contract (with a term) or the Open-sssed Contract ceiling. This should be clearly defined in the contract to avoid misunderstandings, time disputes and commitments.
Note on checking legal status
It should be determined that the partner is a legal entity that is recognized and meets the commitments in the Charter Party contract. Legal information about the company should be checked and verified including the company name, registration address, tax code and financial situation.
Note about the time and ship delivery port
Charter party contract should set the time to deliver ships and ports. Determine the date and time of delivery, the port location. This helps avoid misunderstandings, disputes over delivery time and help the two parties plan effective transportation.
Note about responsibility
The Charter Party contract needs to specify the responsibility of the ship owner and the charterer in different cases. Including the determination of responsibility in case of failure, loss of goods, and violating contract terms.
Note about appropriate insurance
Short transport faces many unpredictable risks, so it is important to choose the appropriate form of insurance. Insurance may include natural disasters, accidents or goods loss in transportation.
Note on charges and payment
In the Charter Party contract, it is necessary to negotiate the charter fee and payment conditions. Determine the amount to be paid, payment term, payment method. Note about the terms of payment late payment, conditions related to prepayment.
What Charter Party has been answered above, accompanied by the provisions related to the charter party limit lease contract that the charterer and the ship owner must know ... Businesses need to transport containers of the North -South and International Sea in the Port - Port, Port - Warehouse - Warehouse, Contact immediately 0909 344 247 to receive the fastest advice and quotation.
