x your business is having a shipment, orders need to transport sea and want to learn about the form of renting a Time Charter?
X You want to know which ships are Time Charter? Does Time Charter have advantages and disadvantages?
X You need to learn about the content, regulations, terms as well as fees and surcharges related to the parties to bear when renting a Time Charter train?
Proship.vn we will present the information and knowledge related to the limit train rental method so that you will answer your own questions, what is Time Charter? What advantages and disadvantages of Time Charter?
Time Charter: Definition and forms
The content below will help you understand what Time Charter is and how many forms Time Charter have:
Definition Time Charter
Renting a ships in English is Time Charter. Renting a ships or chartering ships by time is the ship owner to rent the entire ship, may include a boat (captain and a collective of sailors) or not, to carry out cargo business for a certain period of time and the tenant must pay the ship rental and the operating costs of the ship. This is one of the common activities in the process of transporting sea containers today.
Forms of rental ships
Forms of common limited trains:
Rent the entire ship:
- Rent trip time charter: rent a ship for a specific shipping, suitable for short -term orders.
- Renting by time (Period Time Charter): Renting for a certain period of time, maybe from a few months to several years.
Rent a vessel (BareBrat Charter):
- The tenant only rented ships, not renting crew members;
- The tenant must manage the operation of the ship, hire a crew members and bear all operating costs.
The nature and content of the Time Charter charter contract
Together Proship continues to find out what is the following nature and basic content of the Time Charter limit lease contract:
The nature of the Time Charter charter
The contract for renting ships acts as a property lease contract, of which:
- Information about the ship:
Including the name of the ship, the ship owner, the charterer, the load, the registered capacity, the ability to go to the beach and other important specifications.
- The relationship between ship owners and charterers:
Ship owners provide shipping services and ships, while the tenant pays the charter fee and complies with the terms of the contract.
- Time to lease and delivery:
Determine the specific lease time, ship delivery location, conditions for checking the status of the ship when receiving and returning the ship.
- Scope of operation:
Determine the waters or ship area allowed to operate during the lease.
- Cost and rent:
Clearly stipulate the amount of charter money, expenses incurred such as fuel, soft drinks, port fees and payment methods.
Content of the Time Charter
What is the content of the TIME Charter term lease contract? Content of the following important provisions:
- Terms of ship
The two sides need to agree on accurate information about renting and leasing ships. Including the name of the ship, the technical characteristics, time and location of the ship delivery, checking the technical status when delivering the ship.
- Terms of charter
Agreeing on the calculation of the rental fee (DWT/30 -day, GRT/a month 30 days or the whole ship/day) and the payment time (monthly periodic). The right to cancel the contract if the payment is improper.
- Terms of shipping cost division
Stipulate how to divide the cost of ship operators between ships and charterers.
- Terms of deduction of train charges
Regulating the rights of charterers to deduct charges during the time the ship stopped operating.
- The term of hire hire stop time
Conditions when the ship is not carried out due to periodic repair or failure due to the ship owner's fault.
Should see: Good refrigerated container service
Evaluate the advantages and disadvantages of the Time Charter Time Rental
What are the advantages and disadvantages of the Time Charter limit rental form? That is:
Advantages of rental ships Time Charter
Time Charter limit rental has the outstanding advantage of:
- Cheap train rent:
The rental fee usually has relatively low prices, and if the businessman is effective and has a stable source of goods, the business efficiency can be very high.
- Activity:
The tenant has the right to use the ship during the lease, helping them to decide and run the freight flexibly.
- Stable income for ship owners:
The ship owner is guaranteed an income from the ship during the lease without having to worry about finding customers.
Disadvantages of Time Charter Time Rental
Time Charter limit is rented with the following disadvantages:
- Complex in management:
Ship mining management requires concentration and complexity, and the tenant is responsible for all aspects of ship operation.
- Template expenses:
The tenant is subject to non -fixed costs such as fuel, water, unloading, ... and fuel prices or unstable fluctuations.
- Market risk:
If the market has difficulty or does not have enough cargo, the charterer may have difficulty collecting profit and maintaining ship business.
Expenses to be paid when renting a Time Charter limit
What are the expenses that need to be paid when renting a Time Charter? That is:
The cost of the charterer to pay (for account of charterer)
The tenant is subject to expenses related to shipping activities, including:
- Port fee: (port charges);
- Fuel costs: running machine oil (FO, Do);
- Cost of cleaning tunnel: (Cleaning Holds);
- Expenses for inserting materials: (Dunnage);
- Cost of goods loading and unloading: (Stevedoring Charges).
The cost of the ship owner to be paid (for account of shipowner)
Meanwhile, the ship owner will be subject to costs related to maintenance and operation of the ship, including:
- Salaries and allowances for crew members and officers on board;
- Maintenance and Repairs;
- Food and food supply costs (Provisions);
- Depreciation of the ship (Depreciation);
- Supply spare parts, equipment for ship (stories, support and Equipment);
- Office and management (Overhead Charges);
- Insurance of ship (Insurance of ship);
- Train inspection fee and brokerage roses (Survey Charges, Brokerage).
Understanding what the concept of Time Charter is , the nature and important terms in the limited ship lease contract will help businesses optimize costs, manage risks effectively and improve competitiveness on the international arena ... Contact 0909 344 247 to receive advice and quotation of the North -South and international seafares transport service from Proship Logistics.
