Explain the different types of ship charter service

Answer 1

A charter is a ship hired for a specific voyage or amount of time. It is similar to hiring a limousine service or taxi for direct point-to-point service. The shipowner essentially leases the vessel to a charterer (the customer) who uses the ship to move its own cargo. Some charterers move cargo for other companies with the goal of making money on the difference between leasing costs and the price charged to other customers. Charter ships operate in geographic regions defined by the individual customer according to the type of charter agreed to. The most common types of charters include:

• A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding stevedore services), fuel costs, and crew costs.
• A time charter is the hiring of a vessel for a specific period of time. The owner manages the vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, and a daily charter rate to the owner of the vessel.
• A demise charter is a long lease of a vessel in which the charterer has total control of the vessel, manages the officers and crew, and pays all expenses for maintenance and operation. A bareboat charter is a demise charter in which the charterer places its own master and crew onboard the vessel.