What is voyage charter?

Definition of voyage charter party : a charter party whereby the owner of a ship agrees to transport a full shipload of cargo owned or furnished by another person with the ship’s crew and master in control of the navigation.

Is a spot charter and a voyage charter the same?

A spot charter is a one-off chartering of a tanker for a single voyage. This is in contrast to a time charter, which is for an extended period of time including multiple voyages.

What is voyage cost?

Voyage costs are the costs incurred to earn the freight or other voyage revenue. They vary with the length of the voyage and the number of port calls.

What is time charter rate?

Time charter equivalent is calculated by taking voyage revenues, subtracting voyage expense, including canal, bunker and port costs, and then dividing the total by the round-trip voyage duration in days. It gives shipping companies a tool to measure period-to-period changes.

Is a time charter a contract of carriage?

Such a charter is a contract for the hire of a crewed vessel involving use of the vessel and the provision of services from the crew. Often, the basis of a time charter is actually a hybrid known as ‘TCT’, or time charter trip.

How is voyage charter calculated?

Time charter equivalent is calculated by taking voyage revenues, subtracting voyage expense, including canal, bunker and port costs, and then dividing the total by the round-trip voyage duration in days.

What is included in voyage expenses?

What are voyage costs (or voyage expenses)? Costs associated with the ship’s employment, including costs of bunker fuel, canal tolls, light dues, port charges (including pilotage, towage, berth charges, agency fees, linesmen’s charges, etc.), passenger-handling costs, and cargo- handling costs.

How is charter time calculated?

What is the difference between voyage charter party and Time Charter?

Under voyage charter parties shipowners carry pre-defined cargo between pre-determined ports. Once the transportation is completed, the voyage charter party contract comes to an end. Under time charter party contracts charterers pay daily hire to the shipowners of the vessels.

What are the advantages of a voyage charter company?

TIME CHARTERING VOYAGE CHARTERING Confidentiality and control on access to cargo. Firm control over the vessel and the voyage. Access to varied tonnage while being asset light. Voyage Flexibility Source of income and profitability. 5 Fixed income benefits.

What is a time charter agreement?

A time charter is a time-bound agreement, as opposed to a voyage charter. The shipowner leases a vessel to a charterer for a fixed period of time, and they are free to sail to any port and transport any cargo, subject to legal regulations.

What are the different types of charters?

There are three main types of charters – voyage charter, time charter, and demise charter. The demise charter is often known as a bareboat charter, and grants ownership or possession of the vessel to the charterer subject to certain time-bound conditions. A voyage charter is a type of charter in which a vessel is leased out for a particular voyage.