Chartering Basics

Chartering basic is an introduction to the concept of chartering. Chartering is an important aspect of logistics especially for the shipping industry. It is crucial for transportation through ships as it involves charters to be used.

In simple words chartering is a process of hiring, in the international logistics industry. It is a process of hiring a charterer (who hires ships). A charterer acts as a ship-broker and anyone looking for trading his goods internationally approaches to any of the available shipbrokers. Through a contract, the charterer provides the first party with a vessel from the shipowner. The contract made is called “charter party” and the whole process of hiring a vessel and charterer is called the chartering. Also, there are people making a profit through the cargo transportation, they hire vessels from the shipowners keeping charterer as an intermediary or broker and makes a profit by charging higher freight rates.

Charter party a standard contract form is used to record the duration, rate, and all the agreed terms and conditions between the charter and ship owner. There are different types of charterers depending on the type of freight and the vessel required.

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