What are the differences between voyage
and time charter parties?
Chartering of a vessel is maritime term which is used to describe hiring or renting a vessel
especially for bulk cargo transportation.
On the previous articles | have explained voyage charter party contracts and time charter
party contracts one by one in detail
Both time and voyage charters are types of charter party contracts that can used when
chartering of vessels for bulk cargo carriage,
There are different standard format time and voyage charter party contracts available that
can be used with different type of commodity transportation. For example;
* BIMCHEMTIME 2005 is a standard format time charter party contract,
which is created by BIMCO, is used when chartering vessels carrying
chemicals in bulk.
* Gencon 94 is a standard format voyage charter party contract, which is
created by BIMCO, is used when chartering vessels carrying commodity
cargoes in bulk.
What are the differences between
voyage and time charter parties?
Today I would like to explain the main differences berween voyage charter party contracts
and time charter party contracts.
What is a voyage charter party?
A voyage charter party can be defined as a legal contract, in which shipowners promise to
carry a particular cargo on a particular ship on a particular voyage for an agreed sum.
What is a time charter party?
A time charter party can be defined as a legal contract, in which charterers are hiring of
vesselilba: a Specific period Sf dre ron tee abipowinees.
What are the differences between voyage charter parties and time charter parties?
Responsibilities of the Parties:
Time Charter Parties:
# Under time charter party contracts, shipowner remains responsible for the
technical operation of the vessel, but commercial control of the vessel is
handled by the charterer.
# Under time charter party contracts, shipowner must cover all costs associated
with crewing, maintenance of the vessel and insurance, but vessel fuel
consumption and port charges will be compensated by the charterer.
Voyage Charter Parties:
«Under voyage charter party contracts both technical and commercial
management handled by the shipowner.
+ Under voyage charter party contracts, shipowner is not only responsible for the
costs associated with crewing, maintenance of the vessel and insurance, but also
pays for all che costs of the voyage, including bunkers and port charges.
Duration:
Time Charter Parties:
«Time charter party contracts are signed for a limited period of time without
dictating a fixed route to the charterer. During the charter party contract
period, the charterer could operate the vessel commercially within allowed
routes freely.
Voyage Charter Parties:
* Voyage charter party contracts are signed to carry specific amount of goods
between pre-determined route. 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.
Calculation of the Contract Amount:
Time Charter Parties:
* Under time charter party contracts charterers pay daily hire co the shipowners
of the vessels.
Voyage Charter Parties:
* Under voyage charter party contracts charterers ate obliged to pay the freight
to the shipowners. Freight is calculated either according to the quantity of
cargo loaded or carried, or a lump sum freight (money paid to shipper for a
charter of a ship up to stated limit irrespective of quantity of cargo).