Charterparty: Difference between revisions

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A '''Charterparty''' (sometimes '''charter-party''') is a maritime contract between a [[shipowner]] and a " charterer" for the hire of either a ship for the carriage of passengers or cargo, or a yacht for pleasure purposes.
The name "charterparty" is an [[anglicisation]] the [[French language|French]] ''charte partie'', or "split paper", i.e. a document written in duplicate so that each party retains half.<ref name="EB1911">{{Cite EB1911|wstitle=Charter-party|volume=5|pages=953}}</ref><ref>The [[Latin]] term ''charta partita'' is a [[back-formation]], and not a true etymological source.</ref>
 
==Types of charterparty==
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There are three main types of charterparty: '''time, voyage''' and '''demise and another
''':
* In a '''[[demise charter|demise]] (or bareboat) charter''', the charterer takes responsibility for the crewing and maintenance of the ship during the time of the charter. He assumes the legal responsibilities of the owner, and is known as a disponent owner.{{cncitation needed|date=January 2018}}
* In a '''[[time charter]]''', the vessel is hired for a specific amount of time. The shipowner manages the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter the vessel on a time charter or voyage charter basis.
* In a '''[[voyage charter]]''', the charterer hires the vessel for a single voyage, but the shipowner provides the master, crew, [[bunkers]] and supplies.<ref>[http://www.maritimeknowhow.com/English/Know-How/Chartering/types_of_contracts_of_affreightment/voyage_charter.html Maritimeknowhow website: voyage charter] {{webarchive |url=https://web.archive.org/web/20110714034807/http://www.maritimeknowhow.com/English/Know-How/Chartering/types_of_contracts_of_affreightment/voyage_charter.html |date=July 14, 2011 }}</ref>
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Whereas a charterparty is the contract between a shipowner and a charterer, a contract of carriage lies between the shipper and the carrier. A carrier will issue a shipper with a [[bill of lading]], a receipt for cargo shipped which also serves as evidence of the contract of carriage. (In a demise charter, the charterer is the carrier; in a time or voyage charter the shipowner is the carrier).
 
The US [[Carriage of Goods by Sea Act]] (COGSA), and the UK [[Carriage of Goods by Sea Act 1971]] (which ratifies and incorporates the [[Hague-Visby Rules]]) do NOT apply to charterparties, but do apply to bills of lading (and similar documents such as ships delivery orders, or sea waybills).<ref>[[Carriage of Goods by Sea Act 1992]]</ref>
 
When a bill of lading is issued to a charterer by the shipowner, the question arises as to which is the dominant document.<ref>''The Draupner'' [1910] AC 450, HL</ref><ref>''The Henryk Sif'' [1982] 1 LL R 456 </ref> If a shipper returns a bill of lading to a carrier (perhaps as a [[Pledge (law)|pledge]]), the carrier will hold it only as a token of the pledge.
 
In both USA and the UK, the COGSA legislation provide a statement of the minimum duties that a carrier owes to the cargo-owner. If the charterer has shipped cargo, charterparty document may incorporate the COGSA or the Harter Act, since the charter is also a cargo-owner. Such aan incorporation is valid and enforceable even without the issuance of a bill of lading. In the reverse case, if a carrier issues a third-party shipper with a bill of lading that incorporates charterparty terms, the shipper/cargo-owne)owner would not be liable for fees such as [[demurrage]], which are payable only by a charter.
 
Lawsuits brought for the breach of an obligation under a charterparty fall within admiralty jurisdiction. If a breach of charter terms creates a maritime lien, the suit may be ''in rem'' (i.e. against the vessel itself)..{{cncitation needed|date=January 2018}}
 
In pleasure boating, the most frequent charter arrangement is bareboat [[yacht charter]]. A voyage or time charter is used only for larger yachts and is uncommon. Yacht charter flotillas are mostly made up of boats belonging to individuals or companies who only use their boats on a part-time basis or as an investment. A recent innovation in recreational boating is "time-share chartering" whereby several charterers are assigned a certain number of days per month or season in a manner which resembles real-estate time-share..
 
==Typical clauses==
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A ready berth clause is inserted in a charterparty, ''i.e.'' a stipulation to the effect that [[layday]]s will begin to count as soon as the vessel has arrived at the port of loading or discharge "whether in berth or not". It protects shipowner's interests against delays which arise from ships having to wait for a [[berth (moorings)|berth]].
 
==See also==
* [[Air charter]]
 
==References==
{{Multiple issues|{{refimprovemore citations needed|date=January 2018}}{{one source|date=January 2018}}}}
{{reflist}}
 
 
==See also==
* [[Air charter]]
 
==External links==
{{Ship chartering}}
 
 
 
{{EB1911|wstitle=Charterparty|volume=5|pages=953}}
 
[[Category:Water transport]]