Voyage Charterparty in Practice

Did you know that ownership and control of a vessel often reside in different parties?

Today I will like to highlight:
Voyage Charterparty in Practice.

This document is ideal for:

- Shipping lawyers
- Cargo owners
- Students

And all those who are curious about the topic.

You can either just read the content on here or grab an HD PDF copy of all our sheets here:


Formation and Terms of the Charter

A voyage charter is a contract between the shipowner and the charterer, where the ship is hired for a single voyage between specified ports.

The key to grasping this concept is through the “PACT” framework which stands for:

Parties,
Agreement,
Compliance, and
Terms.

Types of Charters

To understand the differences between the various types of charters,
remember the mnemonic “DTSV”
which stands for:

Demise,
Time,
Slot, and
Voyage charters.

Parties to the Charter:
Roles and Responsibilities

Shipowner
Charterer
Intermediary

Framework for Understanding Responsibilities:
The “SCOPE” Model

To simplify, we use the SCOPE model, which stands for:

Seaworthiness,
Compliance,
Operations,
Payments, and
Execution,

to categorize the responsibilities.

Description of the Ship

In a voyage charter, the accurate description of the ship is crucial
for several reasons, including
legal compliance,
safety, and the
satisfaction of specific
contractual obligations.

Vessel details:

Name of the vessel
Classification
Condition
Tonnage
Capacity

Compliance & standards:

Operational standards
Regulatory compliance
Contractual compliance


Practical Steps for Ensuring Compliance

Documentation
Communication
Verification
Adaptation

By focusing on the detailed description of the ship and emphasizing compliance with both regulatory and contractual standards, parties involved in a voyage charter can mitigate risks, avoid disputes, and ensure the smooth execution of their agreement.

And a lot more!