A written contract between the owner of a vessel and the party desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate, and ports involved in the trip.
Major types of Charter Parties:
- Time Charter - A contract to rent a fully-equipped vessel including crew for a certain period of time.
- Voyage Charter - A contract to rent a fully-equipped vessel including crew for a specific voyage between 2 or more designated ports.
- Space Charter - A contract for only a portion of the vessel, e.g. one hold, or space on deck. Space charters are used to have a vessel call at an out of the way or an un-scheduled port.
- Bareboat Charter - A contract to rent a vessel without equipment, crew, fuel, or stores.