Contract of Affreightment

Long-term contract obliging the carrier to lift a specified quantity of cargo over a defined period (typically one to ten years) using nominated tonnage selected from the carrier's fleet or chartered in. The COA fixes the freight rate or rate index, the cargo quantity, the loading and discharging port pairs or ranges, and the laytime regime; individual voyages are nominated under the COA as the cargo becomes available. BIMCO VOLCOA and GENCOA are the dry-cargo standard forms; specialised contracts cover LNG, LPG, and chemical trades.