Charter party hiring the vessel for a fixed period; charterer directs employment, owner provides crew/insurance/maintenance.
In practice
Master receives orders from charterer's voyage instructions / OPS team; off-hire periods are recorded carefully because each hour off-hire reduces hire owed. Bunker quantities at delivery and redelivery are surveyed jointly.
Regulatory detail & full definition
Charter party hiring the vessel to a charterer for a fixed period at an agreed daily hire rate. The charterer directs the employment of the vessel within the trading limits and pays for fuel, port charges, and cargo handling; the owner provides the crew, insurance, and routine maintenance and remains responsible for seaworthiness. BIMCO NYPE 2015 and Shelltime 4 are the standard forms for dry cargo and tanker time charters respectively. Off-hire periods, performance clauses, and bunker quality survive as the principal commercial disputes between owner and time-charterer.