Charter party forms

Charter parties (CPs) are the underlying commercial contracts between shipowner and charterer for the use of a vessel. Standard-form CPs — developed and maintained by BIMCO, the Association of Ship Brokers & Agents, oil majors, and industry bodies — give the market a common contractual vocabulary. Almost every modern fixture is based on a standard form modified by additional clauses ("riders"). Understanding which form applies is essential context for any commercial + operational discussion.

Three principal charter types

• Voyage charter. Charterer pays freight per tonne (or lumpsum) for a specific voyage between named ports. Owner remains in commercial + operational control. Suitable when a single cargo movement is required.
• Time charter. Charterer pays hire per day for a specific period. Charterer directs the trading routes (subject to safe-port + safe-berth clauses) and pays bunker + port disbursements. Owner supplies + maintains vessel + crew.
• Bareboat charter (demise charter). Charterer takes possession of the vessel + crews it + operates it + pays all costs; owner receives hire only. Effective ownership transfer for the charter period. Used in leasing structures + reflagging.

Standard forms — time charter

Standard forms — voyage charter

Standard forms — bareboat

BIMCO SmartCon library

BIMCO's current online SmartCon platform is the market reference for standard clauses + full-form CPs. Standard clauses covering sanctions, war risk, MARPOL sulphur cap, cyber, hours-of-rest MLC compliance, weather routing, and dozens of other topics are updated periodically. All modern fixtures include BIMCO-standard sanctions + war-risk clauses.

Master's practical implications

• Read the fixture recap. Every voyage begins with a fixture recap identifying the standard form + rider clauses. Master should read the recap before departing on a new voyage.
• Understand the "safe port" obligation. Time-charter CPs give the charterer the right to nominate ports but require ports to be "safe" — no political risk, no draft or approach issues. Master must object to unsafe-port nominations.
• Log off-hire events carefully. Any period the vessel is prevented from performing (breakdown, deviation for weather, off-hire clause events) must be logged with time-of-off-hire + time-of-restoration. Central to hire calculation.
• Signing bills of lading. On charter, Master signs B/L on behalf of the carrier per the CP's scope-of-agency clauses. Understand who the carrier is (owner or charterer) under the specific CP.
• Weather-routing decisions. Deviations from great-circle + speed changes for weather protection interact with performance warranties. Document reasoning in the deck log.

See also

• · Charterparties — general framework.
• · Bill of Lading — signed under the CP's scope.
• · Laytime + demurrage.
• · Freight indices.

Last verified 14 days ago