PRIDE Foundation Malaysia My Blog Types of Vessel Charters

Types of Vessel Charters

Ship chattering is basically hiring a used ship from the vessel owner to another company for the transportation of commodities. There are many different kinds of charter contracts, as well as many different cost factors and, of course, many different players. The essentials of chartering, including its operation, participants, and cost distribution, will be covered in this article. There is three types of Vessel  charters Malaysia and we will go through each one of them..

Voyage Charterer

The first one we got is a voyage charterer. The voyage charterer is the crew that usually stays between loading ports and discharge ports. In this kind of contract, the charterer pays the ship owner on a per-ton or basis payment. All port expenses, with the exception of stevedoring, fuel, and crew costs, are paid for by the owner, and the fee for using the vessel is referred to as freight. The terms of a voyage charter specify a specific time for cargo loading and unloading. The charterer is required to pay demurrage if the laytime, as it is known, is exceeded. Voyage Charter also stays in one way with a specific spot and specific cargo.

Time Charterer

Next, we have time charterers that were hired at a specific time so it is opposed to voyage charterers. The owner still manages the ship but time chartered will set the port, best route, and operational control during the contract. But here, the owner still pays for port charges, fuel costs, cargo handling costs, commissions, and also daily hire fees. There is also a time when the time charterer covers specific voyage routes for the transportation of specific cargo. It looks like a combination of voyage charterer and time charterer. The time charterer has similar responsibilities to the voyage charterer but the period of the contract depends on when the voyage is completed.

Demise Charterer

The other one is the demise charterer also known as a bareboat charterer or actually, it is an owner who enters the demise charterer. It has full control of the vessel. Aside from the cost of building the vessel that was paid by the owner, the other thing is paid by the charterer. The contract may be for long-term charters that endure for many years if the demise clause is present. 

That could be the type of hire purchasing which is charterer actually comes to buy a ship. Bareboat Yacht Charter is the phrase used in the leisure sector; Demise Charter is not. Typically, it is a brief charter lasting only a few weeks. The yacht is provided by the owner fully fueled and ready for the open sea. The cost of the fuel used must be covered by the charterer.

So these are three types of Vessel charterers. It is one of them that has specific responsibilities and work to do. But in all cases, the owner is responsible for the capital cost of building and equipping the ship. The two key participants in ship chartering are the ship owner and the charterer. Others exist, the most essential being the ship broker. That’s how the ship will go smoothly to its place. For more info just check the link, Vessel charters Malaysia.