Chartering is a way into marine transport without buying a vessel. The three main contract types, voyage charter, time charter and bareboat charter, each split cost and risk differently between the Shipowner and the Charterer.
Voyage Charter
The Charterer pays Freight for one defined voyage from the loading port to the destination port, usually per tonne of cargo. The owner runs the vessel, and the crew, fuel and port costs are usually theirs too. If you have a single, defined cargo, this is the simplest option.
Time Charter
The Charterer takes the vessel for a set period (six months, for example) and pays daily Hire. The owner provides the crew and technical maintenance. The Charterer pays for fuel and port costs and, within the permitted trading limits, decides where the vessel goes. This model suits you if you have several cargoes in succession.
Bareboat / Demise Charter
The Charterer takes delivery of the vessel without a crew and operates it themselves. They usually take on crewing, operation and technical maintenance, but legal ownership stays with the owner, and the contract sets out exactly how responsibilities are divided. This model suits companies that already have a technical team and crew and want to expand their fleet without buying.
How is the charter rate set?
- Vessel type and capacity: Tug, Barge, Landing Craft, General Cargo vessel and platform supply vessel (PSV).
- Contract length and season: demand and rates usually shift with the offshore project season.
- Route and ports: port costs and Draft restrictions.
- Delivery and Redelivery terms, the fuel remaining in the tanks, and insurance.
Before you sign
Delivery and Redelivery clauses, permitted trading limits, the definition of the vessel's readiness and Off-hire terms are among the most common sources of dispute. Charter contracts at a glance unpacks these clauses. To see vessels that are available, browse the vessel charter listings. For rate setting or drafting a contract, use our chartering consultancy, or contact me, Pooria Adli, at Shipo Market and we will talk it through.