Charter Party
Category: Contracts
Definition (plain English)
A contract for hiring a vessel or vessel capacity, setting freight, loading/discharge duties, laytime, demurrage, and voyage terms.
Why it matters commercially
Charter-party wording can move major cost, delay, and cargo-responsibility risk between buyer, seller, trader, and shipowner.
Example
A grain trader reviewed charter-party laytime and demurrage terms before accepting a CIF sale.
Common mistake
Treating charter freight like a normal container booking and missing laytime, NOR, demurrage, loading terms, and cargo-readiness obligations.
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