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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