Time Charter
Category: Contracts
Definition (plain English)
A charter where a vessel is hired for a period of time rather than a single voyage.
Why it matters commercially
Time charters shift more operating and scheduling responsibility to the charterer, including route decisions and fuel exposure.
Example
A trader considered a time charter during a tight freight market but modeled bunker cost, utilization, and off-hire risk first.
Common mistake
Comparing time-charter daily hire to voyage freight without adding fuel, port costs, utilization, and operational risk.
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