What Is Ship Chartering And How Does It Work? Why Is It So Important?

Ship chartering is a very famous activity that happens in the shipping industry. Mainly shipowners hire professional expert companies for ship chartering. 

In simple words, this important process makes sure that the organisation’s cargoes get delivered safely in the most effective manner. The entire process is divided into three different parts: demise charter, voyage charter, and time charter.     


Ship Chartering


However, this blog points out some of the important topics of ship chartering. At first, you are going to learn how ship chartering works and the second topic would be the reasons behind its importance. 

So are you ready?



As it said ship chartering works in three different parts: demise charter, voyage charter, and time charter. Let's start with the demise part. 



Demise part

It mainly refers to hiring ships without any administration or technical maintenance included as part of the agreement. Most of the expense is borne by the charter. The owner of the ship charter will be responsible for everything if anything happens to the ship. 



The voyage part 

It refers to hiring the ship crew for a voyage between a load port and an unloading port. The shipowner gets paid for every ton(weight) or lump-sum (single large payment) basis. While the shipowners pay only the port costs. 



The time charter 

It precisely means hiring a ship for a fixed time frame, the owner retains management of the ship, but the character has the power to choose in which port to dock the ship will go. It bears all the ship incurs fees. It includes the cost of fuel port charges and daily hiring price to the owner of the ship. 



Why is it so important? 

The ship chartering is important to secure good character contracts so that it can generate more revenue for the company. Additionally, it has more benefits, such as- it understand the contractual provisions, help to learn how to avoid the potential pitfalls in chartering ships, manage the charter party dispute that may create some problems and many more. 

Comments

Post a Comment

Popular posts from this blog

Things to Consider Before Hiring Shipping Company

Image
Shipping is an important part of international trade and most of the product that is being traded travels through ships. However transportation of goods through ships is very challenging and people must overcome many logistical challenges to transport their goods in the most efficient manner. For this reason, many people hire a shipping company who can handle all the shipping related logistical challenges on their behalf. There is a list of shipping companies in India and people can hire any one of those shipping companies to transport their goods. However, people should keep in mind that not all shipping companies provide the same services and hence people should choose the shipping company very carefully before they hire any. People can read the following things before they hire any shipping company. Transport time : The time a shipping company takes to transport all the goods from port to port is very crucial. If there is any kind of delay in the transportation of the goods it can c
Read more

Advantages of Hiring One of the Top Stevedoring Companies in India

Image
To operate a ship and to move cargo from one place to another, a ship owner needs to overcome many challenges. Sometimes, if the operations of the ship are not perfectly managed then it could cause huge losses for the shipowner. One such challenge where ship owners can lose a huge amount of money is the loading and unloading of the cargo in the poart and other dockside works in the port. And to overcome these challenges, ship owners can hire one of the top stevedoring companies in India . There are many advantages to hiring a stevedoring company. The following are the most notable advantages of hiring a stevedoring company:- Faster Operations in the Port: If a ship owner hires one of the top stevedoring companies in India, then they help the ship owner to load and unload all the cargo in a very short amount of time. They also help to manage all the dockside works of the port. As a result of all these, a ship can do all the operations of the port much faster and can leave the port much
Read more

Why the Marine Crafts are so Important? – Here is Your Answer

Image
Marine crafts are an essential and irreplaceable part of the world we live in. It forms the backbone of the world economy. From food to clothing and from fuel to construction material, almost every goods we use in our life are being shipped by marine crafts throughout the world. Marine crafts are also used to catch fish and extract natural resources from the ocean. Marine crafts can carry a huge amount of goods that no other mode of transportation could carry and cover a long amount of distance with low cost of operation. Marine crafts could make a huge amount of profit with every journey it makes. Marine transport accounts for more than 80 percent of world trade by volume and over 70 percent of world trade by value. The amount of marine trade doubled from the period between 1990 and 2020. In 2020 the volume of marine trade was estimated to be around 11 billion tons. An estimated value of the shipping industry is said to be more than 1.5 trillion US Dollar and is expected to grow more
Read more