Everything you need to know about ship chartering
Ship chartering is an essential process as it ensures that an organization’s cargoes get delivered safely in the most cost effective manner. In fact, it is essential for charterers to have an extensive comprehensive understanding of the essential aspects of chartering, as it equips them with insight to make strategic chartering decisions and negotiate for better charter parties. Therefore, here is a guide on how ship chartering works and the importance of it. There are three parties in the process of ship chartering: The ship-owner who owns the vessel being rented, the charterer who requires the ship on rent, and the shipbroker who has helped to bring them together. Let’s take a quick look at the roles of each of these parties of ship chartering. Renting a ship is known as ship chartering and it begins with the ship-owner and a second party entering into an agreement. In shipping parlance, this agreement is known as a charter party. The party that rents out th...