Berth charter
C1. Commercial shipping, chartering, economics and financeDefinition
Voyage charter where laytime starts when the vessel is at berth.
A berth charter is a voyage charter under which laytime begins only when the vessel reaches the agreed berth, not on arrival at the port limits. It contrasts with a port charter, where the ship becomes an arrived ship once inside the port and ready, even if no berth is free. Under a berth charter the owner carries the risk of port congestion and waiting time, since hire-equivalent earnings stop until the ship is actually alongside. The distinction was settled in The Johanna Oldendorff and turns on the wording of the charter party’s loading and discharge clauses.
Source: The Johanna Oldendorff (1973); GENCON laytime provisions