Charter party

The contract under which a shipowner places a vessel or its cargo capacity at a charterer’s disposal. The three principal families are the voyage charter (owner carries a cargo for a freight rate and keeps operational control), the time charter (charterer directs the ship’s commercial employment for a period and pays hire), and the bareboat or demise charter (charterer takes the ship without crew and runs it as if owner). Standard forms such as GENCON, NYPE, and BARECON give each family a tested clause set.