CoA

A contract of affreightment (CoA) is an agreement under which an owner commits to carry a stated quantity of cargo over a period in multiple shipments, without naming a specific vessel for each lift. The CoA fixes the freight basis, the cargo tonnage, the lifting program (for example 12 cargoes of 50,000 mt over a year), and laycan spreads, leaving the owner to nominate suitable tonnage for each voyage. Each lifting is then performed on the underlying voyage charter terms incorporated by reference. Industrial shippers use CoAs (BIMCO VOLCOA, GENCOA) to lock in capacity for steel, coal, or grain programs.