Period charter

A period charter is a time charter let for an extended duration, typically one to several years, as distinct from a single trip-charter. The charterer pays hire for the period and directs the ship’s commercial employment within trading limits, while the owner keeps technical operation and crewing. Period rates trade at a premium or discount to the spot market depending on the forward view: owners fix away on period in a falling market to lock in earnings, charterers cover long on period when they expect rates to rise. NYPE and BALTIME are the common dry forms; SHELLTIME governs tanker period charters.