1. Chartering Chartering party : Ship owner Charterer – cargo owner/transport operator/any person Chartering Types Voyage Charter/Time charter/Bareboat charter Shipbroker : as a third party and middle man

2. Chartering Voyage Charter Single voyage – from one port to another port Shipowner to bear all running expenses Crew and master – provide by the shipowner Laytime (time to spend at port for loading/discharge) Laycan 20 th /25 th Carrier = shipowner

3. Chartering Time Charter Can range from one month to years Shipowner to bear all running expenses and recruitment of crew and master Crew and master – provide by the shipowner Cargo capacity – control by charterer not shipowner Carrier = shipowner or charterer On/off hire survey : to ascertain condition of the vessel

4. Chartering Bareboat Charter Shipowner gives up all management and control Charterer – responsible for managing/running of the crew Shipowner receive fixed rate of hire Common for financial institutions for ship finance Survey and docking – agreed beforehand to ascertain ship conditions Option to purchase Charterer as carrier

5. Chartering Contract of Affreightment Given quantity over a fixed period of time No specific vessel is nominated Freehand for ship owner to manage his fleet

6. Chartering Standard Form of chartering General characteristics Approved by recognized international organizations Test in court – terms clearly defined and udnerstood Additional inserts

7. Chartering Baltic Exchange Long history : 250 years already dated back to early 1700’s Only international self-regulated broking market Air brokers – Baltic Air Charter Association 1949 Freight Index : BFI – Baltic Freight Index

8. Chartering Ship Broker May work as shipowner broker/charterer agent/competitive brokers Duties : link with the market a)Owner broker : to ensure all charterers know the details of his Vessel b)Charter Agent : to ensure all shipowner to aware of his need for a ship c)Post fixture department : resolve disputes between owner and charterers and to eliminate the need to resort to arbitration/courts d)Research Department : latest development in the market

9. Ship Broker Commission Agreed % of the freight to be paid Usually 1.25% for all brokers involved in the transaction by the owner or 1% to an exclusive broker Address commission – paid to the charterer to cover cost of managing the ship while it is on charter – 1.25% to 2.5% Chartering