Short Description
In a time charter, the vessel is hired for a specific amount of time. The owner still manages the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter the vessel on a time charter or voyage charter basis.The demise or bareboat charter is a subtype of time charter in which the charterer takes responsibility for the crewing and maintenance of the ship during the time of the charter, assuming the legal responsibilities of the owner and is known as a disponent owner.
TIME CHARTER A charterer pay for the use of a vessel for a specified period. The charterer also provides and pays for fuel, port charges, and pilotage. The shipowner retains responsibility for navigation and most operations aboard the vessel.
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Alternative 2: buy or use your own ship. If already owned, the Breakeven / Day will be filled in automatically (if it has been defined in the Running Cost section of the Internal Data on the Vessel Admin).
On time charter, the charterer undertakes to hire the ship for a stated period of time or for a specified round-trip voyage or, occasionally, for a stated one-way voyage, the rate of hire being expressed in terms of so much per ton deadweight per month. Whereas on a voyage charter the owner bears all the expenses of the voyage (subject to agreement about costs of loading and discharging), on...
Transport vessel or vehicle charter for a fixed perod instead of for a certain number of voyages or trips. Time charter generally does not include loading and unloadingcosts in the charter rate.
- A time charter is the hiring of a vessel for a specific period of time; the owner still manages the vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, and a daily hire to the owner of the vessel.
The purpose of the TC Contract modules is to store all TC contracts, both in and out, external and internal. This is useful as the contracts can be accessed either directly through the module or via the voyage estimate or booking and operations modules. It provides easy access to the most important terms and conditions of all contracts. If the contract is supplemented with an attachment of e.g. scanned CP, the user has access to the full details directly in the system.
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On time charter, the charterer undertakes to hire the ship for a stated period of time or for a specified round-trip voyage or, occasionally, for a stated one-way voyage, the rate of hire being expressed in terms of so much per ton deadweight per month. Whereas on a voyage charter the owner bears all the expenses of the voyage (subject to agreement about costs of loading and discharging), on...
A TC In Contract can be defined as a contract of hire of a vessel for a specified period of time, whilst a TC Out Contract handles the letting of a vessel for a particular time period. Under both, the Charterer will decide route and ports, pay a daily hire, all port charges and fuel consumption whilst the Vessel Owner remains in control of the vessel.
Each contract will include agreed terms and conditions, for example duration and rate/s, option/s, profit sharing, deliver/redelivery terms, invoice parameters, etc. If a contract entry is supplemented with an attachment of for example a scanned Charter Party (CP), its full details will be directly accessible in the system. Invoices will be generated towards either the charterer (TC Out, Accounts Receivable) or the owner (TC In, Hire Payable).
Only TC In Contracts are entered and saved directly into the Time Charter Contracts module. TC Out Contracts are automatically saved and archived in the module but created through Voyage Estimate.
Let’s start with the concept of a voyage charter. A voyage charter is where someone needs to move cargo from point A to point B. They pay the going rate, and once the cargo is delivered, then – barring some form of legal claim, the voyage ends and both parties move on. Similar to you booking a hotel for a few days. Time-charters take this idea a step further. Under this arrangement, the person looking to move cargo might know that he has a lot of cargo to move – and will therefore need the vessel for more than voyage. Instead of booking the vessel every few weeks, he instead agrees to charter (i.e. rent or lease) the vessel for, let’s say one year. The rate he agrees to take the ship is known as the time-charter rate. In addition to paying this rate, known as “hire”, the person now chartering the vessel must pay all voyage costs, which include bunkers, port costs, canal fees – or generally speaking – any costs incurred due to the fact that the vessel in not sitting idle at anchor.
Long Description
The Voyage charter section:
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