Q.What is Charter Party ?

A charter party is the written agreement by which a ship owner hires out a whole ship (or a large part of it) to a charterer for carrying goods.

In the Tamil Nadu HSC Class-11 Commerce syllabus, water transport distinguishes between liner shipping (fixed routes/schedules) and tramp shipping (ships hired as required). A charter party belongs to tramp shipping.

• Meaning: A charter party is a written agreement or contract between the ship owner and the charterer (the person who hires the ship) for the hire of an entire ship or a substantial part of it.
• Contents: it states the freight (hire charges), the route to be followed, the period of hire and the duties and responsibilities of both parties. …