Q.What is Charter Party ?

A charter party is a formal written agreement under which a shipowner leases an entire ship (or a large part) to a charterer to carry goods, either for a specific voyage or for a fixed time, on agreed freight and conditions.

In the Tamil Nadu HSC Commerce (Transportation) syllabus, water transport allows two ways of sending goods: booking space on a liner, or hiring a full ship through a charter party when the cargo is large.

• Meaning: A charter party is the written contract of hiring a ship between the shipowner and the charterer (the person who hires the ship).
• Scope: The whole ship or a substantial part of it is placed at the disposal of the charterer.
• Types:
  • Voyage charter: the ship is hired for a specific voyage from one port to another.
  • Time charter: the ship is hired for a fixed period of time, during which the charterer may use it for various voyages. …