Choosing the ideal term charter vessel

Let us face it; buying a boat is not something that everyone can afford. There are many instances where the capital to buy one is not adequate, but one still needs to use a vessel for different activities on the water.

This is where chartering comes in. This can be described as a shipping industry activity. In this case, a shipowner can hire out their vessel to another person, called the charterer. The contract that is arrived at is called the charter party. The ropes of the charter include time charter voyage charter and demise charter.

Charterer

There are cases when the charterer may have some cargo and then choose to get a ship owner to have the cargo delivered at a notice. This is referred to as the freight rate. In some cases, the rate can be on per ton basis or over a given route. In some cases, it can be charged on per day basis.

The charterer can also take the term charter vessel even without cargo for a given time period and then uses it to trade. He or she can carry cargo for a profit that is above the rate hired. Profit can also be made by re-letting the vessel in question to others who need it. A contract is usually formed based on the kind of ship that is involved as well as the type of charter.

The terms of the agreement determine the duration that the charterer can keep the vessel.

Types of charters

Demise Charter:

It also called the bareboat charter. This is where a vessel is hired and technical or administration maintenance is a part of the agreement. The charterer gets possession and can control the vessel. They also have to bear the financial and legal responsibility. However, the chartering company has to pay operating expenses. This includes hull insurance, port expenses crew, fuel, and all other operating expenses.

Voyage Charter:

Voyage charter is where the vessel and its crew are hired for a voyage between one point to the next. The charterer has to pay a lump sum or per ton. The port expenses are paid for by the vessel owner. The owner also pays for the crew costs and the fuel costs.

Time Charter:

A time charter is where a vessel is hired for a very specific time, the owner has to manage the vessel, but it is up to the charterer to direct and select ports. All fuel expenses and charges that are incurred during that period are paid by the charterer.

Variations of term charter vessel types

There are some variations to the above charters. There is the passenger cruise ship charter where a passenger cruise vessel is hired for a limited time for a private function exclusively where the term charter vessel is used in its entirety including accommodations. It can be used for fundraisers, music festivals, meetings, and global events.

Trip time charters have a shorter time and only cover the route specified. This is as opposed to the standard time charter where the charterer can use the vessel in different trade areas as agreed.

This is the bareboat yacht charter. This is usually a short term for a couple of weeks or less, the owner is responsible for offering the vessel in the right order and it has to be fueled. There are different times for which such a charter can be agreed upon.

There is also an affreightment contract. This is not really a charter contract, but it is very similar to the voyage charter. The owner carries cargo for a set time on a route specified. More than one vessel may have to be used. Demurrage is not the owner’s responsibility and he or she does not have any lay time period.

Where to get a term charter vessel?

Since it is not always practical to buy a vessel when one is needed, you can opt to look for a worthy term charter vessel. In such a case, an agreement is reached laying out the terms of using the vessel and the period of time you are allowed to use it.

At Harbors Shoppers, you can hire a term charter vessel at a fee and ensure that you follow the terms and conditions set. There are different vessels to choose from and with different capacities. The contract is usually straightforward and it outlines every person’s responsibilities under the contract.

There are professionals at Harbors Shoppers that can assist you in making the most sensible choice depending on how you intend to use the vessel in the first place. It is always important to evaluate all your needs and ensure that you actually settle for a vessel that is adequate to handle the task at hand. This can be in terms of horsepower, speed, and capacity. You may also choose a term charter vessel based on the amenities and features available.

You can also explore other boat categories such as ferries for sale, trawlers, pleasure craft boats, powerboats, power catamaran, fishing boats for sale, high performance boats, inflatable boats, sailing boats, saltwater fishing boats, freshwater fishing boats, center console boats, etc.