Charter Party

It is an agreement by which the ship owner agrees to place the entire ship or part of it at the disposal of merchant for the purpose of carrying goods from one port to another. Thus under a charter party the entire ship is hired.

A charter party usually contains the following terms:

• Names, addresses and the other particulars of the shipowner.
• The name of the ship.
• The nationality of the ship.
• The measurement of the ship as indicated by the Registered tonnage.
• The location of the ship at the date of the charter party.
• The sea worthiness of the ship for the intended voyage.
• The shipowner's duty to bring the ship to the agreed port of loading.
• The charter's liability to pay right.
• The charter's right to the other goods on board under bills of lading.
• Nature and duties of the master and crew of ship towards charter.
• Conditions of cancellation or contract of charter party.