Key Terms in Voyage Charter and Time Charter Agreements Charterparty agreements include two types of terms: implied and express. Implied terms apply automatically to all charterparties by law or general understanding, even if they aren't explicitly stated in the contract. Express terms, on the other hand, are specifically mentioned in the charterparty agreement.

Implied Terms

Five primary implied terms typically apply to charterparty agreements:

1. Seaworthiness: The shipowner must ensure the vessel is seaworthy at the beginning of the voyage.
2. Reasonable Despatch: The vessel must proceed with reasonable speed.
3. No Unjustifiable Deviation: The ship must stick to its agreed route without unreasonable diversions.
4. No Dangerous Goods without Notice: Hazardous cargo should not be shipped without prior notice.
5. Safe Ports: Ports chosen for loading and unloading must be safe.

This list is not exhaustive but covers the essential implied terms in most charterparty agreements.

Terms in Voyage Charter Agreements

Here are the main terms commonly found in voyage charter agreements:

• Ship's Details: Information about the vessel, including IMO number, flag, class, year of construction, and tonnage.
• Vessel's Location: Where the vessel is located at the time of chartering.
• Readiness to Load: The expected date when the vessel will be ready to load.
• Cargo Description and Quantity: Details about the type and quantity of the cargo to be carried.
• Loading and Discharge Ports: The ports where cargo will be loaded and unloaded.
• Freight Rate: The agreed rate for shipping the cargo.
• Laydays and Cancelling Date: The period allowed for loading and unloading, and the date after which the charterer can cancel if the vessel doesn't arrive.
• Notice of Readiness: Rules regarding notification that the vessel is ready to load or discharge.
• Loading and Discharge Rates: The speed at which cargo is loaded and unloaded.
• Demurrage and Despatch: Charges for delays and incentives for quick loading and unloading.

Terms in Time Charter Agreements

Time charter agreements include a different set of terms. Here are the main ones:

• Ship's Details: The same details as in voyage charters.
• Period of Hire: The duration for which the vessel is chartered.
• Trading Limits: The geographical regions where the charterer is allowed to operate the vessel.
• Delivery and Redelivery: Where and how the vessel will be handed over to the charterer and returned to the shipowner.
• Laydays/Cancelling: The charterer's right to cancel if the vessel is not delivered by a specified date.
• Hire Rate and Payment: The agreed hire rate and payment terms.
• Off-Hire: Conditions under which the charterer is not required to pay hire (e.g., during breakdowns).
• Bunker Fuel: Rules about the quantity and payment for fuel.
• Permitted Cargo: Types of cargo allowed on the vessel.
• Excluded Cargo: Cargo types that the shipowner does not permit on the vessel.
• Speed and Bunker Consumption: Specifications for the vessel's speed and fuel consumption.
• Liability Allocation: How liability is distributed between the charterer and the shipowner.