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What is Time Charter in shipping?
A time charter is the hiring of a vessel for a specific period of time. The owner still manages the vessel, but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, commissions, and a daily hire to the owner of the vessel.
What is a charter in shipping?
Chartering is an activity within the shipping industry. A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding steering), fuel costs and crew costs.
What is charter bill of lading?
Charter party bill of lading is another type of bill of lading used under sea mode of transport. If one shipper or a group of shippers arranges to charter their goods to final destination, a vessel is chartered. This chartered vessel is meant to move the goods exclusively for such shipper or shippers.
What is the difference between bare boat charter and time charter?
A bare boat charter is also referred to as a demise charter. Under this the owner of the ship gives its possession to a charterer who hires his own crew and master. A time charter refers to a ship that has been hired by a person for carrying out a trade for a specific period of time.
How much does it cost to charter a cargo ship?
The average daily rate for a 3,500-TEU fearless ship has dropped to $11,900 from $13,500 in August and $19,000 in June, and is now below the 2010 average of $13,250, according to Clark sons.
How is charter equivalent time calculated?
Time charter equivalent is calculated by taking voyage revenues, subtracting voyage expense, including canal, bunker and port costs, and then dividing the total by the round-trip voyage duration in days. It gives shipping companies a tool to measure period-to-period changes.
What is the difference between voyage charter and time charter?
A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. A time charter is the hiring of a vessel for a specific period of time. The owner still manages the vessel, but the charterer selects the ports and directs the vessel where to go.
What is voyage cost?
Voyage costs are the costs incurred to earn the freight or other voyage revenue. They vary with the length of the voyage and the number of port calls.
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