Voyage Charter

Under the Voyage Charter Party the shipowner is paid freight for carrying cargo from one port to another.

All Charter Parties have clauses which are more or less common, and these are as follows:

1. Name of steamer.

2. Size and position.

3. Loading and discharging ports.

4. Quantity and kind of cargo.

5. Rate of freight and method of payment.

6. Lay days for loading and discharging.

7. Demurrage.

8. Cancelling date.

9. General average clause.

The Clause relating to the Steamer usually states that the ship is tight, staunch and in every way fitted for the voyage, i. e. it warrants the seaworthiness of the ship and her fitness for the voyage and for the cargo to be carried.

The destination of the steamer is given in the Charter Party either by naming a direct port to which the steamer must proceed to discharge her cargo, or the destination of the steamer remains open, i. e. not given at the time when the vessel is chartered, but will be stated at a later date usually when loading is completed.

In the Cargo Clause the name of the goods to be transported is indicated. Sometimes the goods are enumerated in details, but usually, the common name of goods is given as grain for instance, which includes a large variety of goods.

In the Freight Clause the method of payment of freight is stated clearly. Freight is usually paid per ton delivered, it means that the freight is paid concurrently with the discharge of the cargo. A com­mon stipulation is that the freight is to be paid on right and true delivery of the cargo, but the custom is to pay sums during discharge.

The term Lay Days means the time allowed by the Charter Party for loading and/or discharging of the cargo. There are many methods of stipulation the lay days of the vessel. The most fre­quently used method is to indicate a definite number of working days or weather-working days.

Charter Parties always stipulate for the notice of the readiness of the vessel to load or to discharge. The notice must be given during business hours in the port. When the vessel is delayed beyond the time stipulated in the Charter Party, the charterers must pay the owners demurrage. On the other hand, if loading or discharging operations are completed before the time, the Charter Party provides for the payment of dispatch money. Dispatch money and demurrage are calculated in accordance with the terms agreed upon in the Charter Party, and may differ according to the nature of the cargo shipped, the size of the vessel, and the form of the Charter Party used.

Cancelling Clause means that the owners and charterers have the option of cancelling the Charter Party in the event of war.

In the General Average Clause it is usually stated that General Average shall be settled according to York-Antwerp Rules, 1924.

When the terms and conditions of a Charter Party are agreed, the Charter Party is signed by both parties — the shipowner and charterers.

When goods are shipped, the Master of the ship signs a Bill of Lading, which is a receipt acknowledging the shipment of goods.

The Bill of Lading is not only a receipt for the goods shipped, but also a document of title which means that the holder of the Bill of Lading has the right to the property of goods. When goods are shipped in a ship sailing between definite ports no Charter Party is concluded, and the carriage of goods is undertaken according to the terms and conditions usually printed either on the face, or the back of the Bill of Lading. Most of our imports are carried according to terms expressed in the Bill of Lading.

The chartering of foreign ships forms part of the monopoly of Foreign Trade, and is carried out by SOVFRACHT and controlled by the Ministry of Foreign Trade of the USSR.