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Shipping by chartering is also known as irregular shipping transportation that is another maritime transport means different from transport (liner transport) at regular intervals. It is a basic operation means for cargo transport by signing transport contract or shipping lease contract between leaser and tenants. Leasers provide all or part of cabin of ships to tenants. Specific responsibility, duty, expenses, risks and so on are agreed on shipping contract by the two parties.
The company can undertake international transport services of bulk cargoes such as machinery equipment, steel, cement clinkers and special cargos (yachts, special cars and so forth). It has opened transport lines in Southeast Asia, Middle East, Europe, Africa, South America and North America.
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Characteristics of shipping by chartering
1. It is void of fixed shipping schedules or lines. Transportation can be carried out following the contract.
2. It is applicable to bulk cargo transport such as grain, ore, fertilizer, steel, wood, petroleum, liquefied gas and so forth. Cargoes are not packed or just simply packed.
3. Responsibilities and duties of two parties should entirely follow category and terms in the shipping contract.
4. It has evident charter party in writing.
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Ship lease means
1. Charter by voyage
Charter by voyage mainly includes single trip charter, round trip, continuous trip or round trip shipping lease. In practice, contract of affreightment COA transport exists. It is resembled to continuous trip in form. It is to deliver the agreed cargos to appointed ports.
2. Release at regular intervals
It is a means to lease ships at a regular intervals, i.e., ship owners (leasers of ships) lease the ships to charterers for use within a specified period, during which period the charterers can independently dispatch, run and manage the ships. The lease term can last months or years. The shipping lease means does not draw on voyage number but depend on a time frame agreed in the contract.
Ship lease procedure
Ship lease is carried out in the ship lease market. In the ship lease market, ship owners are the suppliers of ships while tenants are the demanding party for the ship. In the era where communication technology is advanced, most ship lease businesses are negotiated via phone, telex, telegrams, fax or other modern communication means.
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