Legal Definitions - chartered ship

A chartered ship refers to a vessel that has been leased or hired by one party (the "charterer") from its owner for a specific period, a particular voyage, or for a defined purpose. This arrangement is formalized through a contract known as a "charter party." Essentially, the charterer gains temporary use and operational control of the ship, often for transporting goods, passengers, or performing specialized tasks, without actually owning the vessel.

Here are some examples to illustrate this concept:

• Imagine a large international retail company that needs to transport a significant volume of seasonal merchandise, such as holiday decorations, from a manufacturing hub in Asia to distribution centers in Europe. Instead of owning its own fleet of cargo ships, the company enters into an agreement with a shipping line to lease a container ship for a single voyage. This particular vessel, carrying the retailer's goods under the terms of their agreement, would be considered a chartered ship. The retail company is the charterer, temporarily controlling the use of the ship for its specific shipping needs.

• Consider a group of travel enthusiasts planning a unique, multi-country expedition that requires a specialized vessel capable of navigating both coastal waters and rivers. They approach a company that owns expedition-style cruise ships and arrange to hire one of their smaller vessels for a two-month period, complete with crew and provisions, to follow their custom itinerary. During these two months, that specific expedition ship operates as a chartered ship, exclusively serving the travel group's itinerary as per their agreement with the ship's owner.

• A government agency responsible for marine research requires a vessel equipped with specific sonar and sampling equipment to conduct a deep-sea survey in a remote ocean region for six months. Lacking such a specialized research vessel in its own fleet, the agency contracts with a private marine services company to lease one of their research ships. For the duration of the survey, this vessel functions as a chartered ship, with the government agency acting as the charterer, directing its operations for scientific data collection.