Legal Definitions - voyage charter

A voyage charter is a type of contract in maritime law where a shipowner agrees to transport a specific quantity of cargo from one designated port to another for a single, predetermined journey. Under this agreement, the shipowner retains full operational control of the vessel, including its crew, navigation, and maintenance. The party chartering the ship (the "charterer") pays a fixed price, known as freight, for the successful delivery of the cargo. This payment is typically based on the quantity of cargo transported or a lump sum for the entire trip, rather than for the amount of time the ship is used.

Here are some examples to illustrate how a voyage charter works:

• Example 1: Grain Shipment

  A large agricultural company, "Global Grains Inc.," needs to transport 50,000 tons of wheat from a port in Argentina to a port in Egypt. Instead of buying their own ship or hiring a vessel for an extended period, Global Grains Inc. enters into a voyage charter agreement with "Ocean Carriers Ltd." Ocean Carriers Ltd. agrees to use one of their bulk carriers to pick up the wheat in Argentina and deliver it to Egypt. Global Grains Inc. pays a set freight rate per ton of wheat delivered. Ocean Carriers Ltd. remains responsible for the ship's crew, fuel, and all navigational aspects of the journey.

  This illustrates a voyage charter because Global Grains Inc. is contracting for the transport of a specific cargo for a single, defined journey, paying a fixed price for that service, while the shipowner (Ocean Carriers Ltd.) maintains control of the vessel.

• Example 2: Crude Oil Transport

  An oil refinery in Texas, "Lone Star Energy," purchases a large quantity of crude oil from a supplier in Saudi Arabia. To bring the oil to their refinery, Lone Star Energy arranges a voyage charter with "Tanker Fleet Corp." for one of their supertankers. The agreement specifies that the tanker will load the crude oil at a Saudi Arabian port and discharge it at a port near the Texas refinery. Lone Star Energy pays a lump sum for this entire trip, regardless of how long the journey takes, as long as it's completed within a reasonable timeframe. Tanker Fleet Corp. manages all aspects of the ship's operation, including its captain and crew.

  This demonstrates a voyage charter because Lone Star Energy is hiring a vessel for a single, specific transport task (moving crude oil from one port to another) for a predetermined price, without taking on the responsibility of operating the ship itself.

• Example 3: Mineral Ore Delivery

  "Mountain Mining Co." has sold a shipment of iron ore to a steel manufacturer in China. To fulfill this order, Mountain Mining Co. secures a voyage charter with "Global Shipping Lines." The charter party stipulates that a specific vessel will sail to a port in Australia, load 80,000 tons of iron ore, and then transport it directly to the designated port in China. Global Shipping Lines is responsible for ensuring the ship is seaworthy, staffed, and properly navigated throughout the journey. Mountain Mining Co. pays the agreed-upon freight charge upon the successful delivery of the ore.

  This is an example of a voyage charter because Mountain Mining Co. is contracting for the one-time transportation of a specific commodity between two points, with the shipowner retaining full control and responsibility for the vessel's operation during that single trip.