Sometimes, the preparation of the charterparty indicates a mistake in the negotiating process, and the sooner such mistakes are brought out into the open and reconciled the better for all parties. Therefore, a shipbroker should draft a charterparty as soon as possible following the successful conclusion of a chartering negotiation. In most international businesses, the availability of the charterparty may be vital for trading purposes and the release of LC (Letters of Credit). In coaster shipping, a ship may have loaded, transported the cargo, and discharged, freight may have been settled even before the shipbroker has drawn up the Charterparty (Contractual Agreement).

Therefore, a contract can exist independently.

A charterparty is the Memorandum of the Agreement, the contract itself may be made by word of mouth, telephone, email, or fax exchanges. Generally, all the international and national organizations coordinate their activities through the Documentary Committee of BIMCO (Baltic International Maritime Council).Ī charterparty is a Contractual Agreement that is made between the Shipowner (Disponent Owner) and the Charterer.Ī charterparty documents all the facts of the agreement reached between the Shipowner (Disponent Owner) and the Charterer. BIMCO (Baltic International Maritime Council), ASBA (Association of Shipbrokers and Agents), FONASBA (Federation of National Associations of Ship Brokers & Agents) are active in drafting, and publishing, revising, and updating dry-cargo charterparty forms.įurthermore, some national organizations and private companies have drafted the charterparty forms for their cargoes. Occasionally, new dry-cargo charterparty forms are published and old dry-cargo charterparty forms are revised and updated. Some of the old dry-cargo charterparty forms have been updated to keep in step with contemporary shipping market developments.

Many old dry-cargo charterparty forms have grown unsuitable for the business for which they were initially planned or the business itself has become obsolete, leading to the discontinuation of use of old dry-cargo charterparty forms. Some dry-cargo charterparty forms in use today are almost decades-old. Most specific charterparty forms will have stood the test of time both in practical daily usage and, as essential, in a legal dispute. Usually, specific charterparty forms are used in certain businesses, and a shipbroker should recommend and use these if possible. Shipbrokers should be capable of selecting a suitable charterparty for the business. Shipbrokers should be familiar with the basic layout of voyage charterparty and time charterparty forms.

Charter party editor