Charter parties:

A charter party is a document of contract by which a shipowner agrees to lease, and the charterer
agrees to hire, a vessel or all the cargo space, or a part of it, on terms and conditions forth in the
charter party. If permitted to do so by the terms of charter party, the charterer may enter into
subcontracts with other shippers.

There are three main types of charter party: time, voyage and demise:

 In a demise (or bareboat) charter, the charterer takes responsibility for the crewing and
maintenance of the ship during the time of the charter. He assumes the legal responsibilities of
the owner, and is known as a disponent owner.
 In a time charter, the vessel is hired for a specific amount of time. The ship-owner manages
the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter
the vessel on a time charter or voyage charter basis.
 In a voyage charter, the charterer hires the vessel for a single voyage, but the ship-owner
provides the master, crew, bunkers and supplies.

A demise charter operates as a long lease of the vessel, with the charterer completely in charge. In
time and voyage charters, the ship-owner still runs the ship, but when in port the charterer becomes
responsible for loading and unloading the ship within the agreed period of laytime. If the charterer
exceeds the allowed laytime, demurrage becomes payable.

In commercial shipping, laytime is the amount of time allowed in a voyage charter for the loading
and unloading of cargo

The term demurrage originated in vessel chartering and referred to the period when the charterer
remained in possession of the vessel after the period normally allowed to load and unload cargo
(laytime). By extension, demurrage refers to the charges that the charterer pays to the ship owner
for its delayed operations of loading/unloading.
Difference between charter party and bill of lading:
Charter party
Charter party is a contract
Contract And Evidence between the ship owner and
shipper about hiring the ship
Charter party is not
Transferable transferable
Charter party is not a
Title To The Goods document which declares the
title of the goods
A charter party is not drawn
Drawn In Sets
in sets
A charter party may be for
Leasing Of Ship
amount to a lease of the ship
A charter party may be for
Particular Destination
the particular voyage
In case of charter party the
Case Of Freight freight is usually paid when
the ship reaches to the port
Bill of Lading
Bill of lading is an evidence
of receiving the goods
A bill of lading can be
transferred by endorsement
and delivery
A bill of lading is a document
which declares the title to the
goods specified
A bill of lading is drawn in
these sets
Such type of intention is not
conveyed in the bill of lading
A bill of lading is related with
the particular destination
The freight is to be paid in
advance, in case of bill of
lading