CONTRACT OF AFFREIGHTMENT

A contract of Affreightment is a deal between a ship-owner and a charterer in which the shipowner promises to deliver a defined number of cargos for the charterer at a set price over a set period of time. The charterer is required under this contract to pay for the shipping regardless of whether the items are ready for shipment or not. The ship-owner provides cargo room for items to be transported on a certain journey or voyages. The freight charges are the fees paid by the charterer.

 The charterer would settle the full price for the freight that is ready to be sent at the agreed-upon time. Even if the items are not available to transport at a particular time as per the schedule, the charterer will pay. The ship-owner is liable for the items carried on board until they are delivered to the stated destination on time. If the cargo products do not arrive at their destination as per the schedule, the ship-owner will be held liable for any penalties incurred as a result of the delay. The shipowner and charterer each have their own duties and privileges under an affreightment contract. Its objective is to place responsibility on the transporter to transmit a particular quantity of goods within the time frame specified in the contract

DUTIES OF SHIP-OWNER

  For a set period of time, the ship-owner will lease a vessel to the charterer. The ship owner is responsible for uploading and managing the cargo entrusted to him in a safe and careful manner.

  The ship owner must follow the authorized directions of the charterer.

  The ship owner is responsible for carrying out the contract, which involves transporting a set amount of items for the charterer over a specified period of time during a given journey.

  The ship owner is responsible for following the directions of the route and monitoring the management, which includes the captain, crew, and the ship. 

 It is the ship owner’s obligation to ensure that the ship is in perfect condition and that the diesel tank is full to reach the destined destination. 

DUTIES OF CHARTERER

  The charterer will be in charge of the vessel’s maintenance and security until the owner takes in charge of the vessel. 

 The charterer is responsible for the rental as well as the freight expenses.

  Only the cargo damages will be held against the charterer. 

 The charterer has the authority to order the ship’s captain to follow the agreed-upon route.

  The charterer is responsible for the cargo from loading to unloading process, as well as being held accountable for cargo damage.