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Voyage Charters

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Voyage Charters - All You Need to Know BEFORE You Go (2024)

• Voyage Charters

Voyage Yacht Charters exclusively offers their own brand of catamarans – Voyage catamarans. These well known and highly requested catamarans are great for bareboat charters and crewed yacht charters alike. Voyage Charters is located at Soper’s Hole on West End, Tortola. A tightly knitted and experienced staff, plus the owner on site, results in great reviews and happy clients.

Use the Yacht Search below to research Voyage Charters yacht in Tortola on your own, call to speak with a Charter Expert, or  Request a Quote .

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VOYAGE 480 ELECTRIC Crewed Charters in US Virgin Islands

• 48.0 Length Total
• 4 Cabins Total
• 6 Max. Guests
• Yacht Type: Sailing Catamarans
• Yacht Age: 2018
• Manufacturer: Voyage
• Air Conditioning
• Water Maker

VOYAGE 480 ELECTRIC Crewed Charters in British Virgin Islands

LET IT GO Bareboat Charter in British Virgin Islands

• 6 Cabins Total
• 10 Max. Guests
• Model: VOYAGE 480

AFTERGLOW Bareboat Charter in British Virgin Islands

• Yacht Age: 2017

VOYAGE 480 Crewed Charters in US Virgin Islands

ENDLESS SUMMER Bareboat Charter in British Virgin Islands

SAIL LA VIE Bareboat Charter in British Virgin Islands

VOYAGE 480 Crewed Charters in British Virgin Islands

MOONSTRUCK Bareboat Charter in British Virgin Islands

KNOT BAD Bareboat Charter in British Virgin Islands

• 50.0 Length Total
• 5 Cabins Total
• Yacht Age: 2008
• Model: Voyage 500

OSPREY Bareboat Charter in British Virgin Islands

• 51.9 Length Total
• 11 Max. Guests
• Yacht Age: 2010
• Model: Voyage 520

NO WORRIES Bareboat Charter in British Virgin Islands

• Yacht Age: 2013

NO REGRETS Bareboat Charter in British Virgin Islands

• Yacht Age: 2014

WINDBORNE Bareboat Charter in British Virgin Islands

• Yacht Age: 2015

VOYAGE 520 Crewed Charters in US Virgin Islands

• 52.0 Length Total
• 8 Max. Guests

VOYAGE 520 Crewed Charters in British Virgin Islands

VOYAGE 580 Crewed Charters in US Virgin Islands

• 58.0 Length Total
• Yacht Age: 2006

VOYAGE 580 Crewed Charters in British Virgin Islands

Request confirmation, terms and conditions, charter experts, llc terms & conditions.

PLEASE READ THESE TERMS AND CONDITIONS (“ Terms ”) CAREFULLY AS THEY CONTAIN IMPORTANT INFORMATION REGARDING YOUR LEGAL RIGHTS, REMEDIES AND OBLIGATIONS AS WELL AS A SECTION GOVERNING THE JURISDICTION AND VENUE OF DISPUTES. THESE TERMS ALSO CONTAIN A LEGALLY BINDING RELEASE, WAIVER OF LIABILITY, AND ASSUMPTION OF RISK. By creating a username, a login, clicking submit, using the services of Charter Experts, LLC d/b/a Virgin Island Sailing® (“ Broker ) or by accessing Broker’s website, you agree that you have read, and acknowledge your acceptance of these Terms. The Terms are subject to change at any time without notice at Broker’s sole discretion. Additionally, any transaction for which you have made payment shall be governed by the form of Terms in effect at the time of such payment notwithstanding any subsequent changes hereto.

If you are obtaining a quote, information, booking travel for and/or securing or procuring a Charter (as that term is defined in Section 1 below) for more than just yourself, all references below to “Charterer” or “you” (and derivations thereof) shall be read to mean you on behalf of yourself and each individual within your group for whom you are obtaining a quote, information, booking travel for and/or securing or procuring Charter.

These Terms shall be read together and construed, to the fullest extent possible, to be in concert with any other agreement by or among Broker and Charterer. To the extent they cannot be so construed, then in the event of any direct conflict between these Terms and any other agreement by or among Broker and Charterer (including but not limited to the agreement executed by Charterer for a Charter Reservation (as that term is defined in Section 1 below), these Terms shall prevail.

• Prepaid Charter Reservations . Typically, Broker negotiates charter rates in advance with the yacht owner or charter company (“ Charter Provider ”) to obtain cost-effective rates, and facilitate reservations and availability for yacht charters, excursions and travel (the “ Charter ”). Broker also provides services to you by facilitating the booking of reservations for consideration and receives a commission from the Charter Provider (the “ Broker Fee ”). The Broker Fee is included in the pre-negotiated Charter rate provided to you, plus taxes and other fees where applicable. You agree that your payment is for the total amount set forth in the applicable Charter agreement (which Charter Provider may refer to as a Charter Contract, Charter Agreement, Booking Terms & Conditions, Instructions and Terms for Accommodations, as well as other derivations) provided to you by Broker (“ Charter Agreement ”). Upon execution of the Charter Agreement and receipt of the applicable deposit, you will have made a reservation for the Charter that authorizes Broker to facilitate the Charter on your behalf (“Charter Reservation”), including making payment arrangements with the Charter Provider. You further agree that Broker is a third-party beneficiary to the Charter Agreement and shall have the right to enforce such agreement to the extent it deems such enforcement necessary or advisable to protect its rights hereunder or under the Charter Agreement.

  Broker retains the Broker Fee as compensation in arranging your Charter Reservation. The Broker Fee varies based on the amount and type of Charter and/or services provided by Broker.  By making a Charter Reservation, you accept and agree to the relevant cancellation and no-show policy of the Charter Provider set forth in the Charter Agreement. Cancellation and no-show policies vary for each Charter. Carefully read the Charter Agreement and additional information provided to you by Broker. It is expressly agreed by Charterer that the Broker Fee is earned at the time the Charter Reservation is made. Late payment, wrong credit card or debit card details, invalid credit or debit cards, or insufficient funds are for your own risk and account, and you will not be entitled to any refund of any prepaid amount unless the Charter Provider expressly agrees otherwise under the Charter Agreement or in some other signed writing.

• Charter Rules and Restrictions . Additional terms and agreements will apply to your Charter Reservation and any purchase or rental of equipment or other items, supplies, provisions and travel you may select. Please read those additional terms carefully. In particular, if you have purchased airfare, please ensure that you read the full terms and conditions of carriage issued by the supplier. You agree to abide by the terms of purchase imposed by any supplier with whom you elect to deal, including but not limited to payment of all amounts when due and compliance with the supplier’s rules and restrictions regarding availability, charges, fares, and use of products and services.
• Payment . All payments must be made by personal check, bank/wire transfer, ACH payment and/or with a major credit card unless otherwise expressly stated. The total price for the Charter Reservation will be billed in U.S. Dollars unless otherwise stated. Some banks and credit card companies impose fees for international transactions. If you are making a reservation from outside of the United States on a US credit card, your bank may convert the payment amount to your local currency and charge you a conversion fee. This means the amount listed on your credit or bank card statement may be in your local currency and therefore a different figure than the amount provided by Broker for the Charter Reservation. In addition, a foreign transaction fee may be assessed if the financial institution that issued your credit card is located outside of the United States. Booking international travel may be considered to be an international transaction by the financial institution or card company. The currency exchange rate and foreign transaction fee is determined solely by your financial institution on the day that it processes the transaction. If you have any questions about these fees or the exchange rate applied to your booking, please contact your financial institution. Broker shall not be liable to you for any such service, conversion, or exchange fee.

  Broker expressly reserves the right to cancel your Charter Reservation if full payment is not timely received as set forth in the Charter Agreement.

• Cancellation and Rescheduling . You may cancel or change your Charter Reservation as set forth in the Charter Agreement by and among you, the Charter Provider and/or Broker. Please note that some Charter Providers do not permit changes to or cancellation of reservations after they are made, or after a certain date, as indicated in the Charter Agreement. You agree to abide by the terms of the Charter Agreement with respect to your Charter Reservation. Broker will not be responsible for reimbursing Charterer for any previously tendered deposits or payments by Charterer and disclaims all liability for the failure of a Charter Provider to refund or return any such funds.
• Credit Card Transactions and Chargebacks . If for any reason, any Charter Provider is unable to provide the Charter, or any part thereof, for which you have contracted, your remedy lies against the Charter Provider, and not against Broker. However, Broker will use reasonable efforts to assist you and Charter Provider in reaching a resolution to a dispute between you and the Charter Provider. In the event that your payment has already been transferred from Broker to Charter Provider or to an escrow account, you agree that you will not seek a chargeback against Broker for such amounts transferred. You further agree to indemnify and hold Broker harmless from and against any liability, loss, damage or expense (including without limitation, reasonable attorneys’ fees) that Broker may incur in connection with chargebacks against Broker or under the Charter Agreement and your performance thereunder. If Broker incurs any costs, including but not limited to attorneys’ fees, to recover any payments charged back by your credit card company or other financial institution, you agree that you will be liable for these costs. If your payment is declined for any reason, you agree to settle any amounts owed to Broker via money order, cashier’s check, personal check or bank/ACH transfer immediately.
• Broker Responsibility . Broker makes arrangements with the Charter Provider. Broker additionally makes additional arrangements with other suppliers for the various components and other services that comprise your Charter (“Charter Suppliers”). Broker is not an agent of these Charter Providers or the Charter Suppliers (and the Charter Providers and Charter Suppliers are not agents of Broker). Broker expressly disclaims any liability for the actions or omissions of the Charter Provider and the Charter Suppliers. The Charter Providers and the Charter Suppliers reserve the right to refuse service to you at their sole discretion. Broker assumes no liability for the acts of the Charter Provider or the Charter Suppliers in refusing service. Broker is not responsible for schedule changes and does not offer compensation for those changes. Broker is not responsible under any circumstances for any injury or damages you may suffer, in connection with sea, air or ground transportation, hotel accommodations, or other travel or excursion services arranged by Broker.

  You understand Broker is not the source or supplier of the Charter or other travel services you requested and acts solely as a broker for the Charter Provider and the Charter Suppliers. You agree that the Charter Provider and Charter Suppliers whose names appear in the information supplied to you are those who are solely responsible for providing the Charter you purchase. You consent to and request the use of the Charter Provider and the Charter Suppliers and agree to not hold Broker responsible should any of them: (i) fail to provide the Charter or travel services you purchased, whether or not such services are listed in the Charter Agreement or otherwise, (ii) fail to comply with any applicable law, or (iii) engage in any negligent act or omission that causes you any sort of injury, damage, delay or inconvenience.

By using Broker’s services, you waive and release any claim against Broker, its affiliated and subsidiary companies, and their respective officers, directors, employees, contractors, and agents, arising out of or in connection with any loss of or damage to property or injury to any person caused by reason of (i) any defect, negligence, or other wrongful act or omission, or any failure of performance of any kind, by any Charter Provider, Charter Suppliers, or any other provider of sea, airline, hotel, ground transportation or any other travel provider connected to or otherwise associated with the Charter, (ii) any claim for inconvenience, loss of enjoyment, mental distress or other similar claim, (iii) any delayed departure, missed connection, substitute accommodation, termination of service or change in fares or rates, and (iv) overbooking, flight or other travel cancellation, lost or misconnected personal property, or any claim arising out of the air transportation portion of your travel, and (v) or any other claim arising out of or otherwise related to the Charter Agreement or services provided by the Charter Provider and the Charter Suppliers.

Excepting only liability that directly arises from the gross negligence or willful misconduct of Broker, you will not hold Broker responsible for any injury, damage or loss you may suffer while on a Charter, whether incurred on the Charter or in connection with any other rental, purchase, excursion or activity, regardless of the relationship of any of the foregoing with the Charter Provider or the Charter Suppliers.

• Your Responsibility . By booking a Charter with Broker, you agree to defend and indemnify and hold harmless Broker, Charter Provider, Charter Suppliers, and each of their respective officers, directors, employees and agents, from and against any and all claims, causes of action, demands, recoveries, losses, damages, fines, penalties or other costs or expenses of any kind or nature, including but not limited to reasonable legal fees, arising out of or in connection with: (i) your breach of these Terms or the documents referenced herein; (ii) your violation of any law or rights of a third party; or (iii) your use of the Broker website.

You will review your Charter Agreement and travel documents for accuracy upon receipt. You understand that it is your responsibility to review the accuracy of all details in the Charter Reservation provided to you, and that you may contact Broker if you have any questions.

You assume full and complete responsibility for checking and verifying any and all passport, visa, vaccination, or other entry requirements of your destination(s), and all conditions regarding health, safety, security, political stability, and labor or civil unrest at such destination(s).

You understand that Broker recommends purchasing travel insurance to cover certain risks inherent in travel such as supplier bankruptcy and the inability to travel due to a medical or personal emergency.

• No Warranties . All Charters, products, services, advice and information is provided on an “as is” and “as available” basis without warranties of any kind, either expressed or implied to the fullest extent permitted under the law, including but not limited to, warranties of title or implied warranties of merchantability, satisfactory quality or fitness for a particular purpose. Without limiting the above, no warranty or guarantee is made (i) regarding the acceptance of any reservation request or Charter Reservation; (ii) regarding the availability of Charters, or any other product and/or services through Broker; (iii) that the use of Broker’s website will be error-free; or (iv) regarding the completeness, accuracy, reliability or quality of any information, content, data, service, advice or merchandise provided by Broker or through Broker’s website.

Broker has no special knowledge regarding the Charter Provider’s or Charter Supplier’s financial condition, unsafe conditions, health hazards, weather hazards, or climate extremes at locations to which you may travel during or otherwise in connection with your Charter.

• Limitation on Liability . In no event shall Broker, Charter Provider, Charter Suppliers, and/or their respective affiliates, or any employees, agents, officers, directors, members or managers of any of the foregoing (“Broker and Charter Releasees”), be liable for any direct, indirect, punitive, incidental, special or consequential damages arising out of, or in any way connected with, your access to, display of or use the Broker’s website, the Charter or services provided to you in connection with the Charter (including, but not limited to, your reliance upon opinions of the Broker), whether based on a theory of negligence, contract, tort, strict liability, consumer protection statutes, or otherwise, and even if Broker and/or any other of the Broker and Charter Releasees have been advised of the possibility of such damages.

If, despite the limitation above, Broker or the Broker and Charter Releasees are found liable for any loss or damage which arises out of or in any way connected with any of the occurrences described above, then Broker, Charter Provider, Charter Supplier and the Broker and Charter Releasees will in no event exceed, in the aggregate, the greater of (a) the Broker Fee, and (b) One-Hundred Dollars (US $100.00).

The foregoing limitation of liability reflects the allocation of risk between the parties. The limitations specified in this section will survive and apply even if any limited remedy specified in these Terms is found to have failed of its essential purpose. The limitations of liability provided in these Terms inure to the benefit of Broker and/or its providers.

The foregoing does not affect any liability which cannot be excluded or limited under applicable law.

• Limitation on Time to File Claims . ANY CAUSE OF ACTION OR CLAIM YOU MAY HAVE ARISING OUT OF RELATING TO BROKER’S SERVICES OR THE WEBSITE MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES, OTHERWISE, SUCH CAUSE OF ACTION OR CLAIM IS PERMANENTLY BARRED.
• Waiver . No waiver by Broker of any term or condition set forth in these Terms shall be deemed a further or continuing waiver of such term or condition or a waiver of any other term or condition, and any failure of the Broker to assert a right or provision under these Terms shall not constitute a waiver of such right or provision.
• Severability . If any provision of these Terms is held by a court or other tribunal of competent jurisdiction to be invalid, illegal or unenforceable for any reason, such provision shall be eliminated or limited to the minimum extent such that the remaining provisions of the Terms will continue in full force and effect.
• Governing Law and Mandatory Venue . The laws of the State of Florida govern the rights and obligations of the parties to this Agreement and the interpretation, construction and enforceability thereof. You agree that any action or proceeding initiated by Charterer against Broker shall be brought solely in the federal and state courts of Hillsborough County, Florida, and you submit to the jurisdiction of those courts and waive any objections to the exercise of personal jurisdiction over you by those courts. In the event any action or proceeding is initiated by Charterer in a court outside of Hillsborough County, Florida, Charterer agrees to pay Broker’s costs and reasonable attorneys’ fees associated with defending such action or proceeding and waives any and all defenses to the transfer of said action or proceeding, whether jurisdictional or otherwise, to a federal or state court in Hillsborough County, Florida.

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Voyage Charter : Definition & Full Guide

• By MascotMaritime
• April 22, 2022
• 3 mins read

Table of Contents

What is a voyage charter.

Voyage charter definition : The voyage charter is a contract (voyage charter party) between the shipowner and the charterer wherein the shipowner agrees to transport a given quantity of a shipment, using a pre-nominated vessel for a single voyage from a nominated port (say X) to a nominated port (say Y), within a given time period.

Who is a voyage charterer? What is the freight & voyage charter party? 

The person who charters the vessel is called the voyage charterer , the payment is called freight & the contract is called the voyage charter party. The freight rate is calculated as $/tonne of shipment. 

What is the most significant part of a voyage charter party?

The most significant parts are the description of the voyage, size & capacity of the vessel, cargo, the allocation of duties and costs in connection with loading and discharging, the specification of the freight, and the payment of the freight, the laytime rules, the allocation of the liability for the cargo and the allocation of other costs and risks.

Depending on the circumstances, other questions and clauses can be very important in the negotiations between the owners and the charterers.

In this type of charter, the vessel must be in the position that the owner specified when the charter was concluded & the vessel must, without undue delay, be directed to the port of loading.

At the port of loading, the charterer must deliver the agreed cargo. 

The cargo must not be dangerous cargo unless otherwise agreed. The cargo must be brought alongside the ship at the loading port & must be collected from the ship side at the port of discharge.

Mainly with the bulk cargoes, the charterer often undertakes to pay to load and discharge & often clauses of f.i.o or f.o.b are met. Very often parties agree on f.i.o.s or f.i.o.s.t terms.

In voyage charter, the discharge port need not be nominated in the charter party & in such cases, the charterer must have the right later to direct the vessel within a certain range to a specific port of discharge.

In a voyage charter where the charterer carries out loading &(or) discharging, it is generally agreed that the charterer will have a certain period of time at his disposal for loading & discharging of the vessel & it is called laytime .

If the charterer fails to load and(or) discharge the cargo from the vessel within the laytime, then he has to pay compensation for the extra time used called demurrage . Once in demurrage always in demurrage.

In other cases, if the charterer loads &(or) discharges the cargo from the vessel more quickly than the agreed laytime time, then he is entitled to claim compensation (only if agreed earlier) called despatch money.

In voyage charter, unless lumpsum freight is paid, the owner may claim freight compensation if less cargo is delivered, or cargo is delivered in such a way that ship’s capacity cannot be utilized due to broken stowage . This freight compensation is called deadfreight .

Voyage charter party agreement example:

Click here to see the example of a voyage charter party (NORGRAIN 73).

What are the factors which influence the freight rate in a voyage charter market?

In the voyage charter market, rates are influenced by cargo the charterer must deliver the agreed cargo size, commodity, port dues, and canal transit fees, as well as delivery and redelivery regions.

In general, a larger cargo size is quoted at a lower rate per tonne than a smaller cargo size. Routes with costly ports or canals generally command higher rates than routes with low port dues and no canals to transit.

Voyages with a load port within a region that includes ports where vessels usually discharge cargo or a discharge port within a region with ports where vessels load cargo also are generally quoted at lower rates because such voyages generally increase vessel utilization by reducing the unloaded portion (or ballast leg) that is included in the calculation of the return charter to a loading area.

What are the costs paid by the shipowner & charterer in a voyage charter?

In a voyage charter, the shipowner retains the operational control of the vessel and pays all the operating costs (crew, fuel, freshwater, lubes, port charges, extra insurances, taxes, etc.), with the possible exclusion of the loading/unloading expenses. 

The charterer’s costs are usually costs & charges relating to the cargo.

What are the types of voyage charter?

It can be of the following types:

• Immediate  –  which is carried out within weeks of the contract agreement and the agreed freight rate is called the spot rate.
• Forward –  which is scheduled & fulfilled at the agreed time in the future, for example in say three months.
• Consecutive – which refers to several same consecutive voyages.

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Voyage Charter vs Time Charter

Ships, boats and other recreational vessels are owned by a large number of individuals who often purchase them as assets. They do not use these vessels for shipping goods or for ferrying passengers.

Instead, they often lend them out to third party organizations who use them for a variety of purposes. In maritime legal terms, this lending process is known as chartering. Chartering is an important concept of the global maritime trade sector, and is of different types.

This article will delve into the differences between two specific categories of charters – the voyage charter and the time charter.

What is a Charter?

A charter is an agreement between two or more groups known as charter parties, regarding the leasing of a vessel for a fixed set of conditions. The terms and conditions stipulated in the charter are binding on all the parties in the agreement and covers a wide variety of clauses and possible scenarios that may arise. It is considered to be an official document in legal aspects and is required by Admiralty Law to be drawn up in case of any form of vessel hiring or leasing.

A shipowner is the first party in the charter agreement who owns the vessel under consideration. The charterer is an individual or organization who is in need of a ship.

The charterer may have cargo that he wishes to transport, or may further lease out the vessel to third parties.

The shipbroker is a link between ship owners and charterers, and aids in finalizing the terms of the agreement. The terms of the agreement include the duration of leasing, fees, payment instalments, regulations on usage, and detailed surveyor reports on the condition of the ship.

Payment is termed as a freight rate and is remitted to the shipowner at fixed intervals decided in the agreement.

Surveyor reports are important in chartering, as they ensure that the vessel is seaworthy prior to being chartered. Similarly, on completion of a charter agreement, and before final payment formalities, another survey report is conducted to ensure that the vessel has sustained no damage during the lease period.

The charter agreement lays down the responsibilities of each group and stipulates the condition in which the vessel is to be maintained.

There are three main types of charters – voyage charter, time charter, and demise charter.

The demise charter is often known as a bareboat charter, and grants ownership or possession of the vessel to the charterer subject to certain time-bound conditions.

Terms and Features of a Voyage Charter

A voyage charter is a type of charter in which a vessel is leased out for a particular voyage. The charter agreement lists the ports of call, destination, and restrictions on cargo, if any.

Most voyage charters are undertaken by charterers who have cargo that needs to be shipped. For this, they contact ship owners through brokers and arrange a ship for a particular voyage.

Payment of voyage charters can be done in two methods – on a per-ton basis, or on a lump-sum basis .

The per-ton basis involves paying the owner for every ton of cargo or freight transported on the vessel. This is preferred when the cargo tonnage is considerably lower than the gross maximum cargo tonnage of the vessel.

On the other hand, when a higher weight of the cargo is carried, it is advisable to pay on a lump-sum basis . The shipowner must ensure that the tonnage carried on board the vessel is within the acceptable limits of the ship. This includes checking the tonnage of on-deck cargo, and the various load lines of the vessel.

There are some important terms used in a contract agreement, that lays out the time-based rules to be followed for the duration of the contract.

Laytime refers to the time that a charterer is allowed to complete the loading and unloading process at a port of call. Since the owner pays duties and berthing charges at the port, they expect the charterer to hasten the process.

In case the charterer exceeds the laytime laid out in the contract, he is obliged to pay a penalty known as demurrage . This covers the extra costs incurred by the shipowner owing to the delay by the charterer.

On the other hand, if the ship is able to complete the loading and unloading operations before the stipulated time, the charterer can claim payment of a despatch from the owner. This is often seen as an incentive for charterers to complete the port operations as soon as possible.

In voyage chartering, the shipowner undertakes payment of fuel, operation, and employment-related costs. It is their responsibility to hire the officers and other crew members for the voyage either from a pool of individuals working for them, or using brokers as middlemen to source mariners and seafarers.

In addition, the owner must also pay costs such as berthing and loading operations. Any equipment used must also be paid for by the owners.

To recoup these costs, the owners charge a higher rate from the charterer. In general, charterers transporting a one-off consignment prefer voyage charters despite the high cost. This is because they are not tied down to the contract for a long period of time.

Simply put, a voyage charter involves a charterer hiring a vessel for the purpose of a single voyage, in which the route and ports have been pre-determined. The responsibility of duty and other payments along with recruitment is handled completely by the shipowner, while the cargo is the sole responsibility of the charterer.

Terms and Features of a Time Charter

A time charter is a time-bound agreement, as opposed to a voyage charter. The shipowner leases a vessel to a charterer for a fixed period of time, and they are free to sail to any port and transport any cargo, subject to legal regulations.

Although the charterer controls the ship, the maintenance of the vessel still falls under the purview of the owner. They are responsible for ensuring that the vessel meets internationally accepted maritime standards, throughout the course of the agreement. They regularly employ marine surveyors to prepare reports on the seaworthiness of the vessel and make repairs as and when required. The owner will face legal action in case the vessel is found to have some major problem.

The time charter agreement can span anywhere from a few days to a few years. This is a long-term agreement that works on a single rate of payment known as the freight rate.

Payment is to be remitted every quarter and does not fluctuate under ordinary circumstances.

In time chartering, the charterer is responsible for selecting a crew, paying charges that arise during the voyages, and arranging for provisions to ensure smooth operations at every port of call. They must intimate the planned route to the owners in advance. The payment is calculated on a per-day basis, with penalties added at a later time. The cost of fuel, provisions etc. are to be covered by the charterer, while the owner will handle all maintenance-related costs.

The charterer often does not sail on the vessel and provide instructions to the master of the vessel in their stead. This includes permissible cargo, route and ports, required charter speed etc.

Unlike voyage charters that use a rigid payment calculation, there are several provisions for unforeseen delays in time charters.

Since payment is on a daily basis, the charterer may be delayed for a certain reason, and these are covered in the agreement.

Time not included in the final payment is known as off-hire hours . For instance, if a vessel is slowed down because of poor weather that could not have been predicted, the extra time spent is not included in the final time count.

Similarly, if some form of damage occurs and repairs need to be carried out, the duration is considered to be off-hire . Certain clauses can be inserted in the agreement, that allows for a fixed number of off-hire hours. Beyond this, the charterer is charged for delays.

Briefly put, a time charter involves leasing a vessel for a fixed period, on a per-day rate, where the charterer is free to use the vessel. The owner only looks after maintenance-related cost.

Clauses are inserted to protect the charterer from having to pay for hours that were spent due to events that could not have been foreseen.

How to Choose a Charter Type

Voyage and time charters are very different, in their intended use and service conditions. Knowing when to choose each type of charter can go a long way in meeting expectations of the charterer and shipowner.

A voyage charter is preferred in cases where the charterer only needs the vessel for specific voyages that may arise for different reasons. This could be the case when there is an occasional cargo to transfer.

An occasional cargo commonly springs up during sudden surges in demand, when the supply services are down. Thus, companies that may deal in other commodities may enter the cargo industry for that period of time, in order to make a profit.

This can also happen when the charterer has already pressed into service their own fleet of vessels, which forces them to hire a ship from a third party so that they may undertake a single voyage.

Voyage chartering can be tricky for inexperienced charterers, since the matter of the crew and equipment must be handled correctly.

Most owners make arrangements to look after these requirements, but it is mostly based on goodwill. Having a shipbroker negotiate the terms can be very helpful in ensuring that the occasional charterer is not inconvenienced by having a ship without a crew to man it.

A time charter is more commonly used by more experienced chartering firms when there is a long-term requirement for a vessel. Instead of having to specify the ports and routes undertaken by the vessel in the charter agreement, the charterer simply hires the boat for a fixed period of time and takes complete control over the vessel in all but name.

As they are free to sail to any destination with any group of crew and officers, it is beneficial to companies that already deal in shipping. For instance, if a ship is decommissioned or is sent in for repairs, the company needs to be able to procure a vessel for the duration of that period.

Instead of having to book a ship every time they wish to undertake a voyage, they use time charters. Thus, for the duration of the agreement, they will have possession of the vessel and are free to use it, within the purview of the law. This is especially useful since such a charterer will often already have a crew ready to take over the hired vessel.

Another major factor that sways the decision to pick either a voyage or time charter is the finances of the shipping industry. Voyage chartering is considered to be a volatile market since there is no assurance of leasing a boat on completion of an existing contract. Since it is only applicable for a single voyage, the overall volatility of the voyage charter is high.

However, charterers prefer voyage charters for the reason that they can always get a more competent rate from other ship owners. In other words, the owners are at the mercy of the chartering sector.

So, most ship owners prefer time charters, as it guarantees financial returns for a fixed period of time, at a fixed rate. This offers some protection against rapid fluctuation of the chartering rates. However, charterers do not prefer this contract, as it ties them down at a single rate for an extended period.

A one-off charterer always goes for a voyage charter, while a regular charterer prefers time charters. Shipowners are often directly approached by charterers, instead of having marine brokers. Thus, one must have an overall look at various factors influencing the shipping sector, prior to choosing between a voyage and time charter.

Overall Comparison

Table of responsibilities.

You may also like to read –

• 8 Main Factors that Affect Ocean Freight Rates
• What is the Difference between Lay days and Lay time?

Disclaimer:  The authors’ views expressed in this article do not necessarily reflect the views of Marine Insight.  Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Marine Insight do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader.

The article or images cannot be reproduced, copied, shared or used in any form without the permission of the author and Marine Insight.

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About Author

Ajay Menon is a graduate of the Indian Institute of Technology, Kharagpur, with an integrated major in Ocean Engineering and Naval Architecture. Besides writing, he balances chess and works out tunes on his keyboard during his free time.

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Great article that provides lots of fundamental knowledge! Kudos to the author, thank you!

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My family and I sailed with a group of 7 other friends for a week on the catamaran, Sol Liv, captained by James along with Robyn who was also the chef. We had an amazing vacation. James and Robyn are great people. They know the BVIs wel ... more

December 2, 2022

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May 9, 2022

Eden Fletcher

Denzie and Ryan were absolutely amazing on our trip on the Sol Liv! Truly couldn’t have asked for a better trip between Ryan’s guidance on activities on the islands and denzie’s incredible meals. We are hoping to return as soon as we ca ... more

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November 17, 2022

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December 26, 2022

Great time with Tate and Justine. We just finished our charter with Tate (captain) and Justine (chef). If was a great vacation with Tate and Justine. They were extremely nice and helped us decide on what plans to make each day. Tate was ... more

December 20, 2022

May 1, 2022

My family and I sailed with a group of 7 other friends for a week on the catamaran, Sol Liv, captained by James along with Robyn who was also the chef. We had an amazing vacation. James and Robyn are great people. They know the BVIs well and took us to so many beautiful spots. Plus, Robyn is a very talented chef. Our vacation was truly relaxing with James and Robyn in charge of all the details. The boat is amazing as well. Truly a floating hotel. We will be talking about this vacation for the rest of our lives.

Best vacation experience ever! Shawn was incredible with the booking process and answered all our crazy questions along the way promptly! Tony & Claudia made our trip truly special. They couldn't have been more accommodating to our group. The food was absolutely fabulous and exceeded our expectations. They were kind, gracious hosts who anticipated our every need. They served with a smile and are a terrific team. They felt like family by the end of the week. We will come back only if we can sail with Tony & Claudia again!

Spectacular once-in-a-lifetime vacation with Voyage Charters and Captain Chris & Chef Jena. Voyage emerged as the clear leader after looking at several charter companies in the area, and were well worth the slight extra expense. Our 59' cat, Miles Away, was immaculate and comfortable, with far more than enough space for our three families. We had considered going without the captain and chef, and were so glad we didn't -- Chris showed us so much more of the islands than we would've been able to attempt ourselves, and made the entire thing effortless and 100% stress-free. His local knowledge (he grew up there) was a bonus. And Jena's meals were impeccable. She not only easily adapted to some special requests we had, but made a birthday breakfast for my daughter. Everything she cooked was tasty and creative, and she was both professional and fun to be around. We all miss them both & wish them the best!

Regarding our trip on 'Sol Liv' in May, 2022, we had a wonderful time with Capt. Tony Cook and his lovely wife Claudia. They took care of our every need and blended in immediately with our group of twelve. All of us were thrilled with the exceptional level of care. Captain Tony coached, bartended, entertained and dozens of other tasks with an eye on customer service. He clearly loves his wife. Claudia had delicious and creative meals and abundant midday treats for us. She made special dishes for dietary concerns. She is the quiet center in the swirl of activity around the boat. They are wonderful people and we were fortunate to spend time with them. Certainly one of our best trips to the islands!

Our vacation booked with Voyage Charters was truly an amazing experience. The vessel, Out of Office, was impeccably clean and well appointed. The bedrooms were cocoon-like ( I swear I haven't slept that well since before having children ), the linens were wonderful too. If you are booking a trip be sure to request Captain Blade and First Mate, Chef and DJ Jena! Given the circumstances there was no doubt that we were going to have a good time. However, with these two as our crew our experience was greatly enhanced. I appreciate their knowledge, professionalism and most off all their wit and candor. Thank you Blade for taking us to such beautiful locations and thank you Jena for taking 11 people on a delightful epicurean adventure 3 times a day!

Captain James Smyly and Robyn Ellor chef extraordinaire accompanied us on No Regrets. We will never, ever forget this incredible trip. From the scenic sails to the five star meals shipped up by Chef Robyn, we couldn’t have asked for a better team to help us have the best vacation ever. They planned a fantastic, found us the best mooring spots, had tons of insider island knowledge, and were just all around the best. Thanks James and Robyn and Voyage!

Denzie and Ryan were absolutely amazing on our trip on the Sol Liv! Truly couldn’t have asked for a better trip between Ryan’s guidance on activities on the islands and denzie’s incredible meals. We are hoping to return as soon as we can and definitely hope to get them on our boat again too!

Congratulations on a superb rebuild! We had a splendid week on Secret Oasis with old and new friends, and the best crew ever. My 7th charter, and it was perfect. Tony and Claudia made the trip wonderful, and as always, I will recommend Voyage for the charter or charters of a lifetime.

We just returned from an 11-guest 6-night BVI trip on the 65’ powercat “Out of Office” (Voyage Charters out of Soper's Hole in Tortola). Our captain was Blade Goodall and our chef was Nia Mora. We have done these trips before and Captain Blade and Chef Nia were by far the best we have ever had. Captain Blade was engaging, knowledgeable, funny, and flexible. We made a number of adjustments to our trip on the fly and he was very accommodating. All of the pre-planned excursion details (Mokes and dinner reservations on Anegada, scuba diving at Virgin Gorda, etc.) were perfect. The unscheduled impromptu activities (e-foils at Virgin Gorda, snorkeling, tubing, water skiing, fishing, bar hopping, etc.) were amazing and Captain Blade always took the time to ensure everyone was having fun. Chef Nia was creative, engaging, and highly talented. Every meal was fantastic and our group of 11 never went hungry! One of the highlights was Chef Nia preparing the 50-pound King Mackerel that Captain Blade helped us catch on the crossing from Anegada to Jost Van Dyke. With zero notice, Chef Nia cancelled her previously planned dinner and prepared an incredible fresh fish dinner complete with homemade teriyaki sauce, watermelon salsa, and perfect rice. This was a lot more work for her but she did it with a smile! Both Captain Blade and Chef Nia worked hard from sunrise to well after sunset each day ensuring that the trip was perfect for all 11 of our guests. We all had tears in our eyes when we said goodbye to them but will definitely request them on a future trip!

Great time with Tate and Justine. We just finished our charter with Tate (captain) and Justine (chef). If was a great vacation with Tate and Justine. They were extremely nice and helped us decide on what plans to make each day. Tate was extremely knowledgeable of the boat and the islands. He grew up in Jost Van Dyke and was able to give us good advice on what to do. My husband liked that Tate was always calm. Justine was a fantastic chef. She made sure our food met the information we provided ahead of time. Every meal was well thought out and delicious. Thank you both for a wonderful experience. The Voyage 520 boat was very nice. I would suggest maybe a couple more bean bags up front for people to lay when the boat is at sail.

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