Legal Definition and Related Resources of Charterparty

(Carta partita, a deed cut in two.) A written agreement by which a shipowner lets an entire ship, or a part of it, to a merchant for the conveyance of goods, binding himself to transport them to a particular place for a sum of money which the merchant undertakes to pay as freight for their carriage. The principal stipulations refer to the places of loading and delivery, the, mode and time of paying the freight, the number of laying days (that is, the time allowed the freighter for loading and unloading), and the rate of demurrage (q.v.)
The charterparty may operate as a demise or lease of the ship itself with or without the services of the master and crew. The charterer then becomes for the time the owner of the vessel, and the master and crew become his agents or servants. The test is, ” Has the owner parted for the time with the whole possession and control of the ships” (Lord Esher in Baumvoll v. Gilchrist, [1893] A. C. 8.)

Browse or run a search for Charterparty in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Charterparty in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Charterparty in Historical Law in the Encyclopedia of Law.

For more information about Historical Law definitions, see Historical Definitions in the Encyclopedia of Law. For more information about Historical Law Books and Legal Documents, see Legal Encyclopedia of Historical Books and Documents and Legal Encyclopedia of Books and Documents of the 20th Century.

Search for legal acronyms and/or abbreviations containing Charterparty in the Legal Abbreviations and Acronyms Dictionary.

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English Legal System: Charterparty

In the context of the English law, A Dictionary of Law provides the following legal concept of Charterparty :

A written contract by which a person (the charterer) hires from a shipowner, in return for the payment of freight, the use of his ship or part of it for the carriage of goods by sea. The hiring may be either for a specified period (a time charter) or for a specified voyage or voyages (a voyage charter), and the charterer may hire the ship for carrying either his own goods alone or the goods of a number of shippers, who mayor may not include himself. A special but now rare type of charterparty is the charter by demise. It is analogous to a lease of land and gives the charterer full possession and control of the ship. The normal charterparty is a simple charter, under which the shipowner retains possession and control and the primary rights of the charterer are confined to placing goods on board and choosing the ports of call. A number of standard forms (known by codenames such as Austwheat and Shelltime) have been developed for use in particular trades.

See also bill of lading; cesser clause.

Voyage Charterparty Laytime Interpretation Rules 1993 (“Voylayrules 93”) in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Voyage Charterparty Laytime Interpretation Rules 1993 (“Voylayrules 93”), produced by Tetley, in the context of admiralty law: (prepared jointly with BIMCO, FONASBA and Intercargo) (see text in John Schofield, Laytime and Demurrage, 5 Ed., LLP, London, 2004, (see this legal term in this law dictionary), Appendix). Voylayrules 93 superseded the Charterparty Laytime Definitions 1980 (see CMI, (see this legal term in this law dictionary)).

Charterparty in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Charterparty, produced by Tetley, in the context of admiralty law: [Translation of Charterparty in French:”charte-partie”] [Translation of Charterparty in Spanish: “fletamento”] [Translation of Charterparty in Italian: “noleggio”] [Translation of Charterparty in German: “Chartervertrag”] – A charterparty is a contract of lease of a ship in whole or in part for a long or short period of time or for a particular voyage. It has been said that its origin lies in the mediaeval Latin “carta partita” or “charta partita” or “charta divisa”, where an agreement was torn into two pieces and one half was given to each party. Proof of the whole contract was no doubt difficult if one party was obstinate – modern methods of photocopying the contract for each party seem preferable. A charterparty is part contract of hire (affreightment (see this maritime law term in this legal dictionary)) and part contract of transport (carriage). The proportion of “affreightment” decreases as one moves from a demise charter, to a time charter and then to a voyage charter, while the proportion of “carriage” increases from a demise charter through a time charter to a voyage charter. Affreightment is essentially placing a ship at the disposal of another party, while transport is essentially the carrier (see this maritime law term in this legal dictionary) taking charge of goods. Hire (see this maritime law term in this legal dictionary) is the consideration paid under demise and time charterparties; freight (see this maritime law term in this legal dictionary) is the consideration paid under voyage charterparties and bills of lading (see this maritime law term in this legal dictionary).

a) Charterparty by demise [Translation of Charterparty in French: “contrat d’affrètement coque-nue”] [Translation of Charterparty in Spanish: “fletamento (arrendamiento) con cesión de la gestión náutica”] [Translation of Charterparty in Italian: “noleggio con cessione della gestione nautica”] [Translation of Charterparty in German: “Chartervertrag für ein Schiff ohne Besatzung”] – A charterparty by demise is a contract by which the lessor (shipowner) places a ship in the hands of the lessee (the demise charterer) who assumes possession and control. The consideration paid by the charterer is “hire” (see this maritime law term in this legal dictionary), which is payable at specified intervals during the term of the charter. Under a demise charterparty, the shipowner appoints the master and the crew, although they are paid and controlled by the demise charterer. See Tetley, Int’l. M. & A. L., 2003 at pp. 160-172.

A bareboat charter (also sometimes called a “net charter”) is a demise charter whereby the bareboat charterer names, pays and controls the master and the crew. See Tetley, Int’l C. of L., 1994 at pp. 249-250.

Among the most common forms of demise charter are the “Baltic and International Maritime Council Standard Bareboat Charter” (Code Name: “Barecon ’89”); and the “BIMCO Standard Charter” (Code Name: “Barecon 2001″) forms of BIMCO and the SHELLDEMISE form of demise charterparty. Barecon 2001 is reproduced in Tetley, Int’l M. & A. L., 2003, Appendix ”
U” at pp. 887-898.

b) Consecutive voyage charter [Translation of Charterparty in French: “contrat d’affrètement pour voyages successifs”] [Translation of Charterparty in Spanish: “fletamento por viajes consecutivos”] [Translation of Charterparty in Italian: “noleggio per viaggi consecutivi”] [Translation of Charterparty in German: “Fortlaufende Reisecharter”] – A consecutive voyage charter party is a voyage charterparty for a determined number of consecutive voyages.

c) Slot charter – A charterparty whereby the shipper (see this maritime law term in this legal dictionary) leases one or more “slots,” each capable of holding a 20-foot container, aboard a container ship.

d) Space charter [Translation of Charterparty in French: “contrat de tonnage”] [Translation of Charterparty in Spanish: “COA”] [Translation of Charterparty in Italian: “contratto di trasporto di carico parziale”] [Translation of Charterparty in German: “Raumchartervertrag”] – A space charter, or a “contrat de tonnage” as it is known in French (sometimes confusingly called a “contract of affreightment” (COA) in English), depends, like any contract, on its terms. It can resemble a charterparty (i.e. a lease of a ship or ships) or a contract of carriage. It is a contract whereby a capacity of carriage is put at the disposal of the shipper (see this maritime law term in this legal dictionary) for the carriage of his goods during a period of time under particular terms and conditions. Whether it is a contract of hire or a contract of carriage or even a contract of agency like a freight forwarder’s (see this maritime law term in this legal dictionary) contract, depends on its terms. (For charterparties under law, Tetley, Int’l. C. of L., 1994 at pp. 247-252).

e) Time charterparty [Translation of Charterparty in French: “contrat d’affrètement à temps”] [Translation of Charterparty in Spanish: “contrato de fletamento por tiempo”] [Translation of Charterparty in Italian: “noleggio a tempo”] [Translation of Charterparty in German: “Zeitchartervertrag”] – A time charterparty is a contract whereby the lessor (the shipowner or demise charterer) places a fully equipped and manned ship at the disposal of the lessee (the time charterer) for a period of time for a consideration called “hire” (see this maritime law term in this legal dictionary) payable at specified intervals during the term of the charter. Among the most common forms of time charterparty are the New York Produce Exchange (NYPE) and NYPE ’93 forms, issued by the Association of Ship Brokers and Agents (U.S.A.) Inc., the “BIMCO Uniform Time-Charter (As Revised 2001)” (Code Name: “Baltime 1939”) form of BIMCO and SHELLTIME. See NYPE ’93 reproduced in Tetley, Int’l M. & A. L, 2003 Appendix “T”, at pp. 875-886, and Baltime 1939 (Revised 2001), reproduced (ibid.), Appendix “S”, at pp. 869-873. A “time charter for a trip” is a time charter for a particular voyage or voyages, rather than for a period of years, days or months, with hire (see this maritime law term in this legal dictionary) payments made at periodic intervals (as under a time charterparty), rather than “freight” (see this maritime law term in this legal dictionary) being payable, at the completion of the voyage, on the quantity of cargo carried (as under a voyage charterparty). See Tetley, Int’l. M. & A. L., 2003 at pp. 145-159.

f) Voyage charterparty [Translation of Charterparty in French: “contrat d’affrètement au voyage”] [Translation of Charterparty in Spanish: “contrato de fletamento por viaje”] [Translation of Charterparty in Italian: “noleggio a viaggio”] [Translation of Charterparty in German: “Reisechartervertrag”] – A voyage charterparty is a contract whereby the lessor (the shipowner or demise or time charterer) places all or part of the carrying capacity of a ship at the disposal of the lessee (the voyage charterer) for the transport of goods agreed upon, on one or more voyages, for a consideration called “freight” (see this maritime law term in this legal dictionary), based on the quantity of cargo carried and is payable as provided for in the charterparty. Among the most commonly used forms of voyage charterparty are the “Asbatankvoy” form of tanker charter of the Association of Ship Brokers and Agents (U.S.A.) Inc., and the “Baltic and International Maritime Council Uniform General Charter (As Revised 1922, 1976 and 1994)” (Code Name: “Gencon”) form of BIMCO. See Tetley, Int’l. M. & A. L., 2003 at pp. 134-144 and the Gencon form, reproduced (ibid.), Appendix “R” at pp. 865-868. .

Charterparty in Admiralty Law

For information on charterparty in this context, see the entry on charterparty in the maritime law encyclopedia.

Charterparty in Admiralty Law

For information on charterparty in this context, see the entry on charterparty in the maritime law encyclopedia.