In this section, we will introduce you to the types of ship charters, which include the following, so that you can be informed in choosing the right method:

• Time-based charter
• Voyage-based charter
• without crew charter
• In fact, almost all clauses of a ship charter contract can be changed or its conditions adjusted by agreement of the parties.
• However, in standard conditions, ship charter contracts are divided into several specific models that are the same in nature but differ in some conditions.
• In fact, this type of division of ship charter contracts is more due to the fact that some types of contracts have been considered in the custom between merchants, owners and tenants and have created a type of common contract due to repetition and multiplicity.
• The most important division of ship charter contracts includes the division into ship chartering based on time, ship chartering based on voyage and ship chartering without crew, each of which we will examine below.

Time-based

• A time-based ship charter agreement, as the name suggests, revolves around the duration of the lease.
• In other words, in this type of agreement, the vessel subject to the agreement is leased to the charterer for a specific period of time.
• In time chartering, the ship’s crew continues to operate and is in fact the ship’s services that are allocated to the charterer for a specific period of time, as a result of which the ship owner will still be the ship’s manager.
• In time chartering, the charterer has the right and authority to arrange any number of voyages he needs with the ship between any origin and destination and any route acceptable to the charterer during the validity period of the contract.
• During each voyage, the operational control of the ship is also fully reserved for the charterer.
• Of course, the parties may have arranged conditions in the contract regarding the freedoms and powers of the charterer, but the initial impression is that the charterer has full powers for the duration of the lease agreement.
• The use of time chartering contracts is particularly popular with companies and businesses that provide container shipping services.
• This group obtains ship services through chartering contracts for periods of several years and uses the ship in accordance with their travel plans.

Voyage-based

• In a voyage-based ship chartering contract, the charterer is no longer provided with the ship’s services for a specific period of time, but the ship is provided to the charterer for a specific voyage, the origin, destination and route of which are specified in the contract.
• In voyage-based chartering, the ship is also provided with the crew and, as a result, in this type of contract, the ship’s services are allocated to the charterer.
• However, in this type of contract, it does not matter how long the voyage lasts, but it is essential that the ship completes its journey from the port of origin to the port of destination and, if necessary, at intermediate ports, and the chartering contract will end with the delivery of the consignments at the port of destination.
• Of course, in a chartering contract based on a voyage, the parties can include any additional obligations, rights and benefits in the contract by mutual agreement, and as long as the agreements between them do not conflict with mandatory laws, they will be enforceable between them.
• For example, it is possible that the type of cargo that can be carried in this chartering contract may be limited to specific cases, or the charterer may have undertaken not to transport a specific type of cargo with the ship, or that other points related to the voyage or cargo may be changed or restricted by mutual agreement.

Without crew charter

• The third common type of ship chartering agreement involves the chartering of a ship without a crew.
• In this type of contract, the charterer has complete control over the ship because only the ship and its equipment are at the disposal of the charterer and the owner loses his power of management through the ship’s crew.
• In this type of contract, the ship owner has naturally provided only the ship itself, and the charterer is responsible for providing the other needs of the ship and the costs that each of them entails.
• Bareboat chartering contracts, the main advantage that they have for the charterer, are in eliminating the waiting period for the ship to be built and also reducing the price of the ship to the cost of renting it for a certain period.
• However, the legal and financial responsibilities of the ship, in accordance with the contractual agreements between the parties, mandatory laws, and established custom in such contracts, will remain with the ship owner.
• Another point is that bareboat chartering usually remains in effect for a long time and the contract validity period is set for several to several years, of course, in principle, clauses for terminating the contract in favor of each party are foreseen in the contract.
• without crew chartering is more common for bulk carriers or tankers, and ultimately the technical management of the ship will remain with the owner, but the responsibility for the safety of the ship, as well as its operational management, is transferred to the charterer for the duration of the contract.