Charter Types

Charter lies at the heart of every commercial shipping decision. Whether you’re an owner fixing a vessel or a charterer moving cargo, understanding how each charter structure allocates cost, risk, and responsibility is crucial. This chapter unpacks the four main charter types, voyage, time, bareboat, and contracts of affreightment, and explores their real-world consequences. We go beyond textbook definitions to examine how each option shapes commercial strategy, risk exposure, and operational control. Readers will gain a clear view of who does what under each structure, from daily operations to legal and financial duties. We’ll also look at how contracts address things like downtime, weather delays, cargo readiness, and port charges. From who pays for fuel to how delays are handled, and from Incoterms to bunker hedging, this chapter gives you the practical framework you need to think like a shipping decision-maker. Knowing your charter type isn’t just about compliance; it’s about control, earnings, and risk.