• When it comes to shipping and the transportation of goods across the ocean, time charter party agreements are essential. These agreements outline the terms and conditions under which a shipowner will lease their vessel to a charterer for a specified period of time. This type of agreement is particularly useful for companies looking to transport goods regularly, as it allows them to secure a vessel for an extended period rather than relying on spot charters.

    If you`re in the process of drafting a time charter party agreement, it`s important to ensure that the document is clear, concise, and comprehensive. To help you get started, we`ve put together an example time charter party agreement template that you can use as a starting point.

    Before we delve in, let`s take a look at some key terms that you should be familiar with:

    – Charterer: The party that leases the vessel for a specified period of time.

    – Owner: The party that owns the vessel being chartered.

    – Hire: The payment made by the charterer to the owner for the use of the vessel.

    – Laytime: The amount of time allowed for loading and unloading cargo.

    – Demurrage: A penalty charge paid by the charterer if they exceed the allowed laytime.

    Now, let`s take a look at our time charter party agreement sample:

    TIME CHARTER PARTY AGREEMENT

    This Time Charter Party Agreement (the “Agreement”) is made and entered into on [insert date] by and between [insert owner`s name] (the “Owner”) and [insert charterer`s name] (the “Charterer”).

    1. VESSEL

    The Owner agrees to lease the vessel [insert vessel name] (the “Vessel”) to the Charterer for the period of [insert charter period] (the “Charter Period”).

    2. HIRE

    The Charterer agrees to pay the Owner [insert hire amount] (the “Hire”) for the use of the Vessel during the Charter Period. The Hire shall be paid in [insert currency] and shall be payable in [insert payment terms].

    3. DELIVERY AND RED ELIVERY

    The Owner shall deliver the Vessel to the Charterer at [insert delivery port] (the “Delivery Port”) at [insert delivery date]. The Charterer shall redeliver the Vessel to the Owner at [insert redelivery port] (the “Redelivery Port”) at [insert redelivery date].

    4. LAYTIME

    The Charterer shall be allowed [insert laytime] (the “Laytime”) for the loading and unloading of cargo. Any time used in excess of the Laytime shall be subject to demurrage charges at a rate of [insert demurrage rate] per day.

    5. INSURANCE

    The Owner shall maintain hull and machinery insurance for the Vessel during the Charter Period. The Charterer shall obtain cargo insurance for goods transported on the Vessel.

    6. INDEMNIFICATION

    The Charterer shall indemnify and hold harmless the Owner from any claims arising out of the use of the Vessel during the Charter Period.

    7. LAW AND JURISDICTION

    This Agreement shall be governed by and construed in accordance with the laws of [insert governing law] and any disputes arising under this Agreement shall be resolved in [insert jurisdiction].

    8. TERMINATION

    Either party may terminate this Agreement upon [insert termination notice period] days` written notice to the other party.

    9. ENTIRE AGREEMENT

    This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them.

    10. EXECUTION

    This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

    IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

    [insert owner`s signature] [insert charterer`s signature]

    Owner Charterer

    As you can see, a time charter party agreement sets out the terms and conditions under which a shipowner leases their vessel to a charterer. By using our sample template as a starting point, you can ensure that your agreement is clear and comprehensive, providing both parties with the clarity they need to conduct business efficiently and effectively.