What Makes a Charter? Part One of a Two-Part Series

by Philip Rankin

This question might seem to admit of an obvious answer – a deal between a shipowner and a charterer to carry a cargo from A to B. However there is rather more to this than may meet the eye. It is an important question for parties other than the owner and charterer because their legal and commercial relationship with either party is affected by it.

For a ship financier, as well as for the owner, charters are the source of his income from the ship’s earnings. Broadly, the owner has only two ways of making money – speculative sale and purchase, asset play, and regular earnings from the ship’s employment, which for an independent non-industrial or non-integrated shipowner means charter income.

This is only an excerpt of What Makes a Charter? Part One of a Two-Part Series

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