chartering all types of main fleet & offshore vessels
How can a ship get chartered?
Ship chartering, sometimes referred to as ship rental, starts with an agreement between the shipowner and a third party. This contract is referred to as a charter party in the maritime industry. The shipowner is the one that gives the vessel in rent, while the charterer is the second entity that takes the ship on rent.
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Who connects these two groups of people?
​“THEOMNIVOLT” as a Shipbrokers plays a crucial role in matching up the appropriate shipowner and charterer and completing the details of their contract. There are three parties involved in the process of renting a ship: the charterer, who needs the ship for rent, the shipowner, who owns the vessel being rented, and shipowner qwners of merchant ships registered in their names with a ship registry might be either individuals or organizations.For a fee, merchant ships can transport passengers or cargo.
Typically, shipowners belong to either the International Chamber of Shipping (ICS) or the Regional Chamber of Shipping. This international organization is in charge of all shipping-related operational and regulatory matters. The ICS also handles legal difficulties that arise in the shipping industry.
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Charterer​
A charterer is a person who wishes to rent a ship for the purpose of carrying passengers or cargo. The charterer may or may not own the cargo. It's possible that the charterer is shipping it for a different customer.A charterer may occasionally take a vessel on lease and then re-rent it to a different party for the transportation of passengers or freight in order to make money.The trip of the ship and the preparations for handling goods during loading and unloading are planned by the charterer. As a result, he is in charge of ensuring that the cargo, crew, and ship are all safe.The shipowner and the charterer sign the charter party.
Shipbroker​
Shipbrokers, like all other brokers, assist shipowners looking to rent their vessels by helping them find the ideal tenant, or vice versa. They bill the shipowner a fee or a commission for their services. A portion of the total freight that the charterer pays to the shipowner may be used as the commission.An owner of a ship may occasionally designate a full-time shipbroker to solicit business. It is not uncommon to discover brokers in the ship chartering industry who focus only on chartering particular kinds of vessels. It might be used to convey products like liquid and/or dry bulk.A shipbroker bears no responsibility for the ship, its contents, or its actions. He serves just as a go-between for the shipowner and the charteer.
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Registeration of Ships
A ship registry is the institution or group that is responsible for registering merchant ships. The ship registration could be either owned by the government or a commercial company, such Bureau Veritas, Lloyds registration, Indian Register of Shipping (IRS), etc.
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All ships must register in order to receive their nationality and ownership certification. Every registered ship is subject to the laws of the flag state, or the nation in which it is registered. Only ships belonging to that nation may be registered by certain nations or organizations. These establishments are referred to as National Registries.
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Registries that permit the registration of foreign and national ships are known as open registries.The charterer should be aware of the vessel's flag and cargo-handling capabilities, just as the shipowner must know the kind of cargo to be carried on the ship, when it will sail, etc.
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The shipbroker would benefit from having all of these facts before contacting a potential client.
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The Three Primary Ship Charter Types
Voyage Charter
The most typical kind of ship charter is this one. Typically, a voyage charter is hiring the ship and personnel for a specific journey/voyage between two or more ports. The rent will be determined by the weight or volume of cargo carried on the journey, or it may be a set sum decided upon in advance by both parties.
Time Charter
A time charter is when a ship is rented for a specific amount of time. Similar to other charter arrangements, the crew and the vessel are chartered for a predetermined amount of time. The terms and conditions of the trip, the duration of the hire, the kind of cargo to be carried, etc., will all be expressly stated in the charter party.
Based on the deadweight ton, the charterer under a time charter may pay a daily or monthly charge.
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Bareboat Charter
The crew of the charterer and the vessel management personnel operate and oversee the vessel during a bareboat charter. Only issues pertaining to port operations and ship technical management will be handled by the shipowner.
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For the term of the charter party, the charterer shall be responsible for the ship's safety and all out-of-pocket payments to third parties. Another name for a bareboat charter is a demise charter.
Charterparty
A contract known as the charter party exists between the shipowner and the charterer. It outlines each party's obligations with relation to the ship charter. The charter party needs to be comprehensive and address every facet of the arrangement, including the types of cargo to be put onto the ship, ports of call, and the charterer's re-rental of the vessel. Everybody involved in ship chartering should be aware of the different components that make up a successful charter party or fixture. Both the shipowner and the charterer need to be aware of each other's past, financial situation, and reputation in the industry.
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Before Concluding the Memorandum of Agreement
Brokers and Initial Discussions
Prior to the MOA being signed, there are a few crucial steps. Typically, a motivated seller or potential buyer will first contact a ship broker. Typically, brokers receive compensation on a commission basis that is based on the vessel's worth and is contingent upon closure. Traditionally, the seller has the legal obligation to pay the commissions to the brokers. With an effective commission of one percent each, the seller's and buyer's brokers often share the entire brokerage charge. This arrangement comes in a variety of forms in real life. It is important for all involved to remember that brokers are never parties to the main sale and buy arrangement under contract.
The primary terms are examined when a potential sale has been found, with the brokers frequently leading the negotiations. Preliminary talks can take many forms, but they usually center on major issues like cost, deposit requirements, delivery schedules, and inspections. It is common for lawyers to become involved only after these initial discussions are finished.
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The parties are advised to make sure that they cannot mistakenly create legally binding agreements during these conversations. This could (and has) happened by unintentionally making or accepting an offer that can be accepted through a broker acting as an ostensible agent. By making sure that all correspondences and recaps expressly state that all provisions are contingent upon the execution of the MOA, for example, such dangers can be readily avoided. It is now standard procedure to include terms like "subject to contract" in pertinent discussions.
