Home » News » Company News » Difference between voyage charter and time charter

Difference between voyage charter and time charter

The chartering business between shipowners and charterers is a commercial activity in international trade, also called invisible trade. London charter market, New York charter market, Hong Kong and Tokyo, etc.

1. The characteristics of chartering transportation
1. Belonging to non-scheduled ships
2. The bill of lading is not a complete stand-alone document
3. Based on the charter contract, various costs and delays in the shipping schedule are fixed according to the contract
4. Mainly transport bulk cargo

The way of chartering

There are two main modes of chartering transportation: fixed-distance chartering and time-chartering. Whether it is chartering by voyage or by time limit, both the ship and the charterer must sign a charter contract to clarify the rights and obligations of both parties.

1. Journey Rental

Voyage Charter, also known as voyage charter, is a chartered transport for the specified cargo to be carried on one voyage or several voyages between designated ports by the owner of the ship.

2. Time charter

Time Charter. It means that the owner of the ship leases the ship to the charterer for a certain period of time. The charterer can also use this period charter as a liner or voyage charter.

Difference between voyage charter and time charter

1. The operation and management of the ship is different. In the case of voyage charter, the charterer is not responsible for the operation and management of the ship, and does not bear the daily expenses (including marine dyes, boiler water, pilot fees, terminal fees); in the case of time charter, the charterer is responsible for the operation and management of the ship. (Bear all expenses, including daily and non-daily expenses, crew wages, ship overhaul and inspection, insurance premiums)

2. The dispatching authority for ships is different. In the case of voyage charter, the charterer has no right to dispatch the ship; in the case of time charter, the charterer has the right to dispatch the ship (route, port and cargo).

3. The methods of calculating and paying the freight are different. The freight of the voyage charter is calculated according to the quantity of the goods, including prepaid, prepaid, and partly prepaid and partly paid; the rental of the time charter is calculated according to the summer full deadweight of the ship Prepaid monthly or semi-monthly.

4. Other fees vary

The burden of loading and unloading of fixed voyage charter cargo

①The ship side bears the loading and unloading fees, which can also be called “liner conditions” (Gross Terms). Mostly used for the transportation of wood and packaged goods.
②The ship is in charge of loading or unloading (Free Out, FO). That is to say, the ship bears the loading fee, but does not bear the unloading fee.
③ Ship side pipe unloading regardless of loading (Free In, FI). That is, the ship bears the unloading fee, but not the loading fee.
④The ship does not care about loading and unloading (Free In and Out, FIO), that is, the ship bears neither the loading fee nor the unloading fee. This condition generally applies to bulk cargoes. When this method is adopted, if necessary, it is necessary to clearly define who should pay for the handling and leveling fees, such as the (Free In and Out, Stowed and Trimmed, FIOST) clause.

Charter Shipping by Basenton Logistics

Charter Shipping by Basenton Logistics

In the fast-paced world of global commerce, efficient logistics management is the cornerstone of success. When it comes to transporting goods, charter transportation services have emerged as a strategic tool for businesses seeking flexibility, reliability, and customized solutions. This article delves into the realm of logistics charter transportation, exploring what it is, its benefits, and how it can optimize your supply chain.

Charter Transportation Defined

Charter transportation, in the context of logistics, refers to the practice of renting an entire vehicle or vessel, such as trucks, cargo planes, or ships, for the exclusive use of a single shipper or cargo owner. Unlike conventional transportation, where space is shared with multiple shippers, charter transportation offers complete control over scheduling, routes, and cargo.

The Benefits of Charter Transportation Services

Flexibility: Charter transportation provides unparalleled flexibility. Shippers can dictate the schedule, routes, and stops, enabling them to adapt quickly to changing market conditions and unforeseen circumstances.

Dedicated Capacity: With a charter, the entire transportation capacity is reserved for your cargo. This is particularly advantageous for businesses with large shipments, time-sensitive goods, or specialized cargo.

Customization: Charter transportation allows for tailoring solutions to meet specific cargo requirements. Whether it’s temperature-sensitive pharmaceuticals or oversized machinery, a charter can be adapted accordingly.

Reduced Risk of Damage or Loss: Chartering a vehicle or vessel exclusively for your cargo lowers the risk of damage or loss compared to shared transportation, where goods may be handled multiple times.

Streamlined Operations: Charter transportation simplifies logistics management. There are fewer touchpoints and fewer parties involved, reducing the chances of miscommunication or delays.

Applications of Charter Transportation

Charter transportation is versatile and can be applied across various industries and scenarios:

Manufacturing: Manufacturers can charter cargo planes or ships to receive critical components or deliver finished products to clients without delays.

Pharmaceuticals: Temperature-sensitive pharmaceuticals require precise conditions during transport. Charter transportation ensures strict temperature control.

Oil and Gas: The oil and gas industry often requires the movement of large, heavy equipment and machinery, making chartering an ideal choice.

Humanitarian Aid: In emergency situations, charter transportation enables the rapid delivery of relief supplies, medical equipment, and personnel.

The Role of Charter Brokers and Forwarders

Chartering a vehicle or vessel may seem complex, but charter brokers and freight forwarders specialize in facilitating these arrangements. They leverage their industry knowledge, networks, and expertise to connect shippers with suitable transportation options.

Charter Shipping by Basenton Logistics, The availability and quality of air charter shipping services can vary widely by region and by specific logistics provider. When considering air charter shipping, it’s important to do your due diligence and research to ensure you choose a reliable and experienced partner for your shipping needs.

Scroll to Top