Vessel Charter Party Agreement

VESSEL CHARTER PARTY AGREEMENT

[☐ TIME CHARTER] [☐ VOYAGE CHARTER] [☐ BAREBOAT CHARTER]

CHARTER PARTY

This Charter Party Agreement (the "Charter Party" or "Agreement") is made and entered into as of [__/__/____] (the "Effective Date"),

BETWEEN:

OWNER:
[________________________________]
Address: [________________________________]
[________________________________]
Country: [________________________________]
(hereinafter referred to as "Owner")

AND:

CHARTERER:
[________________________________]
Address: [________________________________]
[________________________________]
Country: [________________________________]
(hereinafter referred to as "Charterer")

(Owner and Charterer are each a "Party" and collectively the "Parties")

RECITALS

WHEREAS, Owner is the [☐ registered owner] [☐ disponent owner] of the vessel described herein;

WHEREAS, Charterer desires to charter the vessel for the purpose described herein; and

WHEREAS, Owner is willing to let the vessel to Charterer upon the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

PART I: FIXTURE DETAILS

1. THE VESSEL

2. CHARTER PERIOD / VOYAGE

For Time Charter:
☐ Period: [________________] [☐ days] [☐ months] [☐ years]
Minimum: [________________] / Maximum: [________________]
Commencement: On and from delivery of vessel

For Voyage Charter:
☐ Voyage: From [________________________________] to [________________________________]
[☐ One voyage] [☐ Consecutive voyages: ____]

For Bareboat Charter:
☐ Period: [________________] years
Commencement Date: [__/__/____]
Redelivery Date: [__/__/____]

3. DELIVERY

Delivery Port/Place: [________________________________]
Delivery Date/Range: [__/__/____] to [__/__/____]
Cancelling Date: [__/__/____]

Delivery Conditions:
☐ a. Vessel to be delivered in [________________________________] (geographic area)
☐ b. Vessel to be seaworthy and in every way fit for the service
☐ c. Cargo holds to be clean and ready for cargo
☐ d. All certificates valid and in force
☐ e. [________________________________]

4. REDELIVERY (Time Charter/Bareboat)

Redelivery Port/Range: [________________________________]
Notice of Redelivery: [____] days' notice required

Redelivery Conditions:
☐ a. Vessel to be redelivered in like good order and condition
☐ b. Ordinary wear and tear excepted
☐ c. [________________________________]

5. HIRE / FREIGHT

For Time Charter:
☐ Hire Rate: USD $[________________] per day / per calendar month
Payment: [☐ Semi-monthly] [☐ Monthly] [☐ Other: ________________] in advance
First Payment Due: Upon delivery

For Voyage Charter:
☐ Freight Rate: USD $[________________] per [☐ metric ton] [☐ cubic meter] [☐ lumpsum]
Payment: [☐ Upon completion of loading] [☐ Upon delivery of cargo] [☐ Other: ________________]
Freight prepaid and deemed earned upon shipment: [☐ Yes] [☐ No]

For Bareboat Charter:
☐ Hire Rate: USD $[________________] per [☐ day] [☐ month]
Payment: Monthly in advance

Payment Details:
Bank: [________________________________]
Account Name: [________________________________]
Account Number: [________________________________]
SWIFT/BIC: [________________________________]
Reference: [________________________________]

PART II: GENERAL TERMS AND CONDITIONS

6. OWNER'S OBLIGATIONS

6.1 Seaworthiness: Owner warrants that at the commencement of [the charter period/each voyage], the Vessel shall be:
☐ a. Seaworthy in hull, machinery, and equipment
☐ b. Properly manned with competent and qualified officers and crew
☐ c. Equipped with all necessary certificates, permits, and documentation
☐ d. Fit for the intended service and cargo

6.2 [For Time Charter] Throughout the charter period, Owner shall:
☐ a. Pay for crew wages, provisions, and insurance
☐ b. Maintain the vessel in class
☐ c. Maintain hull and machinery insurance
☐ d. Pay for deck and engine stores
☐ e. [________________________________]

6.3 [For Bareboat Charter] Owner shall only be responsible for:
☐ a. Delivery of the vessel in the agreed condition
☐ b. Maintaining vessel title and registration
☐ c. [________________________________]

7. CHARTERER'S OBLIGATIONS

7.1 [For Time Charter] Charterer shall:
☐ a. Pay hire punctually as agreed
☐ b. Pay for all fuel, port charges, pilotage, agency fees, and canal dues
☐ c. Pay for loading, stowage, and discharging of cargo
☐ d. Employ the vessel only in lawful trades
☐ e. Not ship dangerous goods without consent
☐ f. [________________________________]

7.2 [For Voyage Charter] Charterer shall:
☐ a. Pay freight as agreed
☐ b. Provide cargo ready for loading at the loading port
☐ c. Pay for loading and discharging (if agreed)
☐ d. [________________________________]

7.3 [For Bareboat Charter] Charterer shall:
☐ a. Pay all operating expenses including crew, fuel, maintenance, and insurance
☐ b. Maintain the vessel in good order and condition
☐ c. Maintain class and all certificates
☐ d. Employ vessel only in lawful trades
☐ e. [________________________________]

8. TRADING LIMITS

8.1 The Vessel shall be employed in lawful trades only.

8.2 Excluded Areas: The Vessel shall NOT be employed in or to:
☐ a. [________________________________]
☐ b. [________________________________]
☐ c. Areas subject to war, war-like operations, or sanctions

8.3 Ice Clause: [☐ Included] [☐ Not applicable]

9. CARGO (Voyage Charter)

9.1 Cargo Description: [________________________________]

9.2 Quantity: [________________] metric tons ([____]% more or less in Owner's option)

9.3 Loading Port(s): [________________________________]

9.4 Discharging Port(s): [________________________________]

9.5 Cargo Exclusions: The following cargoes are excluded:
☐ a. Dangerous or hazardous goods (without prior consent)
☐ b. Contraband or illegal substances
☐ c. Live animals
☐ d. [________________________________]

10. LAYTIME AND DEMURRAGE (Voyage Charter)

10.1 Laytime:
Loading: [____] running hours / [____] weather working days
Discharging: [____] running hours / [____] weather working days
Total: [____] running hours / [____] weather working days

10.2 Notice of Readiness:
When: [________________________________]
How: [________________________________]
Acceptance: [________________________________]

10.3 Demurrage Rate: USD $[________________] per day or pro rata

10.4 Despatch Rate: USD $[________________] per day (if applicable)

10.5 Time Not to Count:
☐ a. Sundays and holidays (unless used)
☐ b. Time lost due to weather
☐ c. Time lost due to vessel's fault
☐ d. [________________________________]

11. OFF-HIRE (Time Charter)

11.1 The vessel shall be off-hire:
☐ a. During breakdown of machinery or equipment
☐ b. During dry-docking or repairs
☐ c. During deviation not ordered by Charterer
☐ d. When vessel is prevented from performing due to Owner's fault
☐ e. [________________________________]

11.2 Hire shall cease from [________________________________] until [________________________________].

12. BUNKERS

12.1 On Delivery: Charterer to take over bunkers on board at delivery at the price of USD $[____]/MT for [☐ IFO] [☐ MDO] [☐ MGO] [☐ ________________].

12.2 On Redelivery: Owner to take over bunkers on board at redelivery at the price of USD $[____]/MT.

12.3 Quantity on Delivery: Approximately [____] MT IFO / [____] MT MDO/MGO.

12.4 Quantity on Redelivery: [____] MT IFO / [____] MT MDO/MGO (same as delivery, plus/minus [____] MT).

13. INSURANCE

13.1 Hull and Machinery Insurance: [☐ Owner] [☐ Charterer] shall maintain H&M insurance in the amount of USD $[________________].

13.2 Protection & Indemnity (P&I) Insurance: [☐ Owner] [☐ Charterer] shall maintain P&I coverage with a Club that is a member of the International Group.

13.3 War Risk Insurance: [☐ Owner] [☐ Charterer] shall maintain war risk coverage. [☐ Additional premium to be paid by Charterer if vessel enters war risk area]

14. LIENS

14.1 Owner shall have a lien on all cargo and sub-freights for unpaid hire/freight.

14.2 Charterer shall not suffer any liens to be placed on the vessel.

14.3 Charterer shall indemnify Owner against all liens arising from Charterer's actions.

15. BILLS OF LADING

15.1 The Master shall sign Bills of Lading as presented by Charterer, without prejudice to this Charter Party.

15.2 Charterer shall indemnify Owner against all consequences of signing Bills of Lading.

15.3 All Bills of Lading shall incorporate [☐ the Hague Rules] [☐ the Hague-Visby Rules] [☐ COGSA] [☐ ________________].

16. GENERAL AVERAGE

16.1 General average shall be adjusted in [________________________________] (place) according to [☐ York-Antwerp Rules 2016] [☐ York-Antwerp Rules 1994].

17. LAW AND ARBITRATION

17.1 Governing Law: This Charter Party shall be governed by and construed in accordance with [☐ English law] [☐ United States law] [☐ ________________].

17.2 Arbitration: Any dispute arising under this Charter Party shall be referred to arbitration in:

☐ London Arbitration:
In accordance with the Arbitration Act 1996 and LMAA Terms current at time of commencement

☐ New York Arbitration:
In accordance with the rules of the Society of Maritime Arbitrators

☐ Other: [________________________________]

17.3 Number of Arbitrators: [☐ One] [☐ Three]

18. FORCE MAJEURE

18.1 Neither Party shall be liable for failure to perform if such failure results from Force Majeure, including but not limited to:
☐ a. Acts of God
☐ b. War or armed conflict
☐ c. Government restrictions
☐ d. Strikes (not involving vessel's crew)
☐ e. [________________________________]

19. TERMINATION

19.1 Owner's Right to Terminate:
☐ a. Non-payment of hire for [____] days after due
☐ b. Breach of trading limits
☐ c. [________________________________]

19.2 Charterer's Right to Terminate:
☐ a. Vessel not delivered by cancelling date
☐ b. Vessel unseaworthy and not rectified within [____] days
☐ c. [________________________________]

20. NOTICES

All notices shall be in writing and sent to:

To Owner:
[________________________________]
Email: [________________________________]

To Charterer:
[________________________________]
Email: [________________________________]

21. CONFIDENTIALITY

The terms of this Charter Party shall be kept confidential by both Parties.

22. ENTIRE AGREEMENT

This Charter Party constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements.

PART III: ADDITIONAL CLAUSES (as applicable)

☐ BIMCO Sanctions Clause
☐ BIMCO Infectious or Contagious Diseases Clause
☐ BIMCO War Risks Clause
☐ ISM/ISPS Clause
☐ Low Sulphur Fuel Clause
☐ Slow Steaming Clause
☐ [________________________________]

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Charter Party as of the date first above written.

OWNER:

______________________________________
Signature

Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

CHARTERER:

______________________________________
Signature

Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

RIDER CLAUSES

[Additional clauses to be inserted here]

SOURCES AND REFERENCES

• BIMCO Standard Forms: https://www.bimco.org
• NYPE 2015 (Time Charter): New York Produce Exchange Form
• BALTIME 2001 (Time Charter)
• GENCON 2022 (Voyage Charter)
• BARECON 2017 (Bareboat Charter)
• York-Antwerp Rules: https://comitemaritime.org