A time charter contract is an agreement between a shipowner and a charterer whereby the shipowner provides the vessel for hire to the charterer for a specified period of time. The charterer pays a hire fee to the shipowner and is responsible for all the expenses related to the operation and maintenance of the vessel during the charter period.
There are different types of time charter contracts, and the terms and conditions may vary depending on the parties involved and the type of vessel. In this article, we will provide a time charter contract sample that can be used as a reference for a typical agreement.
Time Charter Contract Sample
This Time Charter Contract (the “Agreement”) is entered into on [Date] between [Shipowner`s Name and Address], hereinafter referred to as “Owner,” and [Charterer`s Name and Address], hereinafter referred to as “Charterer.”
1. Vessel Description
The Owner agrees to provide the vessel named [Vessel`s Name and Type] for hire to the Charterer for a period of [Charter Period] starting from [Charter Start Date]. The vessel is in good condition, seaworthy, and meets all the statutory requirements for the trade in which she is engaged.
2. Charterer`s Obligations
The Charterer shall pay to the Owner a hire fee of [Charter Rate] per day, calculated from the time the vessel is delivered to the Charterer until the end of the charter period. The Charterer shall also be responsible for all the expenses related to the operation and maintenance of the vessel during the charter period, including but not limited to fuel, lubricants, crew wages, and provisions.
3. Owner`s Obligations
The Owner shall provide a competent and experienced crew to operate the vessel during the charter period. The Owner shall also ensure that the vessel is in good condition and seaworthy at the time of delivery to the Charterer. The Owner shall be responsible for the cost of repairs and maintenance due to normal wear and tear during the charter period.
4. Insurance
The Owner shall maintain the vessel`s hull and machinery insurance and P&I insurance for the vessel during the charter period. The Charterer shall provide insurance coverage for the cargo carried on the vessel.
5. Force Majeure
If either party is unable to fulfill its obligations under this Agreement due to circumstances beyond its control, such as war, strikes, and natural disasters, the affected party shall not be held liable for any default or delay in performance.
6. Termination
Either party may terminate this Agreement in the event of a breach of any of its terms and conditions by the other party. The terminating party shall give written notice to the other party, and the Agreement shall terminate at the end of the notice period.
7. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any dispute arising out of or in connection with this Agreement shall be submitted to the exclusive jurisdiction of the courts of [Jurisdiction].
In conclusion, a time charter contract is a crucial agreement that outlines the terms and conditions of the vessel`s hire and operation during the charter period. This sample contract provides a general framework for the parties involved, but it is essential to customize the terms and conditions to suit the particular circumstances of the charter. As always, it is advisable to seek legal advice before signing any agreement.
