Glossary term
Charter Party
The contract under which a charterer hires a vessel or part of its capacity from its owner.
The contract by which a shipowner lets a vessel to a charterer. A voyage charter engages the vessel for a specified voyage; a time charter engages it for a period; a bareboat charter hands over the vessel itself, crewed and operated by the charterer.
Where cargo moves under a charter, a bill of lading may incorporate the charter party’s terms, which can bind a holder who never saw them.