Under this clause, the ship`s owner makes it clear that the vessel would be fit to sail in all respects at the beginning of the voyage, i.e. the vessel would be fit to travel to the country for which it is caught. There are four main methods for chartering a tramp boat – charter, on-time charter, cash charter and „flat-rate contract.“ Travel chartering is the most common. Under this method, a vessel is chartered for a one-shot voyage between specified ports with a cargo determined at a negotiated freight rate. On a timely charter, the charterer leases the vessel for a specified period of time, for a specified round trip or occasionally for a one-way trip indicated, the rental rate being expressed in the form of such a quantity per tonne of net weight per month. While on a travel charter, the owner bears all the costs of the trip (subject to the agreement on loading and unloading costs), the charterer currently bears the costs of the bunkers and shops consumed. While a party to the charter is the contract between a shipowner and a charterer, a transport contract is concluded between the shipper and the carrier. A carrier issues a shipper a bill of lading, a receipt of freight shipped, which also serves as proof of the transport contract. (In a charter charter, the charterer is the carrier; in a temporary or travel charter, the shipowner is the carrier). Prosecutions for breach of duty in a charter party are within the admiralty`s jurisdiction. If a breach of the charter conditions creates a maritime pledge, the action against the vessel may be charged itself.
[Citation required] In some cases, a charterer may own cargo and use a boat broker to find a ship to deliver the load at a certain price, called freight rate. Freight rates can be expressed on a specific link (for example. B for iron ore between Brazil and China), in world points (for oil tankers) or, alternatively, on a total amount, normally in U.S. dollars, per day for the agreed duration of the charter. An ice clause is inserted into a bill of lading or charter party when a vessel is transported to a port that may be closed for ice shipping upon the vessel`s arrival or after the vessel arrives. Charter liability insurance is a kind of insurance designed to protect shipping companies from certain risks or obligations.  This may include fines and violations of the law, damage to cargo or ship, and personal injury, including and to death.