What does affreightment mean?
freight
Affreightment (from freight) is a legal term used in shipping. The charterer agrees to pay a specified price, called freight, for the carriage of the goods or the use of the ship. A ship may be let, like a house, to a person who takes possession and control of it for a specified term.
What is contract of affreightment in shipping?
Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period. Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.
How does a contract of affreightment work?
A Contract of Affreightment is a legal agreement between the shipowner and the charterer. The shipowner agrees to transport a specific amount of cargo for a specific period for the charterer. In this agreement, the charterer is responsible to make payments whether the goods are ready to be moved or not.
What is the difference between contract of affreightment and charter party?
While it is possible to have a charter party of less than the entire ship, as a general rule a charter party deals with the full reach of a ship while a contract of affreightment deals with carriage of goods forming only part of the cargo and coming under a bill of lading.
How do you pronounce affreightment?
Phonetic spelling of affreightment
- af-freight-men-t.
- uh-freyt.
- af-freight-ment.
What are the functions of bill of lading?
A bill of lading must be transferable, and serves three main functions:
- it is a conclusive receipt, i.e. an acknowledgement that the goods have been loaded; and.
- it contains or evidences the terms of the contract of carriage; and.
- it serves as a document of title to the goods, subject to the nemo dat rule.
What does free on board means?
Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB origin” means the purchaser pays the shipping cost from the factory or warehouse and gains ownership of the goods as soon as it leaves its point of origin.
Is force majeure an act of God?
What are acts of God or force majeure? ACTS OF GOD OR FORCE MAJEURE refer to any event beyond the reasonable control of the Owner or the Contractor, as the case may be, and which is unavoidable notwithstanding the reasonable care of the party affected.
What is Charter Party agreement?
A charter party is a document of contract by which a shipowner agrees to lease, and the charterer agrees to hire, a vessel or all the cargo space, or a part of it, on terms and conditions forth in the charter party.
Who are the main contracting parties in a contract of affreightment?
Essentially, such a contract is an agreement between two parties, the carrier and the shipper. The carrier undertakes to carry the goods to a specified destination, and the shipper to pay the freight.
What are the three main functions of a bill of lading?
Which is the best definition of affreightment?
Affreightment. Affreightment (from freight) is a legal term used in shipping . A contract of affreightment is a contract between a ship-owner and another person (called the charterer ), in which the ship-owner agrees to carry goods for the charterer in the ship, or to give the charterer the use of the whole or part…
What happens at the end of a contract of affreightment?
At the end of the hire period, the charterers are expected to pay for the fuel used. A contract of affreightment is not strictly a charter contract, but is somewhat similar to a voyage charter. Under a contract of affreightment the shipowner undertakes to carry a number of cargoes within a specified period of time on a specified route.
How does a contract of affreightment differ from a voyage charter?
A contract of affreightment is not strictly a charter contract, but is somewhat similar to a voyage charter. Under a contract of affreightment the shipowner undertakes to carry a number of cargoes within a specified period of time on a specified route. Agreed frequency of cargoes may require more than one ship.
Who are the contracts of affreightment ( COA ) used by?
Contracts of Affreightment (COA) is also used by government charterers for international trades. There are several standard charter parties for Contracts of Affreightment (COA) such as Volcoa and Intercoa.