Contracts Of Affreightment are used when a shipowner or operator agrees to transport a given quantity over a fixed period of time. Unlike other charter parties. COA (Contract of Affreightment). Originally, contracts for the carriage of goods by sea, such as voyage charters and time charters, were termed “contracts of. In the context of Maritime law, a contract of affreightment is an agreement for carriage of goods by water. A contract of affreightment shall employ a bill of lading.

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Yet other expenses, such as port charges incurred to enter the port of refuge, are for the benefit and safety of both ship and cargo. It has become established in clntract construction of the cesser clause that, if the language permits it, the cesser of liability is assumed co-extensive only with the lien given to the shipowner.

If the original ship which the shipowner, if he has entered into a COA, is unable to make the next voyage, the shipowner can go to the spot market to charter-in tonnage.

Voyage charter Time charter Bareboat charter Demise charter Affreightment. The law, however, interferes to some extent in regulating the effect to be given to contracts. It is still a relatively new development in shipping and there are still areas where problems can occur because users are not totally familiar with the issue.

Affreightment – Wikipedia

A clause may specify the length of time, usually described as lay days, for loading and discharging, and for the demurrage to pay if the vessel is detained beyond contracct lay days.

COAs enable the ship-owners to be flexible and allow the vessels to be fitted into a pattern of trade that maximises laden as against ballast distances and allows such arrangement to be concluded at very contraact rates of freight. However, the owner of the cargo is entitled under the contract of affreightment to the ordinary service of the ship and crew for the safe carriage of the cargo to its destination, and the shipowner is bound to pay all ordinary expenses incurred for the voyage.


However, charters are for one named ship carrying out one or more voyages or let on hire or leased out for a period. If loading or discharging is not done in a reasonable time, [3] the shipowner can claim damages for detention.

Charter-parties are mostly – as stated earlier in this article – for either a voyage or a period of time. However broad or detailed the terms are, care needs to be taken in the terms used. On the other hand, the shipowner is obligated to deliver the goods safely, and this obligation is, by common law, subject to this exception only that the shipowner is not liable affdeightment loss or damage caused by an act of God or the Kings’ enemies.

Some clauses specify the amount of freight to pay and affreigbtment manner and time of payment. A contract of affreightment is a contract between a ship-owner and charterer i. Moel Tryvan, A. Given the long term nature of the contract, a COA is almost always tailor made to meet the specific needs of the parties concerned. The ship is employed, within certain limits, according to needs of the charterers.

Contract of Affreightment Law and Legal Definition

Beaufort wind scale Force 3. Ship chartering Admiralty law Legal terminology. The COA rarely makes express provision for timely acceptance of nomination to be of the essence of arfreightment contract. The shippers under the bills of lading, if they are not the charterers, are not liable for the chartered freight, but only for the bill of lading freight.

The lien is affreithtment right of the shipowner to retain the goods carried until paid the freight charges, demurrage, or other charge for which a lien has been given. Dead freight is the amount of freight lost, and therefore recoverable by the shipowner from the charterer as damages if a full and complete cargo is not loaded according to the charter-party’s terms. It is, therefore, convenient to consider first affreightmenh of this kind where there is no express agreement, oral or written, except as to the freight and destination of the goods, and where, consequently, the rights and obligations of the parties as to all other terms of carriage depend wholly upon the rules of law, remembering always that these same rules apply when there is a written contract, except insofar as they are qualified or negated by the terms of such contract.


The downside to this in practice is that affreightmemt term is imprecise and difficult to enforce or determine from a legal aspect when the defining factor depends on the parties own definitions of the suitable shipment intervals.

The contract is subject to exceptions similar to those in bills contracf lading and voyage charter-parties.

However, when the shipowner incurs extraordinary expense for the safety of the cargo, he can recover the expense from the cargo’s owner as a special charge on cargo. In the late ls and early s the party which had control over quite a volume of specific cargo may have wanted it moved in mare than one shipment over a conrtact period.

In other words, the shipowner has a lien on the goods carried for the freight payable in respect of the carriage. Ship-owner Ship-manager Ship-broker Charterer.

Even if the nomination was made after working hours on the Monday, it would seem that the provision that a working day to be a minimum of 8 working hours would be sufficient to show intention by the parties to give the charterers a whole working day to respond, as an exception to the general rule.

Where possession of a ship given to a hirer, who appoints his own master and crew, different considerations apply. A ship may be let, like a house, to a person who takes possession and control of it for a specified term.