Establishing Vessel Chartering Relationships

The industrial world is increasingly developing and taking advantage of all conditions in distributing their goods or services from sending to consumers who will receive them. This is shown, among other things, by the existence of vessel chartering in Malaysia.

In the freight forwarding industry, Vessel Chartering is a matter that refers to an agreement formed by two or more parties stating the cooperation between the charterer who owns the cargo with the ship owner in carrying out the transportation and delivery of cargo to a location and within a certain time.

In general, vessel chartering begins with the following actions:

  • A meeting of both parties aimed at discussing the actions that need to be taken.
  • Explain and determine the location for picking up the goods to be sent and a clear destination
  • Discuss and design costs, assets, convenience, and integrity to obtain conducive and effective relationships.

On the other hand, vessel chartering itself is divided into several sections:

  • Voyage Charter or an agreement between the two parties agreeing to travel from the origin to the destination area, which is determined by the agreed payment based on the cargo delivered by taking into account the quantity of cargo or lump-sum freight. This technique is often referred to as the taxi method, because voyage charter is a way to charter a ship 1 or more times, where the shipper or charterer will be active in the operation.
  • Time Charter or an agreement made based on a hire rate or a fee for a certain duration in sending cargo of goods by ship or sea route by hiring the captain. In general, the charter of the vessel will be carried out within 3 months or more where the time charter will provide an explanation during the current charter period to their crew.
  • Bareboat, which is a charter method that rents out the boat as a whole without a crew, so that the charterer has a big responsibility for maintenance, commercial, insurance, etc. concerning the ship. Bareboat or leasing is a technique that is almost the same as time charter, but the difference is that the boat is rented without crew, fuel, insurance, etc. So that it can be said that only the ship’s body and attached instruments are given to the charterer.

Establishing a Vessel Chartering relationship is often demonstrated in several stages which include:

  • Provide towing tug
  • Carry out licensing of the competent institutions.
  • Survey of risks and hazards during shipping
  • Arrange everything related to vessel chartering such as crew, accommodation, transportation, permits, etc.
  • Provide a security team.
  • Deactivation, preservation, maintenance and reactivation.

In vessel chartering, there are several duties and responsibilities that require each party to have roles and rights that can be obtained. For charterers there are several obligations, including providing safety, costs while on board, fuel, pilotage services, loading and unloading services, equipment and facilities. While the shipping agency provides its obligations in providing crew services, maintenance, bunkers, providing a place for ships, arranging contracts and communication between the two parties. On the other hand, there are rights that each party will receive. For charters, there is convenience in inspection or inspection before the ship is used, cancellation of the agreement if there are problems or over-time delivery, chartering back to third parties. As for the shipping line, the right that can be felt is a request for compensation for the damage made by the lessee.

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