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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Contract of Affreightment Law and Legal Definition | USLegal, Inc.

The shipowner may preserve his lien by landing the goods and retaining them in his own warehouse, or by storing them in a public warehouse, subject to the conditions required by the Merchant Shipping Act As a result, COAs contain very few standardised terms, other than the individual voyage charter terms that govern each lifting once the vessel has been tendered for loading. The freight is usually fixed at a certain rate per gross register ton per month, and made payable monthly in advance.

Charter-parties are mostly – as stated earlier in this article – for either a voyage or a period of time. As with many of the issues that arise under COAs, there is little direct case law and the answers always turn on the particular facts and circumstances of each case. It all depends on whether there is evidence to show that the owners nomination on the Monday was made within or after working hours. Subject to licence being granted.

This means that the holder of a bill of lading signed by the master without knowledge of the terms of the time charter-party may hold the owner responsible for the contract the master signed as an employee of the shipowner—though, in fact, in signing the bill of lading xontract master acted as an agent for and at the affreightmeht of the time charterer.


Provision is made for suspension of hire in certain cases if the vessel is disabled. This article has multiple issues. Sometimes the number of days the vessel may be kept on demurrage at the agreed rate is fixed by the charter-party. Nautical portal Law portal. If the ship could carry out consecutive voyages it would most probably have to return to the loading place in ballast and this would increase the freight the owner would have to charge to make an acceptable return on his investment.

Other expenses, such as warehousing fees, are for the benefit of the cargo-owner. Sometimes the charter-party defines no fixed time for loading or discharging. Bill of lading Charter-party. Sometimes a difficulty arises, notwithstanding these precautions: Similar Definitions from same Category:. Does the breach of the condition timely acceptance entitle the owner to treat himself as discharged from the COA?

The COA rarely makes express provision for timely acceptance of nomination to be of the essence of the contract. A fixed quantity of oil should reach Indian ports every month for next 2 years.

What is contract of affreightment? definition and meaning –

Affreiightment shipowner discharges them from further liability and takes instead a lien on the cargo for payment of all freight, demurrage, or dead freight that is payable. The main purpose of Contract of Affreightment is to put onus on carrier to transfer a certain amount of goods in certain time.

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If the nomination fails, is the charterer entitled to nominate a further laycan spread? A ship may be let, like a house, to a person contrract takes possession and control of it for a specified term. For example, the expression fairly evenly spread is often used when neither party wishes to be tied down to any particular dates.


contract of affreightment

The shipowner is further secured by the stipulation that if the total freight payable under the bills of lading is less than the full chartered freight, the difference is afffeightment to the shipowner before the vessel sails. Browse the definition and meaning of more terms similar to Contract of Affreightment.

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.

Beaufort wind scale Force 7. The charterer agrees to pay a specified price, called freightfor the carriage of the goods or the use of the ship.

In a affreightmnt at sea, it may be necessary for the safety of ship and cargo to cut away a mast or to jettison throw overboard part of the cargo.


What are the advantages of registering under a flag of convenience? A clear breach of a condition by charterers will enable owners to fix the vessel on a different contract quickly and with certainty.

Affreightment from freight is a legal term used in affreightent. For each separate afgreightment or parcel of goods shipped, a bill of lading is almost invariably given.

The crew of non-UK officers and ratings are to join two days later. There is usually what is called the cesser clause, by which the charterer’s liability under the charter-party ceases on shipment of the cargo, the shipowner taking a lien on the cargo for freight, dead freightand demurrage. A bill of lading is a document the master or agent for the shipowner signs on behalf of the master to acknowledge the shipment of a parcel of goods, and the terms under which it is carried.

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