Manufacturing companies that need to ship products may consider a charter party at some point. A charter party is essentially an agreement that has been made between the owner of a cargo ship and the cargo’s owner. The term charter party has continued to take on new connotations in the shipping industry with time. For example, charter party can even refer to moving passengers from one location to the next. Carrying passengers is just another facet of a potential charter party.
The word chartering has also evolved from this type of transaction. In the business of shipping, a ship owner and manufacturing company many discussing their shipping method as chartering instead because it’s a more specific term. Chartering is an effective way to ship goods over long distances using ships.
When chartering, there is a process that manufacturers will follow. First, the manufacturing management team will find a shipbroker. A shipbroker is someone who works to create a dialogue between manufacturers and ship owners. The shipbroker will negotiate prices between the manufacturing team and the ship owner. They will discuss the price involved to ship certain amounts of cargo over long distances. In the business, this price is called freight rate.
Shipbrokers can help manufacturing companies find the right Used Container Vessels for their product. They can also determine the type of charter that is necessary given the product. Beyond just figuring out which type of charter party is necessary, the shipbroker can also include safety policies in the contract between the shipowner and manufacturing team. They can find options for the manufacturers involving one-shipment chartering, rather than taking multiple shipments. However, in some instances, multiple shipments may be required given time constraints or the safety of the cargo. It all depends on the nature of the shipment and product.
There are different types of chartering and each has their own advantages. One business that offers chartering services, container ship sales, and consultation, NautiSNP, has released an article on the benefits of contracting a charter party. To read their article and learn more about the many advantages, visit http://www.containershipsforsale.net/benefits-charter-party/.
Benefits Of Charter Party 