Slot Chartering

Slot Chartering

Slot chartering is common in the containerized trade. Slot chartering is a method where a Non Vessel Operating Common Carrier (NVOCC)2 buys slot space on ships operated by a large container line (called the head owner), using a standard SLOTHIRE contract. They then sell this space to their customers on their own terms and issue their own bills of lading.
The head owner may have several SLOTHIRE contracts with several NVOCCs.
Most SLOTHIRE contracts have fixed rates for each twenty-foot equivalent (TEU) slot, with premiums to be paid for hazardous cargo slots. The NVOCC who signs a SLOTHIRE contract with a head owner acts as the vessel operator for bills of lading (B/L) issued to their customers. These B/Ls will have terms similar to B/Ls that are issued by the head owner (to their customers). In SLOTHIRE contracts the NVOCC will be responsible for cargo claims of their customers.