{"id":874,"date":"2026-01-19T19:46:08","date_gmt":"2026-01-19T19:46:08","guid":{"rendered":"https:\/\/sailorvikas.com\/?p=874"},"modified":"2026-01-19T19:46:08","modified_gmt":"2026-01-19T19:46:08","slug":"chartering","status":"publish","type":"post","link":"https:\/\/sailorvikas.com\/index.php\/2026\/01\/19\/chartering\/","title":{"rendered":"Chartering"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Chartering<\/h2>\n\n\n\n<p>Shipping plays a vital role in international trade. Huge volumes of cargo or goods are transported by water. Chartering is about arranging this transportation of cargo by sea. A charterer employs a broker to find a shipowner from whom he can hire a ship for a voyage or for a period, to carry cargo for a certain freight rate. Ships engaged in carriage of goods may not be directly operated by shipowners. Instead, they maybe chartered \/ leased from shipowners by shipping companies\/operators for a specified period, as per the governing contract.<br>This course will give you an understanding of negotiating a contract and the performance of a charter. You will also get an insight of the various issues involved in chartering and the precautions that need to be taken for a successful charter.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/sailorvikas.com\/wp-content\/uploads\/2026\/01\/image-45.jpeg\" alt=\"\" class=\"wp-image-875\" srcset=\"https:\/\/sailorvikas.com\/wp-content\/uploads\/2026\/01\/image-45.jpeg 400w, https:\/\/sailorvikas.com\/wp-content\/uploads\/2026\/01\/image-45-300x300.jpeg 300w, https:\/\/sailorvikas.com\/wp-content\/uploads\/2026\/01\/image-45-150x150.jpeg 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/figure>\n\n\n\n<p><strong>A Charter Negotiation<\/strong><\/p>\n\n\n\n<p>Ships are fixed on charters arranged between the ship owner and charterer by the \u201cshipbrokers\u201d, acting as negotiators for, the \u201cship owner\u201d and the \u201ccharterer\u201d. Shipbrokers may comprise of:-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The ship owners\u2019 brokers, who arrange employment for their principals\u2019 ships;<\/li>\n\n\n\n<li>The charterers\u2019 brokers, who find ships to carry out their principals\u2019 requirements;<\/li>\n\n\n\n<li>The tanker brokers, who arrange for oil-cargo fixtures in the specialist tanker market;<\/li>\n\n\n\n<li>The liner brokers who find cargo for liner owners and operators;<\/li>\n\n\n\n<li>The coasting brokers who work in the short-sea market and often combine the functions of owners\u2019 and charterers\u2019 brokers;<\/li>\n\n\n\n<li>The ship\u2019s agents, who are employed by ship owners and charterers to service their vessels\u2019 needs in ports; and,<\/li>\n\n\n\n<li>Sale and purchase brokers, who buy and sell ships and can, if necessary, arrange new-building contracts for their principals.<\/li>\n<\/ul>\n\n\n\n<p>The basic stages of the \u201ccargo fixing process\u201d are as follows:-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Charterers\u2019 broker to circulate the \u201ccargo orders\u201d, broadly indicating the charterer\u2019s forthcoming cargo transportation needs;<\/li>\n\n\n\n<li>Owners\u2019 broker to circulate the \u201cposition lists\u201d or \u201ctonnage lists\u201d, indicating the \u201copen\u201d dates and positions of the ships which are available;<\/li>\n\n\n\n<li>Feedback on the \u201cmarket reports\u201d by the brokers is taken.<\/li>\n\n\n\n<li>For arriving at a decision or even otherwise, exchange of \u201cterms and conditions\u201d, between brokers, on behalf of their respective principals, trading offers by both sides. In case, the main terms and conditions can not be resolved, the discussions on further details are no longer continued.<\/li>\n\n\n\n<li>Further discussions are held on various \u201csecondary conditions\u201d, provided the main terms and conditions have been agreed upon.<\/li>\n\n\n\n<li>Fixture, i.e. the full and final agreement of the \u201ccargo fixing\u201d.<\/li>\n<\/ul>\n\n\n\n<p>Shipbrokers are remunerated by the payment of a \u201ccommission\u201d, also known as \u201cbrokerage\u201d, which is payable by the ship owner to each broker, who is involved in arranging a contract.&nbsp;<\/p>\n\n\n\n<p>For voyage and time charters, the brokerage payable is specified in a particular clause in the agreement, which is normally 1.25 % of the ship owner\u2019s gross receipts, from hire, freight, dead freight (the amount a shipper needs to pay, when the shipper does not utilize the space he has reserved on a ship) and demurrage, as payable to each broker who is involved.<\/p>\n\n\n\n<p>The global \u201cprofessional body of shipbrokers\u201d is the London-based \u201cInstitute of Chartered Shipbrokers\u201d (website: www.ics.org.uk), whose motto is, \u201cOur Word, our Bond\u201d. The said institute sets professional standards for shipbrokers, through annual examinations.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chartering Shipping plays a vital role in international trade. Huge volumes of cargo or goods are transported by water. Chartering is about arranging this transportation of cargo by sea. A charterer employs a broker to find a shipowner from whom he can hire a ship for a voyage or for a period, to carry cargo [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-874","post","type-post","status-publish","format-standard","hentry","category-celestial-navigation","entry"],"_links":{"self":[{"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/posts\/874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/comments?post=874"}],"version-history":[{"count":1,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/posts\/874\/revisions"}],"predecessor-version":[{"id":876,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/posts\/874\/revisions\/876"}],"wp:attachment":[{"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/media?parent=874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/categories?post=874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sailorvikas.com\/index.php\/wp-json\/wp\/v2\/tags?post=874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}