What is Ship Chartering?

Ship chartering Malaysia is the process of renting out a ship. According to their needs, some people may rent a ship, just as they may rent an apartment or a car. It could be for the transportation of people or goods. The process of renting a ship is called ship chartering, and it starts with an agreement between the shipowner and another party. This contract is referred to as a charter party in nautical jargon. The shipowner is the party who lends out the vessel, while the second party who is leasing the vessel is referred to as the charterer.

ship chartering Malaysia

Who are Involved in Ship Chartering?

The right shipowner and charterer are brought together by shipbrokers, who also help to finalise the conditions of their contract. Typically, a person looking to lease a ship would go to a shipbroker to choose the best ship for their needs. In the process of renting a ship, there are three parties involved: the charterer who wants to rent the ship, the shipowner who owns the ship, and the shipbroker who helps connect them.

The Shipowner

A company or person that owns merchant ships registered in their name with a ship registry is referred to as a shipowner. Commercial ships transport goods or people for a fee. Members of the regional chamber of shipping or the International Chamber of Shipping are often shipowners (ICS). All shipping-related operational and regulatory matters are handled by this international organisation. The ICS also handles legal difficulties that arise in the shipping industry.

ship chartering Malaysia

The Charterer

A charterer is someone who wants to rent a ship, either to transport cargo or passengers. The charterer may or may not own the cargo. It might be transported by the charterer for the benefit of another party. A charterer may occasionally lease a ship and then re-rent it to a different party to convey cargo or passengers for profit. The voyage of the ship and the preparations for the handling of the cargo during loading and unloading are planned by the charterer. As a result, he is in charge of ensuring the security of the ship, its crew, and its cargo. The shipowner and the charterer both sign the charter party.

ship chartering Malaysia

The Shipbroker

Shipbrokers, like any other brokers, aid in finding the ideal client for a shipowner looking to rent their vessel or vice versa. They bill the shipowner a fee or a commission in exchange for their services. The commission could be a portion of the total freight the charterer paid to the shipowner. For business purposes, a shipowner may occasionally hire a full-time shipbroker. It is usual to discover brokers in the ship chartering industry who focus on the chartering of particular types of vessels. It could be for the transportation of different kinds of goods, such as liquid or dry bulk. The ship, its crew, and the cargo it transports are not the responsibility of the shipbroker. For more information, click here