What is meant by contract of affreightment?

Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period. Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.

What are the forms of contract of affreightment?

There are mainly two forms of a contract of affreightment used in the business: bill of lading and charter party.

What is the difference between charter party and contract of affreightment?

While it is possible to have a charter party of less than the entire ship, as a general rule a charter party deals with the full reach of a ship while a contract of affreightment deals with carriage of goods forming only part of the cargo and coming under a bill of lading.

What is the contract of affreightment explain the contract of affreightment in relation to the concept of charter party and the bill of lading?

A contract of affreightment is a contract between a ship-owner and a charterer, in which the ship-owner agrees to carry goods for the charterer in the ship, or to give the charterer the use of the whole or part of the ship’s cargo-carrying space for the carriage of goods on a specified voyage or voyages or for a …

What is contract of carriage by sea?

A contract of carriage may be defined as an agreement that is concluded between a carrier and a shipper for the carriage of goods by sea, in which a carrier, against the payment of freight, undertakes to deliver goods from one port to another.

When should the freight payable to owner?

“Freight” is often payable under charter party terms partially in advance, e.g. on loading, or on the issue of bills of lading. It may depend in amount on the intaken weight of cargo, or (less commonly) on the outturn weight, the cargo volume, cargo value, or on some other stipulated basis.

What does COA mean in logistics?

The main purpose of a contract of affreightment (COA) is to oblige a carrier to lift a fixed or determinable quantity of cargo of a specified type over a given period of time.

What is a voyage charterparty?

: a charter party whereby the owner of a ship agrees to transport a full shipload of cargo owned or furnished by another person with the ship’s crew and master in control of the navigation.

What does affreightment mean?

: a mercantile lease of a vessel under which it remains in charge of the owners also : the act of hiring a vessel under such a lease — compare charter sense 5.

Is a contract by which the ship owner lets the ship to another person?

— American jurisprudence defines charter party as a contract by which an entire ship or some principal part thereof is let by the owner to another person for a specified time or use. Charter or charter parties are of two kinds.

What is bill of lading with example?

An example of a bill of lading is the form that is provided by a moving company to a third-party carrier, which will be delivering store fixtures for them to a retail location. The third-party then hands the bill of lading over to the store as a receipt for the goods, once the delivery has been made.

Who are the contracts of affreightment ( COA ) used by?

Contracts of Affreightment (COA) is also used by government charterers for international trades. There are several standard charter parties for Contracts of Affreightment (COA) such as Volcoa and Intercoa.

Are there any drawbacks to a contract of affreightment?

Drawback – The only drawback that can be thought of is if the contract is not drafted after putting a lot of thought into it if it does not have important details and clauses. Then there will be a risk of money, time and efforts. What Happens in Case of Violation? A contract of affreightment comes along with certain obligations for both parties.

What are the different types of CoA contracts?

Hence they are not very standardized completely. There are two kinds of COA, bills of lading and charter parties (“Steamship Mutual – Contracts of Affreightment”, 2019). Though such contracts show that the trips are not just restricted to a particular vessel.

Can A CoA be drafted to suit commercial interests?

Whilst care is taken in drafting the COA to suit the parties commercial interests, this is one area where the commercial relationship between the parties to the COA is often a good incentive for both sides to find an acceptable commercial solution to any disputes.