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Contract of affreightment example

Contract of affreightment sample 2025

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The document is an enquiry for a Contract of Affreightment (COA) by Rashtriya Ispat Nigam Limited (RINL) for the shipment of limestone in bulk. It outlines the cargo specifications, shipment schedule, contract duration, loading and discharge terms, vessel requirements, freight rates, and conditions for participation in the bidding process. The COA involves eight shipments of approximately 400,000 MT over one year with options for extension and detailed stipulations regarding vessel nomination and documentation.

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What is the difference between a charter and a 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 difference between a charter and a voyage?

Time charters involve a fixed daily/monthly cost irrespective of usage, while voyage charters have variable costs based on cargo tonnage and potential demurrage charges. The charterer is responsible for loading/discharging costs and potential demurrage charges for exceeding laytime at ports in the voyage charter.

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

Unlike a single voyage charter, which is a one-off agreement for a specific journey, a COA covers multiple shipments over an extended timeframe. It offers shippers more predictable costs and assured capacity, while carriers benefit from consistent and stable revenue.

What is an example of a contract of affreightment?

A Contract of Affreightment Example Imagine Company A wishes to transport 10,000 tons of grain from New York to London. They enter into a voyage charter agreement with Ship Owner B, specifying the terms, conditions, and payment methods. The contract outlines: The type and quantity of cargo (10,000 tons of grain)

What is the difference between consecutive voyage charter and contract of affreightment?

The distinction between these two contractual solutions can also be highlighted as that with consecutive voyages, the charterer is liable to employ the vessel for the consecutive voyages, while with COAs, the owner has a liability to employ the vessel during the intervals.

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What does contract of affreightment mean?

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.

What is the contract of affreightment common carrier?

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. Usually, the COA is not limited to one particular vessel, but operates as a series of voyage charters.

What is the difference between contract of affreightment and contract of carriage?

The contract of affreightment is between the charterer and the shipowner. The contract of carriage is between the carrier and the shipper. The charterer pays for the freight as per the contract. The carrier gets payment in return for the carriage as per the contract.