Millions of businesses are growing at a fast pace all around the world and so is the case with the shipping industry too. The shipping industry comprises of businesses that transport goods from one place to another. This can be through the land, water, air, or railways. When goods are shipped through waterways, it is termed maritime shipping and it includes business professions such as ship management, ship finance, brokering, vessel chartering, etc. Maritime shipping accounts for 80 percent of the world’s shipping industry, making it the backbone of world trade.
This article will mainly focus on chartering options available and how the vessel chartering companies in singapore ease it.
What is chartering?
Chartering is an activity associated with the shipping industry whereby the owner of a ship leases out his vessel to a charterer on a contract basis, for a certain period of time. This contract is called the ‘charterparty’. It tracks the exact rate, duration and terms agreed between the two parties.
Chartering is mainly of three types –
- Demise charter: Under this type, the lease of the ship/boat is given out without the provision of crew and maintenance. This leaves the entire financial and legal responsibility of the vessel on the charterer. It is a common type of chartering for tankers and bulk carriers.
- Voyage charter: Involves hiring a vessel and a crew for shipment between ports. The owner bears the port, fuel, and crew costs while the charterer pays a freight charge for the hire during the allotted laytime.
- Time charter: Involves hiring a vessel for a specified time period, with the owner bearing all expenses. However, the charterer gets to choose the routes, ports, and speed of the vessel, leaving him with full operational control of the vessel.
A country like Singapore is well-known for having the busiest business ports in the whole of Asia. With thousands of shipments happening in and out, logistics planning plays a key role. This is when it becomes important to find reliable Logistics companies. Today, there are lots of well-reputed and trusted vessel chartering company companies in Singapore that ease your chartering experience and let you explore the various charter options with them. All you have to do is have your needed documents ready and leave the rest to them. So ensure that the company you are chartering from provides you charter options and commits to reliability.