Contract of Affreightment (COA)

A contract of affreightment, or COA, is an agreement to carry a total quantity of cargo in several shipments over a period at an agreed freight.

How it works

The shipper agrees to ship a quantity of cargo, for example a number of tonnes in several shipments, and the ship operator agrees to carry it. The ship operator chooses which ships to use for each shipment, so it is not a charter of one named ship.

When it is used

For regular cargo flows, such as monthly shipments of ore, coal or grain, where the shipper wants freight and capacity fixed in advance.

COA on Shipfixing

A COA is arranged on request. Please contact Shipfixing. For a single cargo see voyage charter.

How a COA works

In a COA the ship operator agrees to carry a total quantity of cargo over a period, in a number of shipments, for example 300,000 tonnes in twelve monthly shipments. The ships are not named in advance: the ship operator uses any suitable ship in its fleet or on the market for each shipment. The charterer nominates the cargo and the dates for each shipment, usually some weeks ahead.

COA compared with a voyage charter

A voyage charter covers one cargo and a named ship. A COA covers many cargoes, and gives the charterer a fixed or formula-based freight for the period and the ship operator a steady flow of cargo. It suits miners, steel makers, grain companies and others who ship the same cargo regularly. The terms for each shipment follow a standard voyage charter attached to the COA.

Contact Shipfixing about COA
Shipfixing connects charterers and ship operators. We scan for suitable ships. Voyage requests for ships below 10,000 DWT need no signup and no membership.

Contact Shipfixing about COA

Related guides

Shipfixing is a digital platform. We are not a ship broker, ship agent or carrier, and we are not a party to any charter.