Time Charter

A time charter hires a ship for a period of time, and the charterer pays a daily hire and decides where the ship goes within the agreed limits.

The idea

The charterer pays hire, usually per day, for the period. The ship operator keeps the ship crewed, maintained and insured. The charterer gives the voyage orders and normally pays for fuel and port costs.

Key terms

Delivery is when the ship is handed to the charterer and redelivery when it is handed back. If the ship cannot work, for example because of a breakdown, the hire can stop. That is called off-hire.

When it is used

When a charterer needs shipping capacity over time or wants control of the ship's movements. For a single trip on time charter terms see trip time charter.

Hire and off-hire

The charterer pays hire per day, in advance, for the time the ship is at its disposal. If the ship cannot work because of a breakdown, a crew problem or a repair, the hire stops for that time: this is called off-hire. The charter party lists which events are off-hire and how the lost time is counted.

Who pays what

The ship operator pays for the crew, the maintenance, the insurance of the ship and its running costs. The charterer pays for the fuel (bunkers), the port costs, the canal fees and any cargo handling, and decides the route and the cargo within the limits of the contract. The ship is delivered to the charterer at the start and redelivered at the end, with the fuel on board counted at both points.

Search ships for time charter
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.

Search ships for time charter

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.