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5 Types of Rental Systems You Must to Know

In the shipping business, there are four types of contracts that are commonly used. Each type of contract has advantages and disadvantages. For this reason, it is necessary to carry out an analysis accompanied by direct practice to obtain maximum benefits. The type of contract or chartering chosen must be tailored to the needs and selection that best guides both parties, both the tenant and the owner. Currently in Thailand has many charter services providers, one of which is Isabella Yachts Phuket, Isabella Yachts Phuket is a charter service that provides catamaran charter Thailand at an affordable price. In general, there are 5 types of rental systems, including:

1. Voyage Charter

Voyage charter party is a contract to transport certain goods on a voyage that has been determined or in a series of trips. As with time-based charter, the vessel owner retains ownership rights to the ship and employs the master and crew.

2. Time Charter

Boat charter based on the period (time charter party) is a contract based on where the captain and the crew carry out their work for a certain period in return for the payment of rent. Based on a time charter party, the shipowner retains ownership rights to the ship and the captain and crew are employed by the shipowner. However, the charterer has the right to determine how the ship will be used provided that the use is still within the limits agreed in the agreement. In time charter parties, the risk of being late is with the renting party. Boat charter usually regulates certain events which occur one of these events will cause the boat charter to end, ie the charterer is no longer responsible for the charter of the ship during that period. These incidents included damage to the ship’s engine, insufficient crew, strike, and others.

3. Bareboat Charter

Boat rental based on demise (Bareboat charter party) is a contract to rent a ship as a chattel. The charterer is the owner of the ship temporarily in all respects (except for the ship’s owner). The captain and crew are the employees. To determine whether a charter is a demise charter party, this is a matter of interpretation determined by referring to the charter provisions of the ship. Another important indication is whether the master (master) is the employee of the shipowner or the charterer. The charterer has mastery rights over the ship.

4. Consecutive Voyage Charter / Contract of Agreement

Chartering system wherein chartering of vessels for several consecutive voyages

5. Liner Charter

A chartering system based on route, destination and wind direction. Liner charters affect what commodities or goods will be transported. In this charter, the system is calculated per container. All costs ranging from capital costs, operational costs and voyage costs are borne by the shipowner.

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