Charter Party Agreements

What are the main types of Charter Parties?

The main types are Voyage Charter (for a specific trip), Time Charter (for a set period), and Bareboat Charter (leasing the vessel without crew).

Can I modify standard BIMCO or other maritime contract forms?

Yes, standard forms are templates. It is highly recommended to have a lawyer add custom riders to fit your specific requirements.

Which law governs Charter Parties signed in Georgia?

Usually, the parties choose the governing law, but if the vessel is in a Georgian port, the Maritime Code of Georgia will apply to many practical issues.

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Charter Party agreements are the foundation of the maritime business, regulating the terms of hiring a vessel for cargo transportation. This is a complex legal document where the parties — the vessel owner and the charterer — agree on all the details of the voyage. In Georgia, where the maritime sector is one of the leading sectors of the economy, the correct formulation of charter agreements is critically important to avoid financial losses and long-term disputes. The Legal.ge platform offers access to experienced lawyers who specialize in drafting, analyzing, and resolving disputes related to Charter Parties.

What does the service related to Charter Party Agreements cover?

Professional lawyers provide a full range of services, starting from the negotiation stage to the enforcement of the agreement. The service includes: preparation of different types of charters (Time Charter, Voyage Charter, Bareboat Charter); adaptation of standard forms (e.g., GENCON, NYPE, BALTIME) to specific needs; development of additional terms (Riders); and detailed descriptions of freight, demurrage, and despatch terms. Specialists also assess risks associated with the technical condition of the vessel, crew responsibility, and force majeure circumstances to ensure the client has maximum legal guarantees.

Common real-world scenarios

Misunderstandings often arise in charter relations. A typical scenario is a dispute over demurrage (fines for delays) when unloading cargo at the port is delayed and the parties cannot agree on who is at fault for the delay. Another case is the issue of "seaworthiness," where the charterer claims that the cargo was damaged or the voyage was delayed due to the vessel's technical malfunction. Disputes over the quality and quantity of fuel (bunkers) during a time charter are also common. In such cases, a qualified lawyer helps the parties with the exact interpretation of contract clauses and the preparation of evidence.

Georgian Legal Framework

Charter Party agreements in Georgia are regulated by the Maritime Code of Georgia, which contains special chapters on maritime transportation and vessel hiring. The Code defines the imperative obligations of the parties that cannot be changed by the contract. In addition, the Civil Code of Georgia is used in the part of contract law. It is important to note that Charter Parties often contain an arbitration clause (e.g., London Maritime Arbitration), but knowledge of Georgian legislation is necessary for vessel arrest or administrative issues arising at the port.

Step-by-step process when working with a specialist

Collaboration starts with clarifying the client's business objectives and selecting the appropriate charter type. The lawyer prepares a draft agreement or reviews a document provided by the counterparty. In the second stage, the terms are agreed upon (Recap) and the final document is signed. During the duration of the agreement, the lawyer consults on current issues, such as sending notices (NOR) or formalizing protests. In the event of a dispute, the specialist prepares a position for negotiations or arbitration proceedings.

Why choose Legal.ge?

Through Legal.ge, you are given the opportunity to find lawyers who have experience in international maritime practice. A Charter Party is not a simple form; it requires attention to detail and knowledge of market specifics. Our platform's specialists will help you avoid "hidden" costs and protect your business from unnecessary risks. Find your maritime law expert on Legal.ge today.

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