Affreightment
Affreightment is a contract for the carriage of goods by water, where ‘freight’ represents the price paid for the service of carriage.
Affreightment, often referred to as freight contracting or cargo shipping, is a vital process in the world of logistics and transportation. Furthermore, it involves the movement of goods from one location to another and the complex network of agreements and arrangements that make it all possible. We’ll delve into the intricacies of affreightment, exploring its types, importance, and the process from negotiation to delivery.
Types of Affreightment
Affreightment comes in various forms, each catering to different shipping needs. The two most common types are:
Voyage Charter: In this arrangement, a ship is hired for a single journey or voyage.
Time Charter: Here, the ship is hired for a specific period, often months or years.
Parties Involved in Affreightment
There are three main parties in affreightment:
Shipper: The entity that owns or supplies the goods for shipping.
Carrier: The party responsible for transporting the goods, often the shipowner.
Consignee: The recipient of the cargo at the destination.