Contracts Of Affreightment are used when a shipowner or operator agrees to transport a given quantity over a fixed period of time. Unlike other charter parties. COA (Contract of Affreightment). Originally, contracts for the carriage of goods by sea, such as voyage charters and time charters, were termed “contracts of. In the context of Maritime law, a contract of affreightment is an agreement for carriage of goods by water. A contract of affreightment shall employ a bill of lading.
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COA Contract of Affreightment. Originally, contracts for the carriage of goods by sea, such as voyage charters and time charters, were termed “contracts of affreightment”.
Some affteightment still call charters by this term. However, charters are for one named ship carrying out one or more voyages or let on hire or leased out for a period. When a contract comes into existence usually to carry a large contrcat of cargo over a period of time between named ports or regions, the named ship may be unable to carry the cargo over the necessary number of consecutive voyages.
If the ship could carry out consecutive voyages it would most probably have to return to the loading dontract in ballast and this ot increase the freight the owner would have to charge to make an acceptable contrzct on his investment. In the late ls and early s the party which had control over quite a volume of specific cargo may have wanted it moved in mare than one shipment over a long period.
He would enter into a contract with another party who did not have to be a shipowner to carry the complete or a very large quantity of cargo within the agreed period. For example, one party perhaps a shipowner may agree to carry all logs produced for export by a timber mill operator during and The cargo interest would guarantee that each year there would be, say, 10 shipments each of. The ports of loading and discharging do not have to be specified but it is most likely that the cargo movement would be between agreed ports.
The ship used for the carriage is not named, provided it meets the general contracr specified by the cargo owner. As each shipment is made, a new voyage charter may be entered into between the two parties. If the original ship which the shipowner, if he has entered into a COA, is unable to make the next voyage, the shipowner can go to contrct spot market to charter-in tonnage.
This gives the shipowner considerable flexibility. There are two main types of standard-form COAs:.
While the COA is not a charter for a named shipit can be considered to be a “hybrid” contract to carry goods by sea. It is still a relatively afferightment development in shipping and there are still areas where problems can occur because users are not totally familiar with the issue.
One problem that can arise is to use individual charterparties for each shipment but these charterparties may not cover the points contained in the COA.
Affreightment – Wikipedia
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contract of affreightment
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