In a voyage charter, who provides the cargo and who pays freight?

In a voyage charter, who provides the cargo and who pays freight?

• A. The charterer provides cargo; the freight is paid by the owner.
• B. The charterer provides cargo; freight is usually paid based on tons of cargo by the charterer.
• C. The shipowner provides cargo; freight is paid by the charterer.
• D. The shipowner provides cargo; freight is fixed per voyage.

Answer: (B)

In a voyage charter, the charterer supplies the cargo and controls its loading and delivery. The shipowner provides the vessel, and the charterer pays freight to the owner for moving that cargo. The typical basis for calculating this freight is per ton of cargo carried, reflecting the actual quantity transported. So the arrangement is: charterer provides cargo, freight paid by the charterer to the shipowner, usually on a per-ton basis. While lump-sum freight per voyage can occur in some contracts, the standard practice described here is per-ton freight paid by the charterer.

In a voyage charter, the charterer supplies the cargo and controls its loading and delivery. The shipowner provides the vessel, and the charterer pays freight to the owner for moving that cargo. The typical basis for calculating this freight is per ton of cargo carried, reflecting the actual quantity transported. So the arrangement is: charterer provides cargo, freight paid by the charterer to the shipowner, usually on a per-ton basis. While lump-sum freight per voyage can occur in some contracts, the standard practice described here is per-ton freight paid by the charterer.