Which statement best describes a time charter?

Which statement best describes a time charter?

• A. The charterer provides the crew and the voyage costs, while ownership remains with the shipowner.
• B. The vessel and crew are leased for a set time; the owner still owns the ship, and the charterer selects ports and pays variable costs.
• C. The charterer charters the vessel for a single voyage and provides cargo.
• D. The owner bears all operating costs and the charterer pays a fixed hire.

Answer: (B)

In a time charter, the charterer gains the use of the vessel for a defined period while the ship remains owned by the owner and the crew is typically provided by the owner. The charterer controls the vessel’s commercial use—where it goes and what cargo it carries—within that charter period, and the charterer pays the running costs such as fuel and port charges. The hire covers the use of the ship for the specified time. This matches the statement that describes the vessel and crew being leased for a set time, with ownership staying with the owner, and the charterer selecting ports and paying variable costs. Other options describe different charter types or cost arrangements that aren’t time charters.

In a time charter, the charterer gains the use of the vessel for a defined period while the ship remains owned by the owner and the crew is typically provided by the owner. The charterer controls the vessel’s commercial use—where it goes and what cargo it carries—within that charter period, and the charterer pays the running costs such as fuel and port charges. The hire covers the use of the ship for the specified time. This matches the statement that describes the vessel and crew being leased for a set time, with ownership staying with the owner, and the charterer selecting ports and paying variable costs. Other options describe different charter types or cost arrangements that aren’t time charters.