Time Charter Equivalent is a standard performance index of the marine industry, which is mainly used to compare period-to-period changes in the performance of a shipping company despite changes in the mix of charter types. Only fully equipped ships, filled with fuel and in charge of impeccable work, are delivered; The ship must be in the same condition when re-delivering. Delivery of the vessel is made no later than 1730 on the scheduled day, provided the vessel is in operational condition; the vessel is re-delivered at 9 a.m. at the latest, in accordance with the ship`s accommodation agreement. The hidden defects of the vessel or its equipment, which the owner would not have known at the time of registration, as well as any anomalies that may be found after delivery, do not allow the charterer to reduce the charter charge. If, for some reason, it is not possible to use the vessel or if it is not possible to avoid exceeding the charter period, the base manager should be contacted for any further instructions. If the charter time is exceeded due to bad weather, the charterer bears all the costs resulting from such a situation for the owner. Therefore, it is recommended that the charterer plan a safe itinerary. The charterer again delivers the vessel to the agreed location and on the agreed date.
If the vessel does not return on time, the charterer guarantees that it will pay the daily fee for each delay of up to three hours and a triple amount of the daily charter fee for each delay of more than three hours plus the cost incurred by the owner due to the delay in delivery of the vessel. The delay can only be justified in a case of force majeure and the charterer must inform the owner immediately. Die mit den vorgenannten Kosten angefallenen Kosten (Kosten fer die Rucksendung des Schiffes, Reisekosten fer die nechsten Charterg-ste, etc.) are at the expense of the tenant. In some cases, a charterer may own cargo and use a boat broker to find a ship to deliver the load at a certain price, called freight rate. Freight rates can be expressed on a specific link (for example. B for iron ore between Brazil and China), in world points (for oil tankers) or, alternatively, on a total amount, normally in U.S. dollars, per day for the agreed duration of the charter. The charterer`s liability insurance coverage coverage may vary depending on the type of charter and the additional inclusions or exclusions agreed before the purchase of the insurance. To avoid the loss of the Charter, for costs that cannot be calculated immediately or failures that can be repaired later, the lessor takes the estimated amount of the policyholder`s warning fine, the exact calculation of which must be indicated within the reasonable time. Chartering is an activity within the marine industry in which a shipowner leases the use of his vessel to a charterer.
The contract between the parties is referred to as the “charter party” (the “charter party” or the French “sharing document”). The three main types of charters are: chartering, travel chartering, and on-time chartering.