Freight Contract: The Cornerstone of Maritime Transportation
Freight contract is the basic type of contract used in maritime transportation of goods. With this contract, the carrier undertakes to transport goods by sea, and the shipper undertakes to pay the freight cost in return. In this article, we will examine in detail the elements of the freight contract, its types, the obligations of the parties and the calculation of the freight cost.
Elements of a Freight Contract
• Carrier: The person who undertakes to transport goods by sea.
• Shipper: The person who concludes a freight contract with the carrier and undertakes to pay the freight cost.
• Goods: The goods or goods to be transported.
• Freight: Transport fee.
• Ship: It is the sea vessel in which the goods will be transported.
Types of Freight Contracts
Freight contracts are divided into several types according to the mode of transportation and the allocation status of the ship:
• Voyage Charter: It is a contract in which the carrier undertakes to carry goods at sea by allocating the whole, part or a certain part of the ship to the shipper in return for the freight.
• Time Charter: It is a contract in which the carrier undertakes to carry goods at sea by allocating all or part of the ship to the shipper for a certain period of time.
• Freight Charter: It is a contract in which the carrier undertakes to transport a certain amount of cargo from a certain port or ports to a certain port or ports.
Obligations of the Parties
• Carrier’s Obligations:
o Receiving and transporting goods
o Transport the goods carefully and carefully
o Delivering the goods at the port of destination
o Ensuring sea conditions suitable for the ship and cargo during transportation
• Shipper’s Obligations:
o Paying the freight cost
o Preparing the necessary documents and presenting them to the carrier
o Covering loading and unloading costs
Calculation of Freight Cost
Freight cost is determined according to the method of transportation, the size of the ship, the amount and type of goods to be transported, transportation time and port of destination. Freight cost can be freely determined by the parties in the contract.