MARITIME TRADE CONTRACTS: LEGAL DETAILS OF SHIP CHARTER, TIME CHARTER, AND FREIGHT CONTRACTS

Maritime Trade Contracts Since maritime trade is a vital part of international trade, transactions in this field must be secured within a legal framework. Maritime trade contracts are agreements made between parties for this purpose, defining the rights and obligations related to transportation operations to be carried out by sea . Importance of Maritime Trade Contracts:  Legal Security: They prevent potential disputes or facilitate the resolution process by defining the rights of the parties.  Transparency: They ensure transparency by documenting all details of the transaction in writing.  Planning: They provide a roadmap for the smooth planning and monitoring of the transportation process .  Risk Management: Thanks to the terms included in the contracts, the parties can anticipate potential risks and take necessary precautions. Maritime Trade Contracts: 1. Ship Charter Contract: A ship charter contract is a type of contract that stipulates the use of a ship for a specific period in exchange for a rental fee . This contract is frequently used in maritime trade and is an important type of contract regulating the temporary transfer of the use of commercial vessels . The charterer is obliged to meet any claims that third parties may make against the lessor arising from the operation of the ship. Characteristics of a Ship Charter Agreement:  Temporary Right of Use: The charterer has the right to use the ship for the duration of the contract, but the ownership of the ship remains with the lessor.  Charter Fee: The charterer pays the lessor a charter fee in advance at specific intervals for the use of the ship.  Technical Management: In ship charter agreements, the technical management of the ship is mostly the responsibility of the lessor. However, the opposite can be agreed upon in the contract.  Liability: The responsibilities of the parties are specified in detail in the contract. For example, issues such as the maintenance, operation, and liability in case of damage to the ship are regulated in the contract. A ship charter agreement is an important type of contract that regulates the temporary transfer of the use of ships in maritime trade . These contracts ensure the safe and orderly conduct of maritime trade activities by defining the rights and obligations of the parties. 2. Time Charter Agreement: A time charter is a contract for renting a ship for a specific period, fully equipped, with the commercial management remaining with the charterer . Simply put, the ship owner,

A time charter involves renting a fully equipped vessel to a charterer for a specific period, during which the charterer uses the vessel for their own business. Characteristics of a Time Charter:  Specific Period: The contract stipulates that the vessel is chartered for a specific period.  Fully Equipped Vessel: The vessel must be delivered to the charterer by the lessor with all equipment and crew.  Commercial Management by the Charterer: All commercial decisions regarding the vessel's operations, routes, loading and unloading procedures are made by the charterer. In other words, commercial management is with the charterer. The technical management of the vessel is with the lessor.  Charter Fee: In return for using the vessel, the charterer pays the shipowner a charter fee in advance at specific intervals.  Additional Costs: Since the commercial management of the vessel is with the charterer, the charterer is responsible for all expenses incurred during the commercial operation of the vessel . A time charter means that a vessel is chartered for a specific period, and during this period, the commercial management of the vessel is with the charterer. This type of contract is frequently used in maritime trade, defining the rights and obligations of the parties and ensuring the safe and orderly conduct of maritime trade activities . In a time charter contract, the charterer, who leases the vessel for a specific period, is obligated to return the vessel to the lessor in a specified condition at the end of the contract period . This obligation is determined by the Turkish Commercial Code (TTK) and the specific terms of the contract. The charterer is also obligated to compensate the lessor for any damages incurred during the commercial operation of the vessel. Upon termination of the contract , the charterer is obligated to deliver the vessel in the specified manner and location. If the charterer delays in returning the vessel, they are required to pay double the charter fee due at the end of the contract. In conclusion, one of the most important obligations of the charterer in a time charter contract is to return the vessel in accordance with the contract terms. Failure to fulfill this obligation may result in various legal consequences for the charterer . Freight Contract: A freight contract is an agreement between a carrier and a shipper whereby the carrier undertakes to transport goods by sea from one place to another, and the shipper undertakes to pay a fee called freight for this service. Key Features of a Freight Contract:  Reciprocal Contract: It creates an obligation for both parties. The carrier is obligated to transport the goods , while the shipper is obligated to pay the freight.

• Freedom of Contract: The parties have the freedom to freely determine the terms of the contract within the limits set by law . • No Written Form Requirement: Although not legally required to be in writing, it is generally used in commercial practice. • Types: There are different types, such as voyage charters and time charters. Elements of a Freight Contract: • Parties: Carrier (ship owner or representative) and shipper (owner or representative). • Goods to be Carried: The type, quantity, and packaging of the goods to be transported are specified in the contract. If the shipper wishes to transport goods other than those specified , the carrier is obliged to transport these goods as well, provided that they do not complicate the carrier's situation. • Loading and Unloading Ports: The ports where the goods are loaded and unloaded are specified in the contract. • Freight: The fee to be paid for transportation. • Delivery Time: The dates on which the goods will be received and delivered are specified in the contract.  Risks and Responsibilities: The responsibilities of the parties regarding damages, delays, and other risks that may occur during transportation are specified in the contract. Types of Freight Contracts: Freight contracts are agreements used in maritime trade for the transportation of cargo from one place to another . These contracts are divided into different types according to the transportation conditions, the use of the ship, and other factors. Here are the most commonly used types of freight contracts: 1. Voyage Charter:  Definition: It is a contract that provides for the chartering of all or part of a ship for a specific voyage.  Features: o The carrier undertakes to transport the cargo from a specified port to another specified port . o Freight is usually determined according to the quantity or tonnage of the cargo. o The commercial management of the ship remains with the ship owner.  Areas of Use: It can be used for one-off shipments or for regular shipments on a specific route. 2. Time Charter:

 Definition: A contract for chartering a ship for a specific period.  Features: o The ship is delivered to the charterer fully equipped, and the charterer uses the ship for their own operations. o The charterer has control over the commercial management of the ship. o Freight is usually determined on a time basis.  Areas of Use: Preferred by companies with long-term transportation needs . 3. Bareboat Charter:  Definition: A contract for chartering a ship with only its hull, without crew and equipment.  Features: o The charterer covers all expenses of the ship (fuel, crew, insurance, etc.). o The charterer assumes full responsibility for the ship.  Areas of Use: Preferred by companies that do not want to own a ship but want to use it for a long period . In conclusion, freight contracts are important contracts that ensure the safe and efficient transportation of goods in maritime trade. The type of contract is determined according to the characteristics of the goods to be transported, the transportation route, and the agreement of the parties.

Law Student Intern Nursena İbanoğlu