Contracts Of Affreightment are used when a shipowner or operator agrees to transport a given quantity over a fixed period of time. Unlike other charter parties. COA (Contract of Affreightment). Originally, contracts for the carriage of goods by sea, such as voyage charters and time charters, were termed “contracts of. In the context of Maritime law, a contract of affreightment is an agreement for carriage of goods by water. A contract of affreightment shall employ a bill of lading.

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Beaufort wind scale Force 6. It is still a relatively new development in shipping and there are still areas where problems can occur because users are not totally familiar with the issue. These parties are the shipper or buyer of the cargo who is often motivated by requiring certainty for the costs of transportation, and the ship-owner who is concerned with providing assured long term employment and flexibility for his owned or chartered in tonnage.

Provision is made for suspension of hire in certain cases if the vessel is disabled. Subject to licence being granted.

In the age of sailcargo and ships became lost more often than today. In such a case the master, acting for the shipowner or cargo-owner, as the case may be, sacrifices part of the ship or part of the cargo to save the rest of the ship and cargo from a common danger.

Wilson – Contract Of Affreightment – COA

If it is desired to give the shipowner a lien for demurrage or other charges, it must be expressly provided for. This gives the shipowner considerable flexibility. The most important example of illegality in the case of contracts of affreightment is when the contract involves trading with an enemy.

There are two main types of standard-form COAs:. Terms of a bill of lading as to the voyage, place of delivery, exceptions, excepted perils, and liability of the shipowner and his lien applies equally to charter-parties.


This article has multiple issues. When the claim is for detention and not demurrage the actual loss is recoverable, which may be more or may be less than the agreed rate affreigutment demurrage.

Contracts of Affreightment – Nomination Terms

Under a time charter-party, the shipowner largely parts with control of his ship. Exporters in Iran can sign such contracts with shipping company.

The law, however, interferes to some extent in regulating the effect to be given to contracts. The ship used for the carriage is not named, provided it meets the general description specified by the cargo owner. If the original ship which the shipowner, if he has entered into a COA, is contracf to make the next voyage, the shipowner can go to the spot market to charter-in tonnage.

In the late ls and early s the party which had control over quite a ccontract of specific cargo may have wanted it moved in mare than one shipment over a long period.

What is Contracts Of Affreightment (COA)? | Handybulk Shipping

In liner shipping it assumes a triple identity: The master remains responsible to the owner for the safety and proper navigation of the ship. In such cases the charter-party is obligated to load or discharge as quickly as possible. When a contract comes into existence usually to carry a large volume of cargo over a period of time between named sffreightment or regions, the named ship may be unable to carry the cargo over the necessary number of consecutive voyages.

These are made good to the party who has made the sacrifice or incurred the expense by a general average contribution, which is recoverable from the owners of the property saved in proportion to its value.

The words of the contract must always be considered with reference to these rules, which are founded on the well-established customs of merchants recognized and formulated by law. Ordinamenta et consuetudo maris Amalfian Laws Hanseatic League. One problem that can arise is to use individual charterparties for each shipment but these charterparties may not cover the points contained in the COA. JohnsonL.


Usually, contract talks in terms of journeys not limited to particular vessel. The charter-party is subject to exceptions similar to those in bills of lading. Example- Iran is one of the major exporters of crude oil to India.

What should the master look for when they join, and what should be his priorities? Certain rights and obligations arise out of the relationship between shipowner and cargo-owner in cases of extraordinary peril or urgency during a voyage.


This bill proved that cargo expenses were paid, but became mainly a proof that the cargo was really on board and thus become a negotiable property title. Nomination clauses will invariably set out the nomination procedure, ranging from who is to initiate the procedure to which party is to have a final say on the vessels required arrival date.

Admiralty court Vice admiralty court. Typically, other clauses provide for commissions paid to the brokers on signing the charter-party, the address commission paid to the agents for the Vessel at the port of contraxt, and other details. This page was last edited on 17 Decemberat The day that the notice is given is usually excluded from calculation of the period.

As each shipment affrdightment made, a new voyage charter may be entered into between the two parties. Even if the nomination was made after working hours on the Monday, it would seem that the provision that a working day to be a minimum of 8 working hours would be sufficient to show intention by the parties to give the charterers a whole working day to respond, as an exception to the general rule.