Time Charter lets you hire the vessel for a defined period (months or years), granting greater route flexibility and operational control. It suits supply chains with steady demand and varying ports.
Benefits
- Guaranteed vessel availability during the agreed period.
- Flexibility to adjust calls and routes as business needs evolve.
- More control over loading windows, itineraries and prioritization.
Practical example
A 6-month program between Mexico and Chile with recurring liftings: the charterer adjusts ports and laycans to match demand, cutting waiting times and improving customer service.
Good practices
- Track performance and fuel consumption closely.
- Clear off-hire, maintenance and bunker clauses.
- Proactive management of alternative ports and congestion.
Charterer responsibilities under Time Charter
Unlike Voyage Charter, in a Time Charter the charterer bears bunker costs and voyage planning. The owner retains technical and nautical control. This allocation of responsibilities must be clearly reflected in the contract — a critical point that many new operators underestimate.
Standard forms
Time Charter contracts are typically based on industry-recognized forms: NYPE 2015 (New York Produce Exchange), Baltime 1939, or Shelltime 4 for tankers. Each form has pre-defined clauses that can be amended via riders or addenda.