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Charter Agreement for the United Kingdom

Charter Agreement Template for United States

A Charter Agreement is a legally binding contract governed by U.S. maritime law that establishes the terms and conditions under which a vessel owner/operator provides their vessel for use by a charterer. This document outlines responsibilities, costs, duration, operational parameters, and compliance requirements under both federal and state maritime regulations, including the Jones Act and other relevant U.S. shipping laws.

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What is a Charter Agreement?

Charter Agreements are essential documents in maritime commerce, used when one party wishes to utilize a vessel owned or operated by another party. These agreements are subject to comprehensive U.S. maritime regulations, including federal and state laws, and must comply with various safety, environmental, and operational requirements. A Charter Agreement typically includes detailed provisions for vessel specifications, operational responsibilities, insurance requirements, and financial terms, serving as the primary contract governing the relationship between vessel owners/operators and charterers.

What sections should be included in a Charter Agreement?

1. Parties: Identification of the vessel owner/operator and charterer

2. Background: Context of the charter arrangement and purpose

3. Definitions: Key terms used throughout the agreement

4. Vessel Details: Specifications and description of the chartered vessel

5. Charter Period: Duration and timing of the charter

6. Charter Hire: Payment terms, rates, and schedule

7. Delivery and Redelivery: Conditions for vessel handover and return

8. Operating Costs: Allocation of expenses and responsibilities

9. Insurance: Required coverage and responsibilities

What sections are optional to include in a Charter Agreement?

1. Trading Limits: Geographic restrictions on vessel operation - include when specific geographic limitations apply

2. Fuel Provisions: Handling of bunker fuel arrangements - include for longer-term charters

3. Crew Provisions: Crew arrangements and responsibilities - include for bareboat charters

4. Environmental Compliance: Specific environmental requirements - include when operating in environmentally sensitive areas

What schedules should be included in a Charter Agreement?

1. Vessel Specification: Detailed technical specifications of the vessel

2. Condition Survey: Initial vessel condition report

3. Insurance Certificates: Copies of required insurance documentation

4. Crew List: Details of crew members and qualifications

5. Safety Management System: Safety procedures and protocols

6. Port Requirements: Specific requirements for designated ports

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses




































Industries

Jones Act: Part of the Merchant Marine Act of 1920, regulating maritime commerce in U.S. waters and between U.S. ports

Shipping Act of 1984: Federal regulation governing ocean shipping and maritime transportation services

Maritime Transportation Security Act: Legislation implementing maritime security requirements and measures for vessels and port facilities

DOT Regulations: Department of Transportation regulations governing transportation safety and operations

FAA Regulations: Federal Aviation Administration requirements (applicable for air charter operations)

OSHA Requirements: Occupational Safety and Health Administration standards for workplace safety and health

Uniform Commercial Code: Standardized set of business laws regulating commercial transactions in the United States

Clean Water Act: Federal law governing water pollution and quality standards in U.S. waters

Oil Pollution Act: Legislation addressing oil spill prevention, liability, and compensation

State Maritime Laws: State-specific regulations governing maritime activities within state waters

State Commercial Codes: State-level laws regulating commercial transactions and business operations

Coast Guard Regulations: U.S. Coast Guard requirements for vessel safety, security, and operations

Customs Regulations: U.S. Customs and Border Protection requirements for international maritime operations

Port Authority Regulations: Local port-specific rules and requirements for vessel operations and services

International Maritime Conventions: International treaties and agreements governing maritime operations in international waters

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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