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Charter Agreement for Malaysia

Charter Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian maritime law that establishes the terms and conditions for the charter of a vessel. The document outlines the responsibilities and obligations of both the shipowner and charterer, including operational requirements, financial terms, insurance obligations, and compliance with local and international maritime regulations. It incorporates specific provisions required under Malaysian jurisdiction while adhering to international maritime conventions and practices, ensuring proper risk allocation and clear operational guidelines for all parties involved.

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What is a Charter Agreement?

The Charter Agreement serves as the primary contractual document for vessel chartering arrangements under Malaysian jurisdiction. This document is essential when a party (charterer) wishes to hire a vessel from its owner for a specific period or purpose. The agreement comprehensively covers vessel specifications, operational parameters, financial terms, and risk allocation between parties. It must comply with Malaysian maritime law, including the Merchant Shipping Ordinance 1952 and related regulations, while also considering international maritime conventions. The Charter Agreement is particularly crucial for businesses involved in maritime trade, offshore operations, or requiring vessel services for specific projects, as it provides legal protection and clear operational guidelines for all parties involved.

What sections should be included in a Charter Agreement?

1. Parties: Identification of the shipowner and charterer, including full legal names, registration details, and addresses

2. Background: Context of the charter arrangement and brief description of the parties' intentions

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Vessel Details: Comprehensive description of the vessel, including specifications, classification, and certificates

5. Charter Period: Duration of the charter, including delivery and redelivery terms

6. Charter Hire: Payment terms, hire rate, and payment schedule

7. Vessel Operation and Management: Responsibilities for vessel operation, crew, and management

8. Trading Limits: Geographical areas where the vessel is permitted to operate

9. Bunkers and Consumables: Terms regarding fuel, oils, and other consumables

10. Insurance and Liability: Insurance requirements and allocation of risks between parties

11. Maintenance and Repairs: Responsibilities for vessel maintenance and repair procedures

12. Health, Safety and Environment: Compliance with health, safety, and environmental regulations

13. Force Majeure: Provisions for unforeseen circumstances and their handling

14. Termination: Conditions and procedures for agreement termination

15. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction details

16. Notices: Communication procedures and contact details for official notices

17. Entire Agreement: Confirmation that the document represents the complete agreement between parties

What sections are optional to include in a Charter Agreement?

1. Off-hire Provisions: Specific conditions when the vessel may be considered off-hire, used in time charter agreements

2. Special Equipment: Terms regarding specialized equipment if the vessel carries specific gear or machinery

3. War Risks: Additional provisions for operating in high-risk areas, if applicable

4. Ice Clause: Special provisions for operation in ice conditions, if relevant to the trading area

5. Sanctions Clause: Compliance with international sanctions, particularly relevant for international trade

6. Pest Control: Special provisions for pest control measures, particularly relevant for bulk cargo vessels

7. Internet and Communications Equipment: Provisions regarding onboard communication systems and internet access

8. Environmental Performance: Specific environmental performance requirements beyond standard regulations

9. Ballast Water Management: Specific requirements for ballast water management if operating in sensitive areas

What schedules should be included in a Charter Agreement?

1. Schedule 1 - Vessel Specifications: Detailed technical specifications of the vessel

2. Schedule 2 - Vessel Certificates: List and copies of all required certificates

3. Schedule 3 - Condition Survey: Detailed report of vessel condition at delivery

4. Schedule 4 - Inventory of Bunkers and Consumables: Detailed list of fuel, oils, and consumables at delivery

5. Schedule 5 - Insurance Policies: Details of required insurance coverage

6. Schedule 6 - Crew List and Qualifications: Details of crew members and their certifications

7. Schedule 7 - Trading Certificates: Copies of certificates required for intended trading areas

8. Schedule 8 - Form of Hire Statement: Template for monthly hire calculations and statements

9. Appendix A - Port Restrictions: List of ports and any specific restrictions or requirements

10. Appendix B - Emergency Response Procedures: Detailed emergency protocols and contact information

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

Malaysia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions














































Clauses







































Relevant Industries

Maritime

Shipping

Logistics

International Trade

Oil & Gas

Mining

Agriculture

Manufacturing

Energy

Construction

Relevant Teams

Legal

Operations

Commercial

Finance

Risk Management

Compliance

Technical

Marine Operations

Charter Operations

Insurance

Contract Administration

Relevant Roles

Maritime Lawyer

Ship Manager

Charter Manager

Commercial Director

Operations Manager

Fleet Manager

Risk Manager

Compliance Officer

Technical Superintendent

Chief Financial Officer

Contract Administrator

Marine Superintendent

Insurance Manager

Port Captain

Vessel Operator

Industries








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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