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Charter Agreement Template for New Zealand

A Charter Agreement is a formal contract used in New Zealand's maritime industry that establishes the terms and conditions for the charter (lease) of a vessel. The agreement, governed by New Zealand maritime law including the Maritime Transport Act 1994 and Contract and Commercial Law Act 2017, outlines the responsibilities and obligations of both the vessel owner and charterer. It covers crucial aspects such as charter period, payment terms, operational requirements, maintenance responsibilities, insurance obligations, and liability allocation. The document ensures compliance with New Zealand's maritime regulations while protecting the interests of all parties involved in the charter arrangement.

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What is a Charter Agreement?

A Charter Agreement serves as the primary contractual document for vessel leasing arrangements in New Zealand's maritime sector. This document is essential when a party (the charterer) wishes to lease a vessel from its owner for a specified period or purpose. The agreement must comply with New Zealand's maritime regulations, including the Maritime Transport Act 1994 and related legislation. It typically includes comprehensive details about the vessel, charter terms, operational requirements, maintenance responsibilities, and financial arrangements. The Charter Agreement is particularly important in commercial shipping, offshore operations, tourism, and fishing industries, where vessel leasing is common practice. The document protects both parties' interests by clearly defining their rights, obligations, and remedies under New Zealand law.

What sections should be included in a Charter Agreement?

1. Parties: Identification of the Owner/Lessor and Charterer/Lessee with full legal names and addresses

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

3. Definitions: Defined terms used throughout the agreement

4. Vessel Details: Comprehensive description of the vessel including specifications, registration details, and condition

5. Charter Period: Duration of the charter, including start and end dates, delivery and redelivery conditions

6. Charter Hire and Payment Terms: Charter rates, payment schedule, method of payment, and late payment consequences

7. Operating Costs and Expenses: Allocation of costs including fuel, port charges, and operational expenses

8. Vessel Operations and Employment: Permitted use, trading limits, and operational restrictions

9. Maintenance and Repairs: Responsibilities for vessel maintenance, repairs, and dry-docking

10. Insurance: Required insurance coverage, responsibilities for insurance procurement and maintenance

11. Indemnification: Mutual indemnification provisions and liability allocation

12. Default and Termination: Events of default, remedies, and termination procedures

13. Force Majeure: Circumstances beyond parties' control and their consequences

14. Dispute Resolution: Process for resolving disputes including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Charter Agreement?

1. Crew Provisions: Used when the charter includes crew services, detailing crew requirements, responsibilities, and costs

2. Special Operations: Included when the vessel will be used for specific operations requiring additional terms

3. Environmental Compliance: Additional environmental requirements for sensitive operations or areas

4. Security Requirements: Used when specific security measures are required for the charter

5. Sub-chartering Rights: Included when sub-chartering is permitted, specifying conditions and restrictions

6. Purchase Option: Used when the charterer has an option to purchase the vessel

7. Special Equipment: When specific equipment is provided or required as part of the charter

8. Geographic Restrictions: Specific limitations on vessel operation areas beyond standard trading limits

What schedules should be included in a Charter Agreement?

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

2. Schedule 2 - Condition Survey: Detailed report of vessel condition at delivery

3. Schedule 3 - Inventory List: List of equipment, spares, and supplies included in the charter

4. Schedule 4 - Charter Hire Calculations: Detailed breakdown of charter hire and payment terms

5. Schedule 5 - Insurance Requirements: Specific insurance requirements and minimum coverage levels

6. Appendix A - Operating Procedures: Standard operating procedures and requirements

7. Appendix B - Safety Management System: Safety procedures and requirements

8. Appendix C - Compliance Certificates: Copies of relevant vessel certificates and documentation

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

New Zealand

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions


















































Clauses





































Relevant Industries

Maritime Transportation

Shipping

Offshore Services

Fishing Industry

Tourism and Recreation

Oil and Gas

Mining

Marine Construction

Port Operations

Maritime Logistics

Aquaculture

Marine Research

Relevant Teams

Legal

Operations

Commercial

Finance

Risk Management

Compliance

Marine Operations

Contract Administration

Business Development

Insurance

Technical Services

Relevant Roles

Maritime Lawyer

Ship Owner

Charter Manager

Fleet Manager

Maritime Operations Director

Vessel Operations Manager

Commercial Director

Contract Administrator

Risk Manager

Maritime Insurance Specialist

Compliance Officer

Port Captain

Marine Superintendent

Chief Financial Officer

Legal Counsel

Business Development Manager

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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