Charter Party (C/P)
The contract between shipowner and charterer setting out the terms of hiring a vessel or carrying a cargo.
- Category
- Chartering
- Abbreviation
- C/P
- Dictionary entry
- Charter Party
- Last reviewed
How it works
A charter party (often abbreviated C/P) is the negotiated contract governing the use of a ship. Standard forms, such as the dry-cargo and tanker pro-formas published by industry bodies, give the market a common starting point that the parties then amend with additional clauses.
The charter party fixes the commercial essentials: the rate, the cargo, the ports, laytime and demurrage, off-hire, and how risk and cost are split between owner and charterer. Disputes are usually resolved against the wording of the agreed C/P.
Where it shows up on The Maritime
Also known as: C/P, charterparty.
The short dictionary definition is at Dictionary entry: Charter Party. This page is the explainer.
Related terms
Voyage Charter
A contract to carry a specific cargo between named ports for a freight rate, with the owner paying the voyage costs.
Time Charter (T/C)
A contract to hire a fully crewed ship for a period at a daily rate, with the charterer directing employment and paying voyage costs.
Laytime
The time allowed under the charter party for the charterer to load and discharge the cargo without extra payment.
Demurrage
A daily penalty the charterer pays the owner for using more than the agreed laytime to load or discharge.
Laycan
The window of dates within which a ship must arrive and be ready to load, or the charterer may cancel.
More chartering terms
A plain-English reference definition: our own explanation of a standard shipping concept, not a licensed source or legal advice. See the full glossary or the broader maritime dictionary.
Last reviewed: .