Regarding the choice of chartering mode for carriages of cargoes

Abstract

The issue of choosing the mode of vessel chartering for cargo transportation, as one of the stages of goods delivery, is considered from the perspective of the person who, in accordance with the terms of delivery of goods, is responsible for the organization and execution of cargo transportation on the sea сomponent of transportation to the destination point. By engaging the vessel in cargo transportation, such a person concludes a charter contract in which he acts as the charterer. The possible options put up for consideration correspond to the modern practice of transporting of dry bulk cargoes ‒ this is the engagement of vessels on the terms of the voyage chartering (for carrying out a single lot of cargo) and the using of rented vessels for transportation. Differences in the essence of these modes of vessel chartering predetermine a different scope of rights and responsibilities attributed to the charterer. This, in turn, forms a different structure of his costs for engaging vessels under different chartering conditions. The paper sets out the principle procedure for the justification of the choice of the mode of vessel chartering, which is based on the determination of the component costs of the vessel charterer in order to involve them in the transportation of goods under different chartering modes. The proposed approach can be used to substantiate the mode of chartering that is more acceptable for him, which in this paper is assigned a less expensive mode of chartering of vessels in cargo transportation. The comparison of the modes of vessels chartering from these positions is proposed to be performed on the basis of the specific cost indicator ‒ the freight rate (for voyage chartering of vessels) and the cost of transporting cargo by a leased ship (for rented vessels on time charter terms). Currently, in addition to purely cost considerations, it should be borne in mind that the charterer's responsibilities for engaging vessels in the transportation of cargo in various modes of chartering are different ‒ from minimal responsibility for voyage chartering of vessels to organization of the voyage for renting a vessel for time charter on his own.