Contract of Affreightment

A Contract of Affreightment is an agreement between a shipowner and a cargo owner for the transportation of goods over a specified route and period. Instead of leasing an entire ship, the cargo owner hires a portion of the ship’s cargo space for multiple shipments, often over a longer timeframe. This contract covers terms such as loading, shipping, and delivery, ensuring efficiency and cost-effectiveness for large or repeated shipments. It is common in bulk transportation, like oil, grains, or minerals, providing flexibility and tailored logistics solutions for both parties.