The Time Charter standard

A time charter is a rental agreement in the shipping industry where one company (the charterer) hires a ship from another company (the shipowner) for a specific period. The charterer pays for the use of the vessel, while the shipowner remains responsible for the ship’s maintenance and crew. During this time, the charterer controls the ship's operations, including where it sails and what cargo it carries. This arrangement allows charterers to transport goods without owning a ship, while shipowners generate income from their vessels.