A gross charter is a type of voyage charter in which the ship-owner is responsible for all expenses related to the operation of the vessel. This includes costs associated with loading, stowing, trimming, and discharging cargo. The primary obligation of the ship-owner under a gross charter is to cover these expenses as outlined in the charter contract.
The term "gross charter" is commonly used in maritime law, specifically in the context of shipping contracts. It is relevant in legal practices involving commercial shipping and transportation. Users may encounter gross charters when entering agreements for cargo transport, and they can benefit from using legal templates provided by US Legal Forms to draft or understand these contracts.
Here are a couple of examples of abatement:
Example 1: A shipping company enters into a gross charter agreement with a vessel owner. The owner is responsible for all costs associated with transporting goods from one port to another, including loading and unloading.
Example 2: A manufacturer hires a ship under a gross charter to deliver products overseas. The ship-owner manages all expenses related to the voyage, ensuring that the manufacturer only pays for the agreed freight rate. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Gross Charter | Ship-owner pays all operational expenses. | Focuses on the owner's financial responsibility. |
| Net Charter | Charterer pays for most expenses, with some exceptions. | Charterer assumes more financial responsibility. |
| Time Charter | Charterer pays for the hire of the vessel for a specified period. | Payment is based on time rather than specific voyages. |
If you are entering a gross charter agreement, it is crucial to understand the terms outlined in the contract. Ensure that all expenses are clearly defined. You can explore US Legal Forms for templates that can help you draft or review your charter agreements. If the situation is complex or if you have specific legal questions, consider consulting a legal professional for tailored advice.
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