Maritime Contract & Charter Party Review: A Practical Checklist

Every shipping deal lives or dies by the contract behind it. Whether you are fixing a vessel under a charter party, agreeing a Memorandum of Agreement (MOA) for a sale, or signing a management contract, the document defines who carries the risk when something goes wrong. A disciplined review process turns dense legal language into clear commercial decisions. Below is a practical checklist drawn from common charter party and sale-and-purchase practice.

Identify the Parties, Vessel and Core Terms

Start with the basics, because errors here unravel everything after. Confirm the legal names of owner and charterer, the correct vessel particulars (IMO number, flag, class, deadweight and built year), and that the description matches the certificates. Check the hire or freight rate, the duration or voyage, the delivery and redelivery ranges, and the laydays and cancelling date. Make sure the governing law and arbitration seat are stated clearly. A standard form such as BIMCO, GENCON, NYPE or the Norwegian Saleform gives a reliable base, but the rider clauses are where the real negotiation happens.

Scrutinise the Clauses That Allocate Risk

Most disputes arise from a handful of clauses, so read them slowly. For charter parties, focus on:

—Laytime and demurrage — how laytime is counted, when it starts, and the demurrage rate that applies if loading or discharge runs over.

—Off-hire — the events that suspend hire, and whether they are exhaustive or open-ended.

—Seaworthiness and maintenance — the owner's continuing obligations and any due-diligence wording.

—Bunkers — quantity and price on delivery and redelivery, and quality specifications.