Chartering (shipping)
Chartering is an activity within the shipping industry whereby a shipowner hires out the use of their vessel to a charterer. The contract between the parties is called a charterparty (from the French ""charte partie"", or "parted document"). The three main types of charter are: demise charter, voyage charter, and time charter. The charterer. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton basis over a certain route (e.g. for iron ore  between Brazil and China), in Worldscale points (in case of oil tankers) or alternatively may be expressed in terms of a total sum - normally in U.S. dollars - per day for the agreed duration of the charter. A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers. Depending on the type of ship and the  type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the shipowner and the charterer. Time charter equivalent is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types. Charter types. There are three main types of charter: Variations on these types include: Charterers' Liability Insurance. A Charterers' Liability Insurance is a type of insurance meant to protect shipping businesses from certain risk or liabilities. This could include  fines and breaking of a law, cargo or vessel damage and physical injuries including and up to death. Coverage of a Charterers' Liability Insurance can vary based on the charter-party type and additional inclusions or exclusions arranged prior to the purchase of the insurance.