Under a voyage charter the owner is paid for moving a defined cargo between defined ports and carries the operational risk of getting there. Under a time charter the charterer hires the vessel for a period, directs its employment, and takes on bunkers, port charges and the cost of time lost. The freight comparison between the two is meaningless without that context.
| Who bears it | Voyage charter | Time charter |
|---|---|---|
| Bunkers | Owner | Charterer |
| Port charges | Owner | Charterer |
| Time lost in port | Owner, subject to laytime and demurrage | Charterer |
| Crew and insurance | Owner | Owner |
| Commercial direction | Owner | Charterer |
| Suits | A single defined cargo | A programme, or a vessel on standby |
The right structure follows the shape of the requirement. A single parcel with a firm laycan usually belongs on a voyage basis. A programme of shipments, or a project needing the vessel on standby, often justifies time charter despite the added operational burden. What matters most is that laytime, demurrage and off-hire are drafted to match the actual operation rather than copied from the last fixture.
Harbour Strategies (HK) Limited · 18 March 2025
Editorial commentary by Harbour Strategies. Figures and regulatory details should be verified against primary sources before being relied upon.
