A Charter Agreement serves as the primary contractual instrument for vessel hiring arrangements in maritime commerce. This document type is essential when a party needs to hire a vessel for commercial purposes, whether for a specific voyage or a defined period. Under Indonesian jurisdiction, the agreement must comply with Law No. 17 of 2008 on Shipping and related maritime regulations, while also considering international shipping practices. The Charter Agreement covers crucial aspects such as vessel specifications, hire rates, operational responsibilities, trading limits, and regulatory compliance. It's particularly important in Indonesia's archipelagic context, where maritime transport plays a vital role in domestic and international trade. The document provides legal protection for both vessel owners and charterers while ensuring compliance with Indonesian maritime safety and commercial requirements.
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Key Requirements PROMPT example:
Charter Agreement
"I need a Charter Agreement for a bulk carrier vessel to transport coal between Indonesian ports, starting from March 2025 for a 12-month period, ensuring compliance with local cabotage laws and including specific provisions for loading/unloading at mining ports."
1. Parties: Identification of the shipowner/disponent owner and charterer, including their full legal names, registration details, and addresses
2. Background: Context of the charter arrangement, including brief description of the vessel and intended use
3. Definitions: Definitions of key terms used throughout the agreement, including technical shipping terms and Indonesian legal terms
4. Vessel Details: Comprehensive description of the vessel, including specifications, classification, and certificates
5. Charter Period: Duration of the charter, including delivery and redelivery terms
6. Charter Hire: Payment terms, hire rates, and payment mechanisms
7. Vessel Operation and Management: Responsibilities for vessel operation, crew management, and operational control
8. Bunkers and Consumables: Provisions regarding fuel, oils, and other consumables
9. Trading Limits: Geographical limitations and permitted trading areas under Indonesian jurisdiction
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Maintenance and Repairs: Responsibilities for vessel maintenance and repair procedures
12. Compliance and Regulations: Compliance with Indonesian laws and international maritime regulations
13. Termination: Grounds and procedures for early termination of the charter
14. Dispute Resolution: Procedures for resolving disputes under Indonesian law
15. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Performance Standards: Specific performance requirements and guarantees, used when chartering for specialized operations
2. Environmental Compliance: Additional environmental protection measures, important for operations in environmentally sensitive areas
3. Sub-chartering: Terms regarding sub-chartering rights, included when sub-chartering is permitted
4. Special Equipment: Provisions for special equipment or modifications, needed for specialized cargo or operations
5. Local Content Requirements: Specific provisions regarding Indonesian crew or local content requirements, when applicable
6. Ice Clause: Special provisions for operation in ice conditions, if relevant to the trading area
7. War Risks: Additional provisions for operation in high-risk areas, when applicable
8. Sanctions Clause: Compliance with international sanctions, important for international trade
1. Schedule 1 - Vessel Specifications: Detailed technical specifications of the vessel
2. Schedule 2 - Vessel Certificates: List of required certificates and documentation
3. Schedule 3 - Charter Hire Calculations: Detailed breakdown of hire calculations and payment terms
4. Schedule 4 - Delivery and Redelivery Inventory: Inventory of vessel condition and equipment at delivery/redelivery
5. Schedule 5 - Bunker Specifications: Technical specifications for acceptable bunker fuel
6. Schedule 6 - Performance Criteria: Detailed performance standards and measurement methods
7. Appendix A - Form of Hire Statement: Template for monthly hire statements
8. Appendix B - Port Schedule: List of approved ports and any port restrictions
Authors
Relevant legal definitions
Clauses
Relevant Industries
Maritime Transportation
Shipping
Logistics
International Trade
Oil & Gas
Mining
Commodities Trading
Marine Insurance
Maritime Services
Port Operations
Offshore Services
Energy
Relevant Teams
Legal
Maritime Operations
Commercial
Risk Management
Compliance
Finance
Technical Operations
Charter Operations
Marine Insurance
Vessel Management
Contract Administration
Documentation
Relevant Roles
Maritime Operations Manager
Chartering Manager
Shipping Director
Fleet Manager
Commercial Director
Legal Counsel
Risk Manager
Operations Director
Vessel Manager
Maritime Insurance Manager
Compliance Officer
Port Captain
Technical Superintendent
Commercial Manager
Contract Administrator
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