Synonym of shipping
What is chartering?
In the field of transport,charteringis defined as a lease contract between two parties: the owner and charterer. The owner refers to the person owning the means of transport required by the charterer. The latter forges a professional partnership with a view to using these logistical means.
Charteringconcerns various business lines. Though it is most often used formaritime transport, it can also apply to air and land transport, whether road or rail. According to the contract’s specific features and performance conditions, freight (goods) organization may fall to either the charterer or owner.
It should be noted that freight is used both to define the goods transported and the charterer’s compensation. Its estimation depends on the distance to be travelled, delivery lead times, freight volume (size, weight) and packaging - not forgetting the transport means chosen.
Specificities of shipping, highlighting 6 main principles
Application conditions and contractual clauses vary depending on the means of transport. Each and every specificity helps better determine the responsibilities and commitments falling to each stakeholder. This may lead to freight subcontracting, or the settlement of operational and management fees. There are six main points to be remembered to fully understand whatcharteringentails.
It is a lease contract solely dedicated to the transport of goods (freight).
It can be used in all means of transport: sea, air, rail and road.
Freight volumes can be adjusted according to the customer’s needs. Batches, half-batches, pallets or bulk freight can be accounted for.
Its legal environment is set by the Transport Code.
Acharteringcontract lasts for one year.
Regarding service payment, the owner has a fare right over the goods being traded.
Examples and practical applications
In addition to the special clauses pertaining to eachcharteringcontract, the following performance stages are generally complied with:
Calling upon an owner, i.e. a company specialized incharteringand transport organization solutions;
Listing your needs, in relation to freight volume and whether transport will be needed regularly or occasionally;
Choosing your means of transport. Opting for a multimodal offer is also a possibility. This implies carrying out freight trade using different means of transport, such as maritime, land and air;
Implementation of the logistical plan with a view to using the leased elements;
Receiving and storing the customer’s goods;
Transporting the freight right up to the delivery destination;
Handing the goods over to a subcontractor, or transporting them to the final place of delivery.
Though certain differences exist between the various means of transport, these phases take into account the organization and overall logistics specifically required forchartering. These stages begin when the contract is signed, then move to the hand-over of the goods, followed by the use of the leased means of transport.
Chartering in figures
Transport organization, and more specificallychartering, counts an annual turnover of 21 billion euros in France. On a national scale, the market is shared between 2,700 companies. All transport sectors combined,charteringgenerates more than 67,000 jobs.
These statistics cover about 10% of all transport and logistical activities. This is equivalent to 200 billion euros in turnover every year, i.e. close to 10% of the GDP in France.
(Source:https://www.e-tlf.com/dossiers-tlf/chiffres-cles/)
Regulatory cornerstones
Law no.66-420 dated 18 June 1966 pertaining tocharteringandmaritime transportcontracts (https://www.legifrance.gouv.fr/)
Transport Code (https://www.codes-et-lois.fr/code-des-transports/)
Law no.881091 dated 1 December 1988 (http://www.assemblee-nationale.fr/)
