Affreightment

(redirected from Contracts of Affreightment)
Also found in: Dictionary, Legal, Encyclopedia.
Related to Contracts of Affreightment: Time Charter, Cesser clause

Affreightment

An agreement between the owner of a ship and another party whereby the owner agrees to transport the other party's goods on that ship from and to certain stated locations. Affreightment is the equivalent of a lease; that is, the ship's owner rents space on the ship for the other party's goods.
References in periodicals archive ?
1) TCE results for the Suezmax and Aframax tanker fleets include realized results of synthetic time charters, FFAs, short-term time-charters and fixed-rate contracts of affreightment.
a) TCE results for the Suezmax tanker fleet include certain FFAs and fixed-rate contracts of affreightment that were entered into as hedges against several of the Company's vessels.
31, March 31, 2006 2005 2005 Spot Tanker Segment Very Large Crude Carrier Fleet Revenue days - - 90 TCE per revenue day - - $92,844 Suezmax Tanker Fleet Revenue days 360 336 540 TCE per revenue day (a) $54,147 $38,113 $38,865 Aframax Tanker Fleet Revenue days 2,925 3,261 4,321 TCE per revenue day $44,333 $48,021 $39,622 Large/Medium-Size Product Tanker Fleet Revenue days 948 1,076 647 TCE per revenue day $33,330 $31,758 $31,941 Small Product Tanker Fleet Revenue days 896 1,009 949 TCE per revenue day $17,169 $15,940 $16,411 (a) TCE results for the Suezmax tanker fleet include certain FFAs and fixed-rate contracts of affreightment that were entered into as hedges against several of the Company's vessels.
TBS's business model includes a balanced mixture of tariff based liner services, contracts of affreightment, time charters to customers, evergreen parcel and bulk cargo services and spot market businesses.
The handymax newbuildings being delivered to OMI are currently anticipated to operate on short-term time charters, contracts of affreightment and in the spot market.
Tankers International, through its contracts of affreightment with UNIPEC, a major oil importer into China, participates actively in this market, benefiting from the surge in demand on this trade route and the enhanced vessel utilization it affords.