Water bodies have been in use for commercial activities since the beginning of time, and today it has grown into becoming a key factor in making sure that goods reach all over the world. We see lots of maritime shipping companies coming into existence simply because of how dependent the world has gotten on them. This shows the massive contribution this industry has toward world trade. One of the most common businesses in this industry is of chartering vessels. Ship-owners who want to lease out their vessels, and charterers in need of a temporary vessel get into a contract of chartering. There are lots of trust-worthy vessel chartering companies in singapore and all around the world today.
Why chartering is better than owning
Owning a vessel does seem attractive and fancy but can easily empty your pockets because of the high maintenance it requires. Here are a few reasons why you should consider chartering instead –
- You do not have to bear fuel costs, port costs, etc, which can run pretty expensive sometimes
- Get your preferred vessel and crew, all-inclusive in the freight rate depending on the charter type
- Assets usually depreciate with each use in terms of obsolete engines and technology. With chartering, there is no need to worry about these expenses especially when it is lying idle
- Vessel charterers have vessels for all kinds of budgets, making it easy on your pocket
- You can keep upgrading to vessels with better and better amenities because renovating your vessel is expensive and usually difficult
Laws revolving around chartering
Since chartering involves a maritime contract, any legal issues relating to it is usually resolved by Admiralty courts. These courts govern nautical issues and sort out private maritime disputes, exercising their jurisdiction over maritime contracts, torts, etc. In England and Wales, this jurisdiction is exercised by the High court of Justice, whereas in the USA, the Federal District Courts have this jurisdiction. In Singapore, the general division of the High Court exercises admiralty law.
Having read the various benefits that chartering a vessel has over owning it and the laws governing such contracts, you can consider chartering as a viable option for the shipment of goods. You can find some of the best vessel chartering companies in Singapore that cater to all your shipping needs, ensuring a smooth sailing of your goods and the best experience.
