Charterparty Forms: Types, Uses, GENCON, NYPE and BARECON

Charterparty Forms: Types, Uses, and Common Shipping Contracts

Charterparty forms are the contractual foundation of ship chartering. They set out the commercial and legal framework under which a ship is employed, cargo is carried, freight or hire is paid, and the responsibilities of shipowners and charterers are allocated. In dry cargo chartering, tanker chartering, offshore employment, and bareboat arrangements, the form selected at the negotiation stage can influence almost every later issue, from laytime and demurrage to off-hire, bunkers, insurance, trading limits, cargo claims, and dispute resolution.

Many charterparty forms used in international shipping have been developed, approved, adopted, or recommended by recognised shipping organisations. BIMCO (Baltic and International Maritime Council) is one of the most influential organisations in this field, and many of the best-known standard forms used in daily chartering practice are connected with BIMCO or other established industry bodies. These standard forms are preferred because they provide a familiar structure, reduce uncertainty, and give the parties a tested starting point for negotiation.

A standard charterparty form does not remove the need for careful negotiation. Clauses are frequently amended by riders, recap terms, additional clauses, or bespoke wording. However, using a recognised form gives shipowners, charterers, shipbrokers, operators, insurers, lawyers, and claims handlers a common contractual language. This is especially important in dry bulk shipping, where fixtures are often negotiated quickly and the commercial details must later be converted into a complete written charterparty.

Official, Agreed, Adopted, and Recommended Charterparty Forms

An official charterparty form is a document approved, issued, or sanctioned by a recognised industry organisation. The main purpose of an official form is to provide balanced wording that reflects established shipping practice. A well-drafted form should not unfairly favour one side, although certain forms may be regarded in the market as more shipowner-friendly or charterer-friendly depending on the trade and the clauses used.

Agreed Charterparty: An agreed charterparty form is one approved jointly by organisations representing the commercial interests of both shipowners and charterers, or by a trade group connected with a particular cargo or route. When a form is agreed for a specific trade, the intention is usually that the printed wording should remain substantially unchanged. Examples historically associated with particular trades include Polcoalvoy and Sovcoalvoy.

Adopted Charterparty: An adopted charterparty form is a form originally agreed by one organisation or group but later accepted for use by another organisation. For example, a form agreed by a national shipping body and a group of charterers may later be adopted by BIMCO or another maritime organisation for wider use. Once adopted, members may be encouraged or expected to use that form where the trade and circumstances are suitable.

Recommended Charterparty: A recommended charterparty form is normally used where there is no dedicated form for a particular cargo, route, or commercial arrangement. In that situation, an organisation may recommend a general form, such as GENCON, as a practical basis for negotiation. Recommended forms are valuable because they help parties avoid poorly drafted private forms or outdated wording that may create unnecessary disputes.

In many chartering negotiations, the choice of charterparty form is influenced by the charterer, especially where the charterer has a regular cargo programme, internal legal requirements, or a preferred trade form. Nevertheless, shipowners and shipbrokers should always review the selected form carefully, because the form determines the starting point for risk allocation.

Commonly Used Charterparty Forms

Charterparty forms can be divided into three principal categories: voyage charter forms, time charter forms, and bareboat charter forms. Each category reflects a different commercial structure and a different allocation of operational control. Under a voyage charter, the shipowner agrees to carry cargo between agreed ports or ranges. Under a time charter, the charterer hires the ship for a period and directs the commercial employment of the ship within agreed limits. Under a bareboat charter, the charterer takes possession and full operational responsibility for the ship, normally without crew, stores, or operating services from the shipowner.

1- Voyage Charter Forms

GENCON: GENCON is one of the most widely recognised general-purpose voyage charterparty forms for dry cargo shipments. It is commonly used for bulk commodities and general cargo trades where the ship is employed for one voyage or a series of voyages. GENCON provides a framework for freight, cargo description, loading and discharging ports, laytime, demurrage, payment, bills of lading, and dispute resolution.

ASBATANKVOY: ASBATANKVOY is a standard tanker voyage charterparty form widely used for oil, petroleum products, and other liquid cargoes. Tanker voyage forms require particular attention to pumping, hoses, cargo temperature, contamination, berth availability, documentation, and terminal procedures.

SYNACOMEX: SYNACOMEX is a voyage charter form associated with grain trades. Grain cargoes often require careful attention to loading standards, cargo condition, fumigation, trimming, stowage, phytosanitary documentation, and port regulations.

AMWELSH: AMWELSH, often referred to in connection with coal and ore trades, is a voyage charter form used for bulk cargo movements. Forms used in coal and ore trades usually require detailed clauses dealing with loading rates, discharge rates, port congestion, demurrage, shifting, cargo handling, and weather interruptions.

2- Time Charter Forms

New York Produce Exchange (NYPE): NYPE is one of the most important time charter forms in the dry cargo market. NYPE 1993 and NYPE 2015 are both well known, with NYPE 2015 representing a modernised version developed for contemporary shipping practice. NYPE time charters typically deal with delivery, redelivery, hire, off-hire, speed and consumption, trading limits, cargo exclusions, bunkers, bills of lading, indemnities, liens, and dispute resolution.

BALTIME: BALTIME is another standard time charter form used in dry cargo shipping. It is generally regarded as a simpler and more traditional form, and in many markets it has been viewed as more favourable to shipowners than NYPE. BALTIME may still be seen in certain trades, although many fixtures today are concluded on NYPE or heavily amended time charter forms.

SHELLTIME: SHELLTIME is a standard time charter form used in tanker employment. It is designed for the commercial and operational realities of tanker shipping, including oil major requirements, cargo handling, vetting, safety, trading limits, off-hire, bunkers, and terminal-related obligations.

ASBATIME: ASBATIME is a time charter form introduced by ASBA (Association of Ship Brokers and Agents). It may be used in dry cargo or tanker contexts, depending on the commercial requirements and the amendments agreed by the parties.

3- Bareboat Charter Forms

BARECON: BARECON is the best-known standard bareboat charter form developed by BIMCO. In a bareboat charter, the charterer takes possession and control of the ship and normally assumes responsibility for crewing, maintenance, insurance, repairs, bunkers, trading, and technical operation. BARECON 2017 is the latest edition of this form.

Demise Charter Party: A demise charter party is another term commonly associated with bareboat chartering. Under this structure, the charterer effectively steps into the role of operator for the charter period, while the registered ownership of the ship remains with the shipowner.

SUPPLYTIME: SUPPLYTIME is a standard form used in the offshore support ship sector. Although offshore contracts have their own commercial and operational character, they also require clear clauses dealing with employment, safety, liabilities, knock-for-knock risk allocation, fuel, waiting time, and operational instructions.

These standard forms exist because no single charterparty can properly serve every cargo, route, ship type, and commercial structure. A dry bulk voyage charter, a tanker time charter, a project cargo movement, and a bareboat financing arrangement all involve different risks. The correct form should therefore be selected according to the intended employment, not merely because it is familiar.

What Is the Most Common Charterparty Form?

There is no single charterparty form that is the most common in every sector of shipping. The answer depends on whether the fixture is a voyage charter, time charter, or bareboat charter, and also on the ship type, cargo, trade route, and market custom. In dry bulk shipping, GENCON is frequently used for voyage charters, NYPE is highly important for time charters, and BARECON is the leading form for bareboat charter arrangements.

  1. Voyage Charters:
  • GENCON: GENCON is widely used as a general-purpose voyage charterparty form for dry cargo shipments. It is suitable for many bulk commodity trades and is often chosen where there is no more specific trade form.
  1. Time Charters:
  • New York Produce Exchange (NYPE): NYPE is one of the dominant time charter forms in the dry cargo sector. It is commonly used when a charterer hires a ship for a defined period rather than for a single voyage.
  1. Bareboat Charters:
  • BARECON: BARECON is the standard form most closely associated with bareboat chartering, where the charterer obtains possession and operational control of the ship.

The commercial importance of these forms is that they are familiar to the market. Shipbrokers can negotiate recaps around them, lawyers can identify risk points quickly, insurers understand the liability structure, and claims handlers can assess disputes against established wording and practice.

Outline of the Most Common Charterparty Forms

The most commonly discussed standard forms in dry cargo chartering are GENCON for voyage charters, NYPE for time charters, and BARECON for bareboat charters. Each form has a different function and should be understood in its own commercial context.

  1. GENCON Charterparty Form
  2. New York Produce Exchange (NYPE) Charterparty Form
  3. BARECON Charterparty Form

1- Outline of GENCON Charterparty Form

The GENCON Charterparty Form is a standard voyage charterparty used for the carriage of cargo from one port or range to another. It is designed for situations where the shipowner provides the ship and earns freight for performing the agreed voyage. The charterer normally provides the cargo and is responsible for loading and discharging obligations as agreed in the charterparty.

GENCON usually deals with the essential commercial points of a voyage fixture, including the identity of the parties, ship description, cargo, loading port, discharging port, freight, laytime, demurrage, despatch, Notice of Readiness, lien, bills of lading, exceptions, law, and arbitration. Because voyage charters are closely connected with port operations, GENCON negotiations often focus heavily on laytime wording, commencement of laytime, weather exceptions, demurrage rate, and responsibility for delay.

Simplified outline of a GENCON Charterparty Form:

  1. Date and Place: The date and location where the charterparty is concluded or signed.
  2. Shipowner: The name and address of the shipowner or the shipowner’s authorised representative.
  3. Charterer: The name and address of the charterer or the charterer’s authorised representative.
  4. Ship: The name, type, flag, class, deadweight, capacity, gear, speed, and other relevant specifications of the ship.
  5. Cargo: The cargo description, quantity, tolerance, packing, stowage requirements, and any special handling or safety requirements.
  6. Loading Port: The named loading port, berth, anchorage, range, or loading place.
  7. Discharging Port: The named discharging port, berth, anchorage, range, or discharging place.
  8. Laydays: The agreed period during which the ship must arrive and be ready for loading.
  9. Cancelling Clause: The date or circumstances giving the charterer a right to cancel if the ship is not ready within the agreed time.
  10. Freight Rate: The amount payable for the carriage of cargo, including freight basis, commissions, taxes, or additional charges where applicable.
  11. Payment Terms: The timing, method, currency, and conditions for payment of freight.
  12. Laytime: The time allowed to the charterer for loading and discharging operations.
  13. Demurrage: The agreed compensation payable to the shipowner when allowed laytime is exceeded.
  14. Despatch: The agreed compensation payable to the charterer if cargo operations are completed within the allowed laytime, where despatch is agreed.
  15. Notice of Readiness (NOR): The requirements for tendering notice that the ship is ready to load or discharge.
  16. Liability and Insurance: Provisions dealing with risk, responsibility, insurance, and claims.
  17. Exceptions and Force Majeure: Clauses addressing events that may excuse or affect performance, where applicable.
  18. Arbitration: The agreed procedure and forum for dispute resolution.
  19. Governing Law: The law governing interpretation and enforcement of the charterparty.
  20. Additional Clauses: Rider clauses or bespoke terms agreed by the parties.

This outline is a practical guide only. The final wording of any GENCON-based fixture should always be adapted to the cargo, trade, port conditions, and negotiated recap.

What Is GENCON 2022?

GENCON 2022 is the latest edition of BIMCO’s general-purpose voyage charterparty form. GENCON has long been associated with dry cargo voyage chartering and has been used globally for many types of bulk and general cargo movements. Earlier editions, including GENCON 1976 and GENCON 1994, became familiar to generations of shipbrokers and shipping professionals.

The 2022 revision modernised the form for contemporary shipping practice. Since the 1994 edition, the shipping industry has become more complex, more regulated, and more exposed to sanctions, compliance obligations, security issues, environmental requirements, piracy risks, emissions schemes, and documentary controls. GENCON 2022 was therefore developed as a more comprehensive and modern form, giving parties a clearer basis for negotiation.

GENCON 2022 also reflects BIMCO’s wider approach to clearer drafting and more practical contract structure. While parties may still amend the form, the modern edition is intended to reduce ambiguity and provide more complete treatment of issues that commonly arise in voyage chartering. To download or review the official GENCON 2022 Charter Form, please check www.bimco.org

2- Outline of New York Produce Exchange (NYPE) Charterparty Form

The New York Produce Exchange (NYPE) Charterparty Form is a standard time charter document used mainly in dry cargo shipping. Under a time charter, the charterer hires the ship for an agreed period and pays hire, usually calculated daily or monthly. The shipowner remains responsible for the ship’s technical management and crew, while the charterer directs the commercial employment of the ship within the limits of the charterparty.

NYPE is important because time chartering creates a continuing commercial relationship. Unlike a voyage charter, where the central obligation is to perform a voyage, a time charter requires ongoing cooperation between shipowner and charterer. Issues such as delivery, redelivery, off-hire, speed and consumption, bunkers, cargo orders, routeing, bills of lading, lawful employment, safe ports, and indemnities can become highly significant.

Simplified outline of an NYPE Charterparty Form:

  1. Date and Place: The date and location where the agreement is concluded or signed.
  2. Shipowner: The name and address of the shipowner or authorised representative.
  3. Charterer: The name and address of the charterer or authorised representative.
  4. Ship: The ship’s name, type, flag, class, capacity, speed, consumption, gear, holds, and other technical details.
  5. Duration of Charter: The agreed period of employment, including tolerance, options, or extension rights.
  6. Delivery and Redelivery: The place, range, timing, notices, and condition in which the ship is delivered and redelivered.
  7. Hire Rate: The amount payable by the charterer for the use of the ship.
  8. Payment Terms: The currency, timing, method, grace period, and consequences of late payment.
  9. Trading Limits: The permitted geographical areas, excluded zones, cargo restrictions, and lawful employment limits.
  10. Ship Maintenance: The shipowner’s obligation to maintain the ship, crew, certificates, class, and technical condition.
  11. Bunkers: The quantity, price, quality, specification, and delivery/redelivery bunker arrangements.
  12. Subletting and Assignment: The extent to which the charterer may sublet or assign the ship’s employment.
  13. Owners’ and Charterers’ Liens: Rights of lien over cargo, sub-freights, hire, or other sums due under the charterparty.
  14. Insurance: Hull and machinery, protection and indemnity, war risks, and other relevant insurance obligations.
  15. Indemnity: Protection for losses arising from compliance with charterers’ orders, bills of lading, cargo claims, or other operational matters.
  16. Off-Hire: Circumstances in which hire may stop because the ship is prevented from performing the service required.
  17. Arbitration: The agreed mechanism and forum for resolving disputes.
  18. Governing Law: The law governing the charterparty.
  19. Additional Clauses: Bespoke clauses dealing with sanctions, emissions, piracy, war risks, trading exclusions, or other commercial requirements.

This outline is only a simplified guide. Time charter disputes often turn on precise wording, and the parties should ensure that any amendments are consistent with the commercial recap. To download or review the NYPE 2015 (New York Produce Exchange) Charterparty Form, please check www.bimco.org

3- Outline of BARECON Charterparty Form

The BARECON Charterparty Form is used for bareboat or demise chartering. In a bareboat charter, the charterer takes possession and control of the ship and operates the ship for the charter period. The arrangement is closer to a lease than an ordinary voyage or time charter. The charterer normally provides the crew, pays operating expenses, arranges maintenance, and assumes substantial responsibility for the ship’s commercial and technical operation.

BARECON is often used in long-term employment, ship financing structures, sale and leaseback arrangements, purchase options, offshore employment, and transactions where the charterer requires extensive control over the ship. Because the risk transfer is much deeper than under a voyage or time charter, the clauses must be reviewed carefully.

Simplified outline of a BARECON Charterparty Form:

  1. Date and Place: The date and location where the bareboat charter is concluded or signed.
  2. Shipowner: The name and address of the shipowner or authorised representative.
  3. Charterer: The name and address of the charterer or authorised representative.
  4. Ship: The name, flag, class, age, technical specifications, certificates, equipment, and condition of the ship.
  5. Duration of Charter: The agreed period of bareboat employment and any extension or purchase options.
  6. Delivery and Redelivery: The place, timing, inspection requirements, and physical condition for delivery and redelivery.
  7. Hire Rate: The amount payable for the use of the ship during the charter period.
  8. Payment Terms: The timing, currency, method, security, and consequences of non-payment.
  9. Inspections and Inventories: The inspection procedure and inventory of equipment, stores, spare parts, and documents.
  10. Ship Maintenance: The charterer’s obligation to maintain, repair, dry-dock, class, and operate the ship properly.
  11. Bunkers: Arrangements for fuel, lubricants, and other consumables at delivery and redelivery.
  12. Crew and Operations: The charterer’s responsibility for crew employment, management, safety, and lawful operation.
  13. Insurance: Hull and machinery, protection and indemnity, war risks, mortgagee interests, and other required covers.
  14. Indemnity: Allocation of liabilities, claims, losses, and expenses arising during the charter period.
  15. Mortgage: Clauses dealing with existing mortgage interests, lender consent, assignment, and restrictions on encumbrances.
  16. Subletting and Assignment: Conditions governing any sub-charter, assignment, or transfer of rights.
  17. Regulatory Compliance: Obligations relating to class, flag, safety, sanctions, emissions, environmental rules, and trading requirements.
  18. Arbitration: The agreed procedure for resolving disputes.
  19. Governing Law: The law governing the interpretation and enforcement of the agreement.
  20. Additional Clauses: Any bespoke provisions agreed for financing, purchase options, emissions compliance, technical management, or special employment.

This outline is only a practical summary. Bareboat chartering transfers a high level of operational responsibility to the charterer, and the parties should review the form with particular care. To download or review the BARECON Charterparty Form, please check www.bimco.org

Who Prepares the Charterparty?

A charterparty may be prepared by shipbrokers, shipowners, charterers, operators, or maritime lawyers. In practical chartering, the first agreement is often recorded in a recap negotiated through shipbrokers. The full charterparty is then prepared by incorporating the recap terms into the agreed standard form, together with rider clauses and any additional wording agreed during negotiations.

The preparation of a charterparty may involve:

  1. Shipbrokers: Shipbrokers often prepare the working draft because they are directly involved in negotiating the fixture. They usually understand the recap, market practice, standard clauses, and the commercial balance required between shipowner and charterer.
  2. Shipowners or Shipowners’ Shipbrokers: Shipowners or their shipbrokers may prepare the charterparty when the shipowner wants to ensure that the agreed terms are correctly reflected and that the shipowner’s operational requirements are protected.
  3. Charterers or Charterers’ Shipbrokers: Charterers or their shipbrokers often prepare the charterparty, especially when the charterer has a preferred form, regular cargo programme, or standard rider clauses. In many dry cargo fixtures, the charterers’ shipbrokers draft the charterparty and submit it to shipowners or shipowners’ shipbrokers for review.
  4. Maritime Lawyers: Maritime lawyers may draft or review the charterparty where the transaction is complex, high-value, unusual, or legally sensitive. Legal review is particularly important where there are sanctions issues, financing structures, long-term bareboat arrangements, unusual cargo risks, or cross-border enforcement concerns.

Regardless of who prepares the document, both parties should review the charterparty carefully before signing. A charterparty should not merely repeat the recap; it should accurately convert the commercial bargain into enforceable contractual wording. Small drafting differences may later affect freight, hire, demurrage, despatch, off-hire, claims, liens, cargo responsibility, and arbitration.

How to Choose the Right Charterparty Form

The correct charterparty form should be chosen according to the commercial purpose of the fixture. A voyage charter form is suitable where the ship is employed to carry cargo between agreed ports. A time charter form is suitable where the charterer needs commercial control of the ship for a period. A bareboat form is suitable where the charterer takes possession and operational control of the ship.

The parties should also consider the cargo, trade route, port conditions, ship type, laytime structure, insurance requirements, regulatory exposure, emissions obligations, sanctions risk, and dispute resolution forum. A familiar form can still be dangerous if it is used for the wrong trade or amended without understanding the consequences.

In professional ship chartering, the form is not a mere administrative document. It is the legal framework for the fixture. Selecting the right charterparty form at the beginning of the negotiation can prevent later disputes, clarify responsibilities, and support smoother performance from the first offer to final settlement.