In dry bulk shipping, the two most common ways to employ a vessel are the voyage charter and the time charter. Understanding the difference helps cargo owners, traders and shipowners choose the structure that fits their risk and cost profile.

What is a voyage charter?

Under a voyage charter, the shipowner agrees to carry a specific cargo between named ports for an agreed freight, usually expressed per tonne. The owner pays the vessel’s running costs, bunkers and port costs, while laytime and demurrage terms govern time spent loading and discharging.

What is a time charter?

Under a time charter, the charterer hires the vessel for a period of time or a trip and pays daily hire. The charterer directs the ship’s employment and normally pays for bunkers and port costs, while the owner continues to crew, maintain and insure the ship.

Key differences at a glance

Payment: freight per tonne (voyage) vs daily hire (time)
Bunkers and port costs: owner (voyage) vs charterer (time)
Delay risk: largely the owner’s, subject to laytime and demurrage (voyage) vs largely the charterer’s (time)
Control of employment: owner (voyage) vs charterer (time)

Which one should you choose?

A cargo owner moving a single shipment usually prefers a voyage charter for cost certainty. Operators and traders with regular volumes, or those who want control over the vessel’s schedule, often use time charters. A broker can help compare options on a like-for-like basis.

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