Charterers are the controllers of cargo and the shipping industry’s customers. Almost everyone relies in their daily lives on products that charterers transport by sea. They are a diverse group – ranging from the world’s largest oil companies, to mining concerns, international commodities traders and grain houses. They deal in almost every commodity – from raw materials such as iron ore, bauxite, grain and crude oil to highly refined products such as aviation fuel and petrochemicals. Some charterers own ships themselves, either on a leased or permanent basis, chartering vessels from independent ship owners when the need arises. This is often a strategy to hedge against rising future freight markets. However, most charterers regularly hire ships, or space on ships, to move their goods, products and even passengers. Dry commodities are shipped on bulk carriers, general cargo, refrigerated and container vessels while liquid and gas cargoes are transported aboard tankers and gas carriers.
Charterers usually pay charter rate in dollars and the price they pay may fluctuate widely depending on the demand and supply of ships.
For Further Reading Visit: Institute of Chartered Shipbrokers - Tanker Chartering, International Association of Independent Tanker Owners, Institute of Chartered Shipbrokers - Dry Cargo Chartering, International Association of Dry Cargo Shipowners