Research On Legal Questions Of Contract Of Affreightment

In international shipping practice, there are usually two basic services called liner service and charter service which include voyage charter, time charter and demise charter. Nowadays, in practice, the contract of affreightment has been widely used in charter service, especially in cargo transportation on large quantities of bulk cargo with fixed route. In order to send the cargo with cheaper freight and reliable service, the cargo owner will sign a contract of affreightment with the ship owner who want to canvass long and stable cargo. The contract of affreightment is usually intentional with unfixed vessel, cargo quantities, loading and discharging port, loading and discharging date, but the loading quantities are usually hundred thousands tons or millions tons, and loading period will be several years or even more. A contract of affreightment sometimes is crucial to both the cargo and ship owner. During the procedure of formulating and performing the contract of affreightment, the owners must be more attention to avoid any mistake. It is necessary to make research on this special form of contract of carriage of goods by sea from the view of law to secure and protect the legitimate rights and interests of the parties concerned, and to promote the development of maritime transport,economy and trade.Firstly, this thesis defines the definition of the contract of affreightment, and analyses its characteristics, nature(one kind of contract of carriage of goods by sea) and important functions to the charterer and ship's owner. Secondly, when the contract of affreightment are being formulated and performed, not only the general principles acknowledged in the Contract Code of the People's Republic of China and the Common Law should be applied, but also the principle of Changed Circumstances should also beapplied and some details should be mentioned, that is the difference with the clause of exemption, the claim for compensation and how to modify the contract in accordance with the principle of Changed Circumstances. Furthermore, this thesis discusses the main components in the contract of affreightment as the parties, the contract period, the cargo, the vessels and the programme of shipments. Some clauses in practices are analyzed, compared and taken into research. Some unclear divergent clauses, which will be harmful to the contract parties, are pointed out and should be avoided. Some clear and protective clauses, which can well protect the parties' benefit, are emphasized. Finally, upon the full analysis and research of the contract and affreightment, legal proposals to put a "Special Provisions Regarding Contract of Affreightment "into Chapter IV "Contract of Carriage of Goods by Sea" in The Maritime Code of the People's Republic of China including some specific articles are proposed, which can standardize the shipping market and fill the vacancy and to lead in this area.