What does charterparty mean?
A charterparty is the formal written contract at the heart of commercial shipping, by which a shipowner agrees to place a vessel — or sometimes just part of its cargo space — at the disposal of a charterer, whether for a single voyage or for a set period. The word looks like a blend of 'charter' and 'party', but it descends from the Latin charta partita, meaning a 'divided document': such agreements were once drawn up on a single sheet and torn along an irregular line so that owner and charterer each retained a half whose edges would prove authenticity. Today the term belongs firmly to the language of maritime law, appearing in freight negotiations, bills of lading disputes, and international arbitration. Its principal varieties — voyage, time, and bareboat charterparties — allocate responsibilities for crew, fuel, maintenance, and cargo differently, making precise drafting essential.
nounA formal contract by which a shipowner agrees to lease an entire vessel, or part of its cargo space, to a charterer for the carriage of goods or passengers on specified terms.
- A written contract between a shipowner and a charterer for the hire of an entire vessel (as in a bareboat or demise charter) for a voyage or a period of time.
- A written contract for the hire of part of a ship's cargo space to carry goods.
"The dispute over demurrage charges was settled by reference to clause 14 of the charterparty."
"The shipowner claimed that under the charterparty the fuel costs fell entirely on the charterer."
"Freight rates collapsed, and several owners found themselves locked into loss-making charterparties signed months earlier."
The plural follows the standard y-to-ies pattern and appears regularly in legal and trade writing when referring to multiple such contracts.
"The fleet's earnings depended heavily on the long-term charterparties negotiated during the freight boom."
Despite looking like 'charter' plus 'party', it actually comes from the Latin charta partita — a 'divided document' once physically torn so each side held matching halves.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of charterparty
The term derives from the medieval Latin charta partita, meaning a 'divided document' or deed split in two. In early practice, such contracts were written twice on one parchment and cut apart through the text along a wavy line, so that the two parties' halves could later be matched to verify authenticity. English adopted the phrase as 'chartre partie' in Middle English before it fused into the single modern word 'charterparty'. It thus shares its root with 'charter' itself and, more distantly, with Latin charta ('paper, document'), which also gives us 'card' and 'chart'.
Related word forms
How charterparty is actually used
A technical term of maritime and commercial law, used almost exclusively in shipping contracts, insurance, and arbitration. It is normally written as one word; variants such as 'charter-party' appear chiefly in older texts. The main types — voyage, time, and bareboat (demise) charterparties — carry distinct legal consequences regarding possession, crewing, and liability.
Easily confused with charterparty
A charter is any grant of rights or hire agreement generally, while a charterparty specifically denotes the contract for hiring a whole ship or part of its cargo space.
"Party" alone means a person or side in a legal agreement, whereas "charterparty" is the single compound noun naming the shipping contract itself.