Nowadays, a person or a company that decides to invest in the construction of a ship has to choose between several business options: the transport of their own cargo - there are situations when the major international companies, and especially those that act on the petroleum products market, use the ships to transport their own products; the rent of one or more duties of the ship owner (such as the commercial management, the technical management) to a specialized person or company, in return of a fixed amount of money (paid by the owner); the disposal of the whole nautical and commercial management of the ship to another person or company. The last operation is the one called “ship charter”. And this is the reason why the construction of a ship is a very good idea of business. People from large cities like Dubai usually decide to invest in the ship constructions and they use ship charter as a way of making profit.
Over time, those who offer Dubai ship charter services claim that, due to various legal issues that have generated from the diversity of legal systems, a series of standard contracts has been imposed and the terms of the contracts are predetermined and printed on some templates. There are, however, many different types of ship charter contracts but the most common ones are the charter by demise (also called bareboat charter), the booking note and the charter party.
From all types of contracts, the most rarely used is the bareboat charter. The ship owner offers the charterer the right to use an unarmed vessel in exchange of a rent called "hire" which is calculated according to the duration of the use. On the other hand, the most popular contract is the charter party that includes two different parts: the voyage charter party (the ship rental for a number of voyages) and the time charter party (the charterer leases the ship for a specified period of time).