What Is A Consecutive Voyage Charter (CVC)?

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The main types of charter parties are the voyage charter, the time charter and the bareboat charter, whilst some other chartering forms also may be found (e.g., COA (contract of affreightment), consecutive voyages and trip charter). Charter parties fall into categories in respect to the types of charter or cargoes carried.
What is a Consecutive Voyage Charter (CVC)?
Consecutive Voyage Charter or commonly known as CVC is a special type of a voyage charter where the vessel is contracted for several voyages which follow consecutively upon each other. It is similar to a voyage charter and shares its fundamental features such as freight, laytime, demurrage provisions and risk of delay on the owners. The main idea behind a CVC is that trading …show more content…

While the voyage element is more apparent, the charterer has the discretion and disposal of the vessel for that period of time and specific similar to a time charter.
The peculiarity arising under agreement for consecutive voyages are those of voyage charters but the time factor causes certain structural differences, for example, with respect to costs and income. Often, these contracts will contain, for example, bunker clauses or other clauses concerning cost variations.
One other peculiarity of a consecutive voyage charter is the time factor as it causes certain structural differences when it comes to costs and income. These contracts will contain bunker clauses or other clauses concerning cost …show more content…

The charterer pays the vessel owner on a per-ton or lump-sum basis. This is different as compared to time charter or bareboat charter which is based on daily hire and usually paid in advanced before using the ship and independent on the number of voyages made. One of the peculiarities of a CVC is that the freight rate varies for every voyage that is being made according to the market at that period of time and the charterer will only make payment to the owner once a particular voyage is completed and after cargo is discharged. Therefore, if vessel does not arrive in port of cargo or is lost in transit, freight will not be paid. For a CVC, there is a risk factor element for the owner as the owner will obtain lesser freight if the vessel does its voyage trip as quickly and consecutively due to weather issues or otherwise. Due to this peculiarity of this particular type of charter party, there is a tendency for the charterer to abuse it. As such, there should be an element of caution when it comes to determining rates of freight and

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