In chartering, who are the principals?

• A. Shipper and consignee
• B. Owner and charter-in party
• C. Broker and agent
• D. Carrier and forwarder

Answer: (B)

In chartering, the people who actually enter into and bind themselves to the charter agreement are the shipowner and the party that hires the vessel, the charter-in party. The shipowner provides the vessel, while the charter-in party pays hire and dictates how the vessel is used for the agreed period or voyage. Shipper and consignee relate to the cargo being moved, not the vessel hire contract. Brokers and agents are intermediaries who facilitate the deal, not the primary contracting parties. Carriers and forwarders deal with moving cargo, but they aren’t the two parties forming the charter party itself. So the principals are the owner and the charter-in party.