In the described chain of charters, which party pays the crew wages?

• A. The first charterer
• B. The second charterer
• C. The third charterer
• D. The fourth charterer

Answer: (B)

The key idea is that who pays the crew wages depends on who has operating control of the vessel for the period in question. In a chain of charters, control transfers from one charterer to the next for each leg of the voyage, so the crew costs follow the party that is actually running the ship during that leg. The second charterer is the one in charge of the vessel for the next segment, and thus is responsible for the crew wages. The first charterer would only cover the first leg, and the third and fourth would be responsible for later segments, not the current one. So the crew wages are borne by the second charterer.