Answer
A - It is a medium to long term agreement b/w a shipowner and a charterer, wherein the shipowner agrees to transport a specified quantity of cargo over a fixed period of time.
- COA sets out the terms and conditions of the shipments such as the type of cargo, the no. of shipments,
the loading and discharging ports and the freight rates & the duration of the contract.
- Payment – The charterer pays the shipowner on a per shipment basis, usually in the form of freight rate per
ton of cargo. This rate may be fixed or subject to market fluctuations.
- Control – The shipowner retains control over the vessel’s commercial & technical management. The Charterer is
responsible for providing the cargo and arranging loading and discharging operations at the ports.
- Shipowner’s responsibility – The shipowner bears the responsibility for the items carried onboard until they
are delivered to the specified destination on time.
- The two main types of standard form COAs –
a)VOLCOA – Standard Vol Contract of affrgtment for the transportation of dry bulk cargoes, which was published by BIMCO in 1982
b)INTERCOA 80 – Tanker COA which was published by INTERTANKO & adopted by BIMCO in 1982.