Shipping Business Practice Test

In a time charter, the charterer gains the use of the vessel for a defined period while the ship remains owned by the owner and the crew is typically provided by the owner. The charterer controls the vessel’s commercial use—where it goes and what cargo it carries—within that charter period, and the charterer pays the running costs such as fuel and port charges. The hire covers the use of the ship for the specified time. This matches the statement that describes the vessel and crew being leased for a set time, with ownership staying with the owner, and the charterer selecting ports and paying variable costs. Other options describe different charter types or cost arrangements that aren’t time charters.