A company wishes to ship large quantities via ocean freight, utilizing the entire vessel capacity. The most appropriate contract of carriage to use a:
A) bill of loading (B/L).
B) wet lease.
C) charter party.
D) letter of credit.

Question

Quizplus · Accepted Answer

A charter party is the most appropriate contract of carriage to use when a company wishes to ship large quantities via ocean freight and utilize the entire vessel capacity. The charterer rents the entire vessel for a certain period of time and is responsible for all costs associated with the voyage, including fuel and port fees. This is in contrast to a bill of lading, which is a document issued by a carrier to a shipper, acknowledging that goods have been received on board a vessel for shipment to a specific destination. Wet lease is a contract for the leasing of a complete aircraft, including crew, maintenance, and insurance, for a specific period. A letter of credit is a financial document used in international trade to ensure that payment will be made from the buyer to the seller.

A Company Wishes to Ship Large Quantities Via Ocean Freight