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Inquiry → Fixture → Voyage → Settlement

How Ship Chartering Works

Step-by-step walkthrough of how to charter a ship through Bulkargo. The full process from inquiry to fixture, charter party, voyage, and post-fixture: what you do, what your broker handles, and how long each step takes.

Image Placeholder Bulkargo broker on phone at desk negotiating a fixture, multi-screen rate dashboard visible in foreground Working desk environment, in-the-moment. Should feel real and active rather than staged corporate
6
Steps

Inquiry through post-fixture

3–7
Business days

Standard dry cargo voyage

24–48
Hours

Liquid tanker fixtures

0
Cost to cargo owner

Brokerage paid by vessel owner

Why use a broker

Three reasons cargo owners do not go direct

To charter a ship is to hire a vessel, in whole or in part, for a single voyage, a period of time, or a defined programme of cargoes. The mechanics, the contracts, and the market structure are covered in detail on our ship chartering overview. The question on this page is narrower and more practical: how the process actually runs when you bring an inquiry to a broker, and why most cargo owners choose that route rather than going direct to owners.

The market is fragmented and opaque. Tens of thousands of vessels are operated by thousands of owners and disponent owners across multiple jurisdictions. Positioning data is partial and time sensitive, rates move daily and are not published in any single venue, and the same route can fix at very different numbers depending on owner appetite, ballast position, and recent fixture history. Finding the right ship at the right price requires constant market presence and a working relationship with the desks that actually control the tonnage.

The contract is technical. A charter party runs to twenty or more pages of operational charter party terms: laytime, demurrage, dispatch, hold cleanliness, weather working, off-hire, deviation, BIMCO standard amendments, war risk, sanctions, and cargo specific riders. Drafting and negotiating these without expertise leaves money and risk on the table. Small wording choices, the difference between a reversible and a non reversible laytime clause, for example, can swing the economics of a voyage by tens of thousands of dollars.

Post-fixture issues are routine. Demurrage calculations, mate’s receipt disputes, bill of lading wording, voyage delays, off-hire claims, hold cleanliness disputes: there is almost always something to handle after the ship sails. A broker who fixed the deal carries the context to settle these quickly. Cargo owners who go direct often find that what looked like a saved commission becomes a recurring drag on the operations team.

Add to that the compliance overhead that has grown sharply in the last decade. Sanctions screening, vessel and ownership vetting, flag and class checks, P&I cover verification, and ESG questions on a vessel’s emissions profile are now part of standard pre-fixture diligence. Bulkargo handles the full sequence end to end.

Image Placeholder Charter party document being annotated, calculator, pen, AIS screen edge visible: the contract work Tight composition showing brokerage detail. Conveys that brokerage is technical, not just market access

The six-step chartering process

The standard sequence on every fixture, with what you provide, what we do, and how long each step typically takes. Bulkargo’s ship brokering team handles each step on your behalf, from inquiry through the laycan window, the fixture recap that binds the deal, and the master’s notice of readiness at the load port. The flow below is the same shape for a one off spot voyage and a long term contract of affreightment. What changes is the depth of work in each step: a repeat programme on a familiar route compresses steps one through three, a first time project cargo or a sensitive trade extends them. Knowing where you sit on that spectrum is the first thing a broker assesses on your inquiry.

  1. 01

    Define your shipping requirement

    20–30 min

    We translate your cargo and timeline into a workable inquiry: vessel-class implications, port restrictions, laycan window. Where the brief is partial, we ask the questions that close the gap before the inquiry goes to market, so the offers that come back are like-for-like and easy to compare. Before fixture, we run standard KYC and sanctions screening on both sides. Document requirements are sent on first inquiry.

    You provide
    Cargo type and tonnage, load and discharge ports, laycan window, any vessel constraints
    We handle
    Stowage factor, hold cleanliness needs, port restrictions, weight-determination procedure
  2. 02

    Market canvass

    24–72 hrs

    We approach our owner and operator network for vessels matching cargo, laycan, and constraints. Direct contacts, fixture databases, AIS positioning. Coverage extends beyond the obvious tonnage to ballasters and vessels finishing nearby fixtures, which is often where the sharper rates sit on a tight laycan.

    We handle
    DWT/cubic match, age and class, last cargo, current position, trading restrictions
  3. 03

    Offer evaluation and negotiation

    24–48 hrs

    Shortlist with indicative rates and recommendation. Full negotiation covers freight or hire, laytime, demurrage, dispatch, loading and discharge rates, laycan, CP form, BIMCO clauses, cargo-specific clauses. We benchmark each offer against recent comparable fixtures and tell you which numbers are firm market and which have room to move.

    We handle
    Benchmark vs recent fixtures, negotiate full term sheet
  4. 04

    Fixture and charter party

    24–72 hrs

    Fixture concluded by recap (binding subject to subjects being lifted). Formal charter party drawn up on the relevant form: GENCON for general bulk voyage work, or the trade-specific form for the cargo at hand. Cargo-handling cost allocation (liner terms, FIO, FIOS) is settled in the recap and reflected in the CP. We review every clause against the recap and our standard checks. The subjects period is short, often a single working day, and we coordinate the lifting sequence so neither side is left exposed if anything slips.

    We handle
    CP review, owner-favourable amendment pushback, signature coordination
  5. 05

    Pre-loading coordination

    Vessel proceeds to load port. Notice of Readiness is tendered on arrival once the vessel is ready in all respects. Valid NOR plus the CP's turn time provision sets the start of laytime, which is then counted against the agreed laytime regime. The local ship agent is appointed at the load port to coordinate with port authorities, customs clearance, the master on berthing, and stevedoring. Hold cleanliness inspection and pre-loading surveys (draft, moisture, grade verification) follow. We stay in the loop with master, owner, and agents so cargo readiness, berth windows, and hold passes are resolved before laytime starts running.

    We handle
    Liaison with master, owner, port agents, shippers. Resolve last-minute issues before they become disputes
  6. 06

    Voyage execution and post-fixture

    Loading completes, B/L issued, vessel sails. On arrival: NOR, discharge laytime, statement of facts. After discharge: SoF review, demurrage settlement if applicable. The fixture closes once the numbers are reconciled. We carry it through to that point.

    We handle
    Voyage monitoring, weather watch, demurrage calculation, settlement coordination

Most post-fixture problems start before the vessel sails. They come from charter party wording that did not account for how the voyage actually runs at the load port, at sea, or on discharge. We work the clauses against the specific cargo and route in front of us so the operational stage runs as paperwork. The broker who handled the fixture handles the settlement.

We negotiate the fixture and we stay with it. Post-fixture demurrage settlement, owner correspondence, and dispute support are part of the standard service: not extras.

On the brokerage relationship
Inquiry checklist

What to send when you reach out

Send what you have: Bulkargo can work with partial information. The list below mirrors the fields in our quote form, and each item is there because it materially shapes the vessel shortlist, the rate, or both. The more of it you can give us up front, the faster we can come back with firm offers rather than indications.

  • Cargo type and approximate tonnage. “Approximately 32,000 MT urea in bulk” is enough to start. Cargo type drives stowage factor, hold cleanliness requirements (grain clean, hospital clean, last three cargoes restrictions), and any IMSBC code declarations for solid bulk cargoes. Tonnage anchors the vessel class.
  • Load port or region. Specific port preferred; range acceptable for early-stage inquiries. The port determines draft and air draft restrictions, loading rate and equipment, available berths, and turn time, all of which feed into vessel suitability and the laytime numbers.
  • Discharge port or region. Same logic in reverse, plus any country specific receiver requirements: vessel age limits, P&I cover thresholds, sanctions exposure, or local cargo handling rules that can rule entire pools of tonnage in or out.
  • Preferred laycan. A 7- to 14-day window is normal. Tighter windows reduce vessel options and tend to push rates up, because owners price the risk of dead time around a narrow slot. Wider windows let us include ballasters and vessels finishing nearby fixtures, which usually improves the rate.
  • Special requirements. Hold cleanliness, loading or discharge gear, draft restrictions, vessel age limit. These act as hard filters on the shortlist, so flagging them at inquiry stage prevents wasted negotiation on tonnage that would have failed vetting later.
  • Charter type preference. Voyage, time, COA, spot: if you have one. If not, we will advise. The right structure depends on cargo predictability, your risk appetite on freight, and how much operational control you want over the vessel.
  • Budget expectations. Optional but useful for framing. A budget number is not a target we negotiate to, it is a reference that helps us tell you quickly whether the market is above, below, or in line with where you sit.

For recurring programmes also send: annual or seasonal volume forecast, port pairs, and any existing COA terms. That lets us model the freight book as a whole rather than as a series of standalone fixtures, which often unlocks better economics through programme commitments to owners.

Image Placeholder Inquiry form mock-up or screen showing cargo / port / laycan fields filled in Could be a screen of the actual quote form or a designer-rendered mock. Shows what completed inquiry looks like

Common questions

How long does it take to charter a ship?
Standard dry cargo voyage charter on a routine trade lane runs three to seven business days from inquiry to signed fixture. The first day is taken up by inquiry clarification and market canvass, the next two to three by offer evaluation and negotiation, and the remainder by recap, subjects, and charter party signature. Tanker fixtures in liquid markets are faster, typically 24 to 48 hours, because the contract forms are more standardised and the trading desks are set up for high turnover. Project cargo, heavy lift, and specialist chemical or gas fixtures typically need 4 to 8 weeks lead time due to narrower vessel availability and the engineering reviews involved. Market tightness compresses or extends these windows: when prompt tonnage is scarce, even routine fixtures can stretch, and when the market is long, owners come back inside the same day.
How much does it cost to charter a bulk carrier?
Voyage rates are quoted per tonne and depend on route, cargo, vessel size, and market direction. Time charter rates are quoted per day. Indicative ranges in normal market conditions: Capesize voyage rates run from a few USD per tonne on short hauls up to USD 25 or more per tonne on the Brazil to China iron ore route; Panamax time charter rates typically sit in the USD 12,000 to USD 30,000 per day band; Handysize and Supramax fall below that range, while Capesize daily rates can move significantly higher in firm markets. These numbers move significantly with market cycles. The Baltic Dry Index (BDI) is the headline indicator most cargo owners watch, and we provide a live market read on every inquiry rather than asking you to translate a published index into a usable number for your specific cargo and route.
Do I need a broker to charter a ship?
Technically no, you can approach owners direct. In practice almost every cargo owner uses a broker because market access, negotiation expertise, risk management, and post-fixture support are difficult and expensive to replicate in-house. The broker provides three things that are hard to build: a working network of owners and operators that returns calls on a tight laycan, a benchmark against recent comparable fixtures so you know what fair value looks like on the day, and continuity through to settlement on demurrage and disputes. In tanker work, vessel vetting (SIRE inspections, owner and ISM compliance, age and class) and sanctions screening add a further layer of due diligence that is hard to run cleanly without a broker. Brokerage commission is paid by the vessel owner out of freight, so there is no direct cost to the cargo owner.
What is the minimum cargo size for chartering?
Mini bulkers can be chartered from around 3,000 MT and are common for short sea trades in Europe, the Mediterranean, and intra Asia. Handysize sits from around 25,000 MT, Supramax and Ultramax from 50,000 MT, Panamax from 65,000 MT to 80,000 MT, and Capesize from 150,000 MT to 180,000 MT and above. For parcels below 3,000 MT, the practical route is usually a part cargo on a multipurpose vessel or, for liquids and chemicals, a slot on a parcel or chemical tanker, where multiple shippers share a single vessel. We advise on which structure fits the volume, cargo, and trade lane.
What documents do I need to provide?
At inquiry stage you only need cargo specifications, load and discharge ports, and the laycan window. From there we coordinate the rest: charter party drafting and review, fixture recap wording, bill of lading instructions, statement of facts review, and the wider shipping documentation set the trade requires (certificate of origin, phytosanitary or quality certificates on commodities, dangerous goods declaration on IMDG cargo, sanctions and compliance attestations). On your side, you keep ownership of the cargo specification and the underlying sale or purchase contract; on ours, we keep ownership of the vessel and the carriage contract that links them.
Can the same broker handle ongoing programmes?
Yes. About half of our work is repeat or programme business. We can structure long-term relationships as COAs or rolling time charters, which fix freight and capacity and remove spot market exposure on each cargo.

Related references

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