Affreightment

Affreightment refers to an arrangement where a carrier agrees to transport cargo for a shipper in return for freight. The agreement may cover a single voyage, a series of voyages, or multiple shipments over a defined period. It does not necessarily involve the chartering of a specific vessel for exclusive use, but rather a commitment to carry agreed quantities of cargo. Affreightment is commonly structured through a Contract of Affreightment (COA), which sets out cargo volumes, loading and discharge ports, laytime terms, and freight rates. The concept is widely used in bulk, commodity, and liner trades where regular or repetitive cargo movements are required.