Contract of Affreightment (COA)

What is Contract of Affreightment?

Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period.

Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.

Signed document
This is an agreement that exists between a ship-owner and a charterer.