GlossaryEN1 min readUpdated: Jun 13, 2026

FOB charterparty reference

An FOB charterparty reference occurs when an FOB freight contract explicitly incorporates terms from a charterparty (the vessel hire agreement).

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Free_on_board

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An FOB charterparty reference occurs when an FOB freight contract explicitly incorporates terms from a charterparty (the vessel hire agreement). This means that freight rates, laytime terms, demurrage clauses, and specific voyage obligations are governed not solely by standard FOB rules but also by charterparty conditions. Shipowners and freight forwarders frequently employ this linkage for bulk shipments or industrial cargo to align both contracts and reduce ambiguity. The buyer must recognize that beyond the standard FOB risk-transfer provisions, additional charterparty-specific costs, laytime penalties, or operational constraints may apply. This structure is common in tramp shipping and long-term freight arrangements.

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FOB charterparty reference

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