Contract of affreightment
COA
Meaning
A contract of affreightment (COA) commits an owner to carry a series of cargoes over a period, without naming the ship for each one in advance.
Contract of affreightment explained
A COA sets the total quantity, cargo sizes, routes, freight and nomination procedure, and the owner nominates a suitable ship for each lifting. That gives the charterer secure capacity and the owner a base of employment.
Each lifting under a COA is then performed much like a voyage charter, with its own laytime and demurrage.
Related terms
Voyage charter
A voyage charter is a contract to carry a cargo between named ports for a freight payment, with the owner running the ship and paying its costs.
Time charter
A time charter hires the ship for a period at a daily rate; the charterer directs its employment and pays for voyage costs like bunkers and port fees.