Contract of Affreightment

A Contract of Affreightment (COA) is a long-term transportation agreement between a shipper and a carrier, stipulating that the carrier provides transportation services for specific routes or cargo types within a certain period, and charges freight according to agreed rates. Its core feature is 'volume commitment, shipment in batches', meaning the shipper commits to providing a certain total quantity of cargo, and the carrier commits to providing space and guaranteeing transportation. It is mostly used in long-term import and export trade of bulk cargo (such as coal, ore, grain, oil, etc.), to lock in freight rates and stabilize capacity. Points to note: it is necessary to specify cargo type, total quantity, loading and discharging ports, freight rate and adjustment mechanism, loading and unloading time and demurrage, liability for breach of contract, etc. The difference from a Voyage Charter is that a COA is a framework agreement for multiple voyages and does not designate a specific vessel; the difference from a Time Charter is that a COA charges by cargo volume, not by time.