Freight rates may be on a per-ton basis over a certain route (e.g. for iron ore between Brazil and China), in Worldscale points (in case of oil tankers).
Alternatively may be expressed in terms of a total sum, normally in US dollars, per day for the agreed duration of the charter.
A charterer may also be a party without a cargo that takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate or even makes a profit in a rising market by reletting the ship out to other charterers.
Time charter equivalent is a standard shipping industry performance measure and is used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types.
Coverage of a Charterers' Liability Insurance can vary, based on the charter-party type and additional inclusions or exclusions that are arranged prior to the purchase of the insurance.