Nautical Term: COACP
Definition of COACP
A Contract of Affreightment (COA) is a type of maritime contract used for the regular transportation of a specific commodity over a defined period. The Charter Party, which is a legally binding document incorporated into the COA, sets out the terms and conditions governing the vessel’s charter and the cargo’s transportation.
For instance, in a COA for the transportation of 50,000 metric tons of coal from Australia to Europe over a six-month period, the charter party would include provisions regarding the vessel’s specifications, the loading and discharging ports, the cargo’s quality and quantity, the cargo’s stowage and handling, the voyage’s duration and scheduling, the freight rate and payment terms, the insurance coverage, the dispute resolution mechanisms, and other miscellaneous provisions.
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