Contract of Affreightment
Long-Term Volume
Shipping Agreements
A Contract of Affreightment combines the rate certainty of a time charter with the flexibility of individual voyage fixtures — the right structure for traders and operators with recurring West African cargo requirements.
Principal Requirement
COA enquiries are handled directly with cargo owners and licensed traders. Vessel counterparties are introduced only after principal confirmation and a signed LOI on company letterhead. Introducing brokers: please provide direct principal contact with your enquiry.
What is a Contract
of Affreightment?
A Contract of Affreightment (COA) — sometimes called an Affreightment Agreement or Volume Contract — is a long-term freight agreement under which an owner (or pool of owners) agrees to carry a defined volume of cargo for a charterer over an agreed period, at a pre-agreed rate or rate formula.
Unlike a single voyage charter, a COA governs multiple shipments. Unlike a time charter, the charterer does not hire a specific vessel — the owner nominates appropriate tonnage for each lifting, subject to charterer approval. This gives the charterer rate certainty without the obligations of vessel ownership.
COAs are standard practice in West African crude oil trading, product distribution, and LNG offtake — wherever a company has a recurring, predictable cargo requirement over a defined period.
Rate Certainty
Fix freight rates for 6–36 months, protecting against spot market volatility. Ideal for traders managing margin risk on recurring cargo positions.
Voyage-by-Voyage Flexibility
Each lifting is a separate voyage — you control timing, port rotation, and cargo quantity (within agreed tolerances) shipment by shipment.
Vessel Approval Rights
Charterers retain the right to approve each nominated vessel — ensuring suitability for the cargo, port, and any oil major vetting requirements.
BIMCO Standard Documentation
All COAs are structured on BIMCO-recognised affreightment terms with standard protective clauses — anti-corruption, sanctions, and cyber security.
Charter Structure Comparison
Voyage Charter (Spot)
Best suited for
One-off or irregular cargo requirements
Rate basis
Worldscale or USD/MT — negotiated each fixing
Flexibility
Maximum — no commitment beyond one voyage
Risk profile
Exposed to spot market rate volatility
Vessel control
No control over vessel between voyages
Contract of Affreightment
Best suited for
Recurring cargo — 4 to 24 liftings per year
Rate basis
Agreed flat rate or Worldscale basis — fixed at COA signing
Flexibility
High — individual lifting scheduling flexibility
Risk profile
Rate certainty; vessel nomination risk managed through approval rights
Vessel control
Vessel approval rights on each nomination
Time Charter
Best suited for
Continuous vessel control needed
Rate basis
USD/day — fixed at signing
Flexibility
Low — vessel must be continuously employed
Risk profile
Rate certainty; off-hire risk; bunker cost exposure
Vessel control
Full voyage control — charterer directs the vessel
West Africa Applications
Where COAs Work in West Africa
The West African energy trade generates consistent, predictable cargo flows — making it well-suited to COA structures for operators who want rate certainty without fleet ownership.
Nigerian Crude Export
International traders with committed crude offtake from Bonny, Qua Iboe, Escravos, and Forcados typically structure 6–12 month COAs covering monthly or bi-monthly VLCC or Suezmax liftings to Asian and European refiners.
Refined Product Distribution
Marketing companies and oil distributors supplying Nigerian and West African markets with AGO, PMS, and DPK can fix COAs covering regular MR tanker liftings from European or Middle Eastern refineries — locking in freight ahead of seasonal demand spikes.
Coastal & Regional Distribution
Companies supplying refined products to Cotonou, Lomé, Tema, Abidjan, and other regional markets often fix COAs for West African coastal MR trading — providing rate certainty across a full year of coastal distribution liftings.
Offshore Supply (AHTS/PSV)
E&P operators with multi-year field development or production programmes typically structure their offshore support vessel requirements as long-term COAs or bareboat charters, providing vessel availability certainty across the project lifecycle.
Typical COA Structure
Contract Period
Typically 6 months to 3 years. Longer periods provide greater rate certainty; shorter periods offer more flexibility to renegotiate at market.
Volume Commitment
Total cargo volume (in metric tonnes) or number of liftings. Often expressed with +/- tolerance (e.g. 12 × 100,000 MT ± 5%).
Freight Rate
Either a fixed flat rate (USD/MT or lumpsum) or a reference to a Worldscale basis. Some COAs include escalation provisions linked to bunker price indices.
Vessel Nomination
Owner nominates a vessel for each lifting; charterer has the right to approve. Approval criteria (age, flag, class, P&I) are agreed at COA signing.
Lifting Schedule
Laycan windows for each lifting are agreed in advance — typically quarterly — or nominated 30–60 days before the laycan window opens.
Demurrage & Despatch
Standard laytime and demurrage terms apply to each lifting, usually set by reference to the base charter party form (ASBATANKVOY, SHELLVOY, etc.).
Discuss a COA
Tell Us Your Volume Requirement
Describe your cargo programme — volume, frequency, routes, timing — and we will come back with COA structures and indicative rates within the hour.