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Articles

Vol. 1 No. 2 (2026): September

Dynamics of Commercial Ship Charter Agreements: Analysis of Operational Obstacles and Triggers for Contract Cancellation in Palembang City

Submitted
June 6, 2026
Published
2026-06-22

Abstract

Abstract
Purpose – This study aims to investigate the implementation of ship chartering agreements at PT Marine Mandiri Shipping Sealine. Furthermore, it analyzes the operational and technical obstacles encountered and identifies the primary factors triggering the cancellation of charter agreements.
Methodology – This empirical research employs a descriptive qualitative approach. Primary data were gathered through field observations and in-depth interviews, while secondary data were acquired via a literature review. The collected data were systematically analyzed using NVIVO software to categorize themes and visualize the coding structure.
Findings – The results reveal that the company implements four primary chartering schemes: voyage, time, bareboat, and pool charters. The predominant obstacles are technical issues, such as vessel downtime due to damage, and operational challenges, including delivery delays. Additionally, the primary catalyst for contract cancellation is default, specifically the charterer's failure or delay in settling invoice payments.
Implications – The findings urge shipping companies to transition from corrective to preventive maintenance management to minimize fleet downtime. Additionally, this study reinforces contract law theories regarding the aggrieved party's right to claim compensation or terminate agreements.
Originality – This paper provides empirical insights into commercial ship chartering practices by mapping the hierarchy of operational issues and contract disputes within the domestic maritime industry.

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