When a ship is taken on rent, it is known as ship chartering. Just as people take an apartment or a car for rent, some people may rent a ship based on their requirements. It could be to transport passengers or cargo.
Renting a ship is known as ship chartering and it begins with the ship-owner and a second party entering into an agreement. In shipping parlance, this agreement is known as a charter party.
The party that rents out the ship is the ship-owner and the second party who is taking the ship on rent is known as the charterer.