CHARTER PARTIES

Time Charter Party

Suspension of Hire (Off-Hire)

Considering the high amount of hire and the variable operating costs which are paid in time charters, it is logical that due to a particular stoppage of the vessel, out of any fault or the will of the Charterer, the hire will be temporarily suspended. This is called “suspension of hire” or “off-hire”.

Every time charter party specifies clearly in its printed clauses or in additional clauses when the Charterer may demand a suspension of hire or be off-hire. In the following cases the hire can or may be suspended:

dry-docking;
to maintain the efficiency of the vessel;
deficiency of Owners' stores;
strike of Master, officers and crew;
breakdown of machinery;
winch breakdown;
deviation or put back

There is thus suspension of hire when the Charterer can not employ the vessel for the purpose for which he hired her. Nevertheless, the suspension must last for at least 24 consecutive hours:

".....and continuing for more than twenty four consecutive hours ...."(BALTIME, clause 11, lines 147-148).

".... the payment of hire overtime, if any, shall cease for the time thereby lost. ...."(NYPE, lines 225-226).

According to the NYPE a suspension of hire is already possible after 2-3 hours. Sometimes, “….. consecutive hours or not ……..” can also be found.

With regard to the dry-docking, the suspension and notice are specifically described. Normal maintenance is always for the ship but abnormal maintenance (e.g. due to the cargo) is for the Charterer’s account.

The “Deviation Clause” has been at the base of a lot of disputes with regard to the beginning and the end of suspension. Therefore, an additional clause called “Putting Back Clause” is usually added to the time Charter agreement:

"Should the vessel deviate or put back during a voyage for a reason which causes hire to be suspended under this Charter Party, hire shall cease to be payable from the commencement of such deviation until the time when the vessel is again ready to resume her service from a position not less favorable to the charterers than that at which the deviation commenced, provided always that due allowance shall be given for any distance made good towards the vessel's destination and any bunkers saved...."

Suppose that the vessel is in position A and that she is bound for B. The vessel must however dry-dock in harbour C so that she has to deviate from A to C and later from C to B. See figure hereunder.

The vessel will have made a deviation equal to (500 + 860) – 1,000 = 360 miles.

If the vessel’s speed is equal to 15 knots, it will have been in “off-hire” for:

360’ / 15 x 24 = 1 day

The Owner will also have to refund the Charterer for one day of fuel.

If the Charterer has to shelter due to e.g. bad weather, then there is no suspension of hire.

Deviation to save lives or property at sea is usually settled on the basis of 50/50 between the Owner and the Charterer. On the other hand, a deviation to disembark e.g. a sick crew member will be totally for Owner’s account.

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