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Specific Features of
Off Hire Clauses
Conclusions
Contact Details
New York Produce Exchange Form 1946 (NYPE 1946) and Baltime forms contain net
loss of time off-hire clauses. This means that charterer may deduct from the payable hire
only if, following the occurrence of a qualifying off-hire event, the charterer has actually
suffered a loss of time in view of the whole duration of the time charter 1 . Even if the event
falls within the wording of an off-hire clause, there is normally no off-hire unless time has
been lost.
For example, Clause 21 (a) of Shelltime 4 form provides: on each and every occasion
that there is loss of time... due to...
That means that the charterer is only able to declare the vessel to be off-hire when the
vessels service is immediately delayed or interrupted, e.g., if the vessel is able to continue
to load despite an engine breakdown there is no loss of time.
No. 2013/08
Comparison
of Net Loss of Time and Period
Rule 8.7 contains the contents of previous Clause 41 (Exclusion
Clauses
of Set-Off).
Vessel
has a breakdown and is towed to discharge
Rule 32.16 contains the contents of previous Clause 30 (Negliport.
gence of the Assured), which as a result has been deleted.
Planned Voyage
Ainsured against).
10 DAYS
Rule 38.1 contains the contents of previous Clause 39 (Limitation
SAILING
of Reimbursement)
01.01.12
Rule 38 (Reimbursement)
B
A
Rule 427 (Club
DAYSNot Liable for Interest)
8 DAYS
Rule 43 (Indemnification)
SAILING
Rule
01.01.12
49 (Notices)
TOW
08.01.12
Rule 50 (Forbearance)
DISCHARGE
16.01.12
2. Changes to Substance
Thus the off-hire events of the above cited off-hire clause
are as follows:
2.1 Main Amendments
A) Specific Events
Wording of various Clauses has been amended in order to make
Deficiency
men
or stores
them more
detailedofand
clear.
Most substantial amendments are set
out below:
Fire
General
Actual Voyage
DISCHARGE
ously, caused
of previous
clauses
which aretow
set out
Period renumbering
off-hire = Actual
time taken
to perform
below: from B-C, i.e. 8 days.
to
vi-
ut
Conclusions
nt
s)
Example:
voluntary dissolution, and events in relation to the Entered Ship,
such
as its constructive
loss) and
those,
in which
the P&I
A)
A vessel
is capturedtotal
by pirates
and
the crew
is forced
Cover is terminated with the Managers prior notice. The latter
to
sail her to Somalia where she is detained for 2 months.
group of events include, inter alia, non-payment by the Assured
B) The charterer refuses to pay hire for this period.
of premiums or other sums due and non-fulfilment of other As-
n)
se
ke
s:
ng
an
nt)
ue
ur-
rly
o-
ds
ed
er)
ut
tc.
et
ch
Cosco BulktoCarrier
Co Ltd vthe
Team-Up
Owning
Co Ltdbe
(The
Saldanha),
liabilities
be covered
Managers
should
aware
that the
Entry Should
and Annual
Condition
Warranties,
Warranyou
have Survey
any queries
or Trading
require
any
further information on the above, please contact:
ties and those Warranties set out in the Certificate of Entry.
certain specialist risks have been excluded such as those liabilities, costs and expenses associated with operating salvage tugs,
gas, diving etc. Further the Rule expressly provides that recov-
ery from the Club is subject to the Assured having existing cover
with the Club for those specific risks in terms of which the Assured
seeks reimbursement.
Tanker
Bluethat
Card off-hire
and Pollution
from Contaminating
Substances.
Given
clauses
within charterparties
are
Theoften
Assured
be covered
for all the above
three owners
risks or any
themay
reason
of disagreements
between
and
charterers, DGS Marine Group will be pleased to assist its
one or more of them as expressly stated in the Certificate of
clients in negotiating or drafting a particular off-hire clause,
Entry. Further the Rule is linked to Rule 43 (Indemnification),
or assist if there is a dispute between a charterer and a
more
elaboratedLastly,
underfreight,
Sectiondemurrage
2.2 Rules Added.
shipowner.
and defence (FD&D)
cover offered by the BE&O FD&D Facility, in its turn, will
cover the assureds expenses for legal assistance and
Rule 26 (Penalties and Fines) has been extended to cover
court fees if incurred as a result of the dispute.
penalties and fines in relation to breach of immigration laws or
regulations yet expressly restricts cover in certain instances such
Andre & CIE S.A. v Orient Shipping (Rotterdam) B.V. (The Laconian
Confidence),
[1997] 1 Lloyds Rep. 139.
towage contract.
www.dgsmarine.com