What is Off-hire?
Off-hire is a period during a time charter when the vessel ceases to be at the full and efficient disposal of the charterer and, as a result, the charterer is entitled to suspend payment of hire. Off-hire provisions protect the charterer against paying for a vessel that cannot perform the contracted service.
Common Causes of Off-hire
- Mechanical breakdown or engine failure
- Crew deficiency or inefficiency
- Dry-docking or scheduled maintenance
- Arrest of the vessel
- Detention by port state control
Off-hire Calculation
Off-hire is typically calculated from the moment the vessel ceases efficient operation until it is once again in full working order and available to the charterer.
