FAQ
About the calculation.
General information only; the off-hire clause wording governs.
How is off-hire calculated?
Under a period off-hire clause, hire is deducted for the whole of the period during which the full working of the vessel is prevented by an off-hire event, pro rata to the daily hire. Under a net loss of time clause, only the time actually lost to the charterers is deducted. This calculator applies the period you enter.
Are bunkers consumed during off-hire deductible?
Many charter parties provide that fuel consumed while the vessel is off-hire is for owners’ account, so its value is deducted together with the hire. Check the clause: the wording, and whether the vessel was steaming or idle, matters.
What events put a vessel off-hire?
Typical listed events include deficiency of men or stores, breakdown or damage to hull or machinery, dry-docking, detention by average accidents, and, depending on the form and any rider clauses, arrest or detention by authorities.
Can charterers deduct off-hire from hire in advance?
Under English law, charterers may in principle make a reasonable, good-faith deduction for off-hire from hire. An unjustified deduction can expose them to withdrawal of the vessel, so deductions should be calculated carefully and documented.
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