Discussion Of Rented Off-hire Clause

Every time charter party must have an off-hire clause under which the charterer can discharge his obligation of continuous paying hire during the chartering period. Under the English common law, the obligation to pay hire is unabated from the time of the vessel's delivery until the time of her redelivery. The charterer cannot postpone, deduct, reject paying the due hire relying on any reason. That is to say, the charterer shall carry all the risk of time loss during the chartering period alone. But as to the charterer, the object of paying hire is to utilize the ship full efficiently. It's reluctant to paying hire still while the ship is less efficient. To protect his interest, shift the risk of time loss, the charterer turns to the off-hire clause of the time charter party. In practice, the parties of the charter party always argue on the right and obligation arising from the off-hire clause. So it's necessary to understand and construe the clause correctly and properly. This article analyzes the clause on the basis of NYPE chartering form which is most frequently used and contains six chapters.Chapter 1 expatiates on the legal property of the clause. To maintain the systematical expatiation, the property of the time charter party and the hire is introduced at first.The off-hire is typical no-fault provision, and operates independently of fault or breach. The charter cannot defend himself on no fault or breach.The off-hire clause, being the nature of an exception, should be construed narrowly against the charter, since it is included for his sole benefit. If there is a doubt as to what the words mean, then those words must be read in favor of the owners because the charterer is attempting to cut down the owner's right to hire.As an allocation of risk, distinct from the damage breach, the charterer has no duty to act reasonably in order to mitigate its loss and to credit any savings in cost.Chapter 2 expatiates on the construction of the off-hire clause and sorts into 2 kinds - net loss of time clause and period clause, according to the test of resumption of hire. In addition, the differences between the delay and detention also referred and emphasized.Chapter 3 refers to the proximate cause in the off-hire event and its application in practice. Only when the dominating cause of the delay is the enumerated cause of the off-hire clause, the off-hire appeal can be upheld.Chapter 4 analyzes the relation of off-hire clause and employment and indemnity clause. Unless the master can demonstrate the enough evidence to show it will danger the ship and crew according to the order of the charterer, he must act under the orders and directions of the Charterer as regards employment and agency. If not, the delay from the master's decision would lead to off hire.Chapter 5 analyzes the enumerated cause of the off-hire clause and compares the differences between several typical time charter forms.Chapter 6 is the conclusion of this article and relation between the off hire and marine insurance.