Off-Hire Clause

Summary of Off-Hire Clause

Also known as the breakdown clause, a provision in a time charter party that charter hire shall cease from the breakdown or inability of the vessel to perform until the condition is remedied. A common breakdown clause provides that hire shall abate as the result of any detention of or loss of time due to deficiency of men or stores, fire, breakdown of or damage to hull, machinery or equipment, grounding, dry- docking, cleaning of boilers, fumigation (including deratization and extermination of vermin) and guarantee unless occasioned by the nature of the cargo carried or ports visited … or to any cause whatsoever rendering the vessel inefficient for duties.

In some charter parties, hire continues for a specified period, usually forty-eight hours, following breakdown.

(Main Author: William J. Miller)