Glossary · Chartering

Off-hire

A period during a time charter when hire stops because the ship cannot work fully for the charterer, for a cause listed in the charter's off-hire clause.

Term

OFF-HIREALSO: OFF HIRE · OFF-HIRE CLAUSE · DEDUCTIONS FROM HIRETOPIC: CHARTERINGSOURCES: 2

Reviewed 2026-10-10

Definition

Hire runs continuously from delivery to redelivery unless the off-hire clause stops it. The classic clause, from the NYPE 1946 form, suspends hire for time lost when one of the causes it lists — typically deficiency of men or stores, breakdown of machinery, damage to hull, dry-docking — prevents "the full working of the vessel". The listed causes form a closed list: "any other cause" covers only similar causes unless the word "whatsoever" is added.[1]

Clauses come in two kinds. A "period" clause takes the ship off hire from the event until she is efficient again; a "net loss of time" clause — like NYPE clause 15 — deducts only the time actually lost. The burden is on the charterer to prove that full working was prevented, by a listed cause, and that time was lost.[1,2]

A charterer who deducts hire it was not entitled to risks the owner withdrawing the ship, so off-hire claims are worth documenting carefully — log extracts, engine records and the time each event started and ended. A late spare or a missing safety item can put a ship off hire, which is why owners pay for fast delivery.[1]

Sources

  1. [1] The Shipowners’ Club — Off-hire issues (11 Aug 2023) — https://www.shipownersclub.com/off-hire-issues
  2. [2] The Swedish Club — Deductions from hire (FD&D guide, PDF, Aug 2019) — https://www.swedishclub.com/uploads/2023/12/FDD-Guide-1-Aug-2019-Deductions-from-hire.pdf

A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.