Off-hire
Meaning
Off-hire is a period when a time-chartered ship cannot work as required, such as during a breakdown, so the charterer stops paying hire.
Off-hire explained
Off-hire clauses list the events that stop hire, typically breakdown, deficiency of crew or stores, dry-docking and detention caused by the ship. Most tanker charters use a net loss of time test: hire stops only for the time actually lost.
Off-hire is a frequent dispute area, especially for time lost to vetting failures, crew illness and port state control detentions.
Related terms
Hire
Hire is the payment for a ship under a time charter, normally a fixed amount per day, paid in advance at regular intervals.
Time charter
A time charter hires the ship for a period at a daily rate; the charterer directs its employment and pays for voyage costs like bunkers and port fees.
Speed and consumption warranty
A speed and consumption warranty is the owner's promise on a time charter that the ship can steam at a stated speed on a stated daily fuel consumption.