Speed and consumption warranty
Meaning
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.
Also written as Performance warranty, Speed and consumption, About speed
Speed and consumption warranty explained
Warranties are usually given “about”, which allows a small tolerance, and only in good weather, often defined by wind force and sea state. Performance is checked from noon reports or by a weather routing company.
If the ship underperforms, the charterer claims for time lost and extra fuel burned. Overperformance may or may not offset it, depending on the wording.
Related terms
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.
Off-hire
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.
Bunkers
Bunkers are a ship's fuel, mainly very low sulphur fuel oil (VLSFO), high sulphur fuel oil (HSFO) for scrubber-fitted ships, and marine gasoil (MGO).
EEXI
EEXI is the IMO's one-off technical efficiency standard for existing ships, in force since 2023, often met by limiting engine power.