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External events, delay and who pays A number of issues can arise for shipowners and charterers when faced with a loss of time caused by external events outside their control. For example, the closure of a waterway that prevents a vessel from leaving or entering a port, or causes delays during the vessel’s voyage. Articles Jonathan Biggins Published: May 20, 2024 Contact author Download article pdf Charterparty considerations  Whether a time or voyage charter, the terms of the relevant charterparty will need to be considered when addressing whether it is the vessel owner or charterer that ‘pays’ for the delay to the vessel.  Time Charters (and off-hire) Under a standard time charter, a vessel remains on hire unless there is an “off-hire event” as defined by the charter: “ the risk of delay is fundamentally on a time charterer, who remains liable to pay hire in all circumstances unless the charterer can bring himself within the plain words of an off-hire provision. ” [Rix LJ, The Doric Pride [2006] 2 Lloyd’s Rep. 175]. The list of off-hire events preventing the full working of the vessel will vary between charterparties but will usually include events such as deficiency of men or stores, fire, breakdown or damages to hull or machinery or groundings and average accidents to ship or cargo. As such, it is unlikely that port closure or delay on a voyage caused by an external event would qualify as an off-hire event, unless specifically provided for in the charter. Therefore, provided the vessel remains fully efficient and able to follow charterers’ orders, charterers would likely be obliged to pay hire and pay for bunkers during the waiting period.  If an off-hire clause includes the words “ any other cause ” at the end of the list of off-hire events, this will have the effect of widening the list of events to events similar in nature to those specifically listed in the off-hire clause. However, it is unlikely these words will extend to external events. The
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pi_circular Steamship Mutual ·2024-05-20

External events, delay and who pays

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