pi_circular Cargo riskInsurance & claims West of England
Defence Guide 09 Jan, 2026 Defence Guide - Hold cleaning in a nutshell (time charters) Julien Rabeux Head of Claims (Singapore) 1. On delivery: The state of the holds on delivery is usually a requirement to validly tender an N.O.R. In the absence of any specific clause, most charters require that the ship be “ready to receive cargo with clean swept holds” (e.g. line 22 NYPE) i.e. she is ready to commence loading without delay. To what standard must the holds/tanks be presented? Courts will look at the wording of clauses and give them their literal meaning. The words “clean dry, free from loose rust flakes/scales and residues of previous cargo” will not mean that the holds can be rejected if “traces” of previous cargo are found, although there are conflicting arbitration decisions on this issue. Very often, the rider clauses will require the ship’s holds to be delivered up to a particular standard. If a ship is to be delivered with holds clean to a high standard, e.g. grain standard or “hospital clean”, but the holds do not comply with this standard of cleanliness, it is not relevant whether the failed holds are still in a suitable condition for the particular cargo to be loaded (e.g. coal); charterers will still be entitled to reject the holds and insist that these are cleaned to the agreed standard before charterers accept delivery of the vessel. Similarly, if a ship is to be “ on delivery…ready to receive any permissible cargo allowed under the charter party …” then holds should be cleaned to the standard of the most sensitive cargo permitted under the charter party. For example, If grain cargoes are permitted, then the hold must be ready for grain cargo, no matter what the intended cargo is. When must the holds be at the required charter party standard? Careful consideration must be given as to the precise wording of the clause. Whilst many clauses will require the holds to be in satisfactory condition on “delivery”, some clauses may only require this to be “upon
Defence Guide - Hold cleaning in a nutshell (time charters)
West of England
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