Off-Hire in France: Suspending Time Charter Hire

A bulk carrier on time charter spends two and a half days at anchor off Fos with an auxiliary engine breakdown. The charterer deducts three days’ hire from its next monthly payment; the owner objects, argues that the repair was carried out while the vessel was in any event waiting for a berth, and threatens to withdraw the ship. Who is right?

The statutory rule and the contractual rule

French law lays down the principle: time-charter hire is not payable while the vessel is commercially unusable, provided the immobilisation exceeds twenty-four hours (Article D. 5423-16 of the French Transport Code). The owner must indeed, throughout the charter, keep the vessel in a seaworthy condition, properly manned and equipped (Article R. 5423-11).

These provisions are default rules, and the charterparty almost always displaces them. The off-hire clause of NYPE 2015 (clause 17) lists the events that suspend hire, among them deficiency of personnel or stores, breakdown of or damage to hull, machinery or equipment, grounding, detention following damage, and dry-docking, and adds “any other similar cause” preventing the full working of the vessel. The word “similar” narrows the list: a cause unrelated to those listed does not, in principle, give rise to off-hire. The exact list must be read in the clause as signed, which is often amended. Hire ceases for the time actually lost.

What the charterer must prove

The dispute turns on two points. First, the event: it must fall within the list in the clause. A delay caused by a port strike or by congestion is not, in principle, an off-hire event, since it does not affect the vessel itself. Second, the loss of time: if the vessel, despite the breakdown, would have waited for its berth in any event, the owner will argue that no time was lost. Position records, daily reports and port notices provide the evidence.

Do not confuse deduction with non-payment

A charterer that deducts a disputable off-hire claim runs the risk of the vessel being withdrawn if the deduction is held to be unjustified (see the page on withdrawal of the vessel). A deduction must be reasoned, quantified and notified in writing, with supporting documents. Where there is doubt, the safer course is to pay under reserve and claim afterwards.

One year to bring a claim

Claims arising from the charterparty are time-barred after one year (Article L. 5423-4 of the Transport Code), unless the charter or the applicable arbitration rules provide for another period. The Paris Maritime Arbitration Chamber (Chambre arbitrale maritime de Paris) frequently hears these disputes.

What the firm checks first

The charterparty form and its off-hire clause.
The nature of the event: the vessel itself or an external cause.
The time actually lost, as shown by the reports and position records.
The notice of deduction and the reasons given for it.
The arbitration clause and the time limit for bringing a claim.

For the firm’s involvement, see Charterparties and demurrage.

Further reading

This analysis is part of the firm’s work in maritime law.

Frequently asked questions

Does a breakdown lasting less than twenty-four hours suspend hire?

Under the default statutory rule, no (Article D. 5423-16 of the Transport Code). The charterparty may provide otherwise.

Is port congestion an off-hire event?

In principle no, because the hindrance does not relate to the vessel. The wording of the clause is decisive.

May the charterer deduct off-hire from its next payment?

Charterparties generally allow it, but an unjustified deduction exposes the charterer to withdrawal of the vessel.