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ARTICLE · 14 AUGUST 2013

Charterers’ Claims For Off-Hire And Damages Fail Where The Vessel Failed A Pre-Loading Inspection

This decision highlights the point that whether the charter contains a "period" or "net" off-hire clause can significantly affect the off-hire position.

United KingdomTransport

London Arbitration 11/13

The Vessel was trip-chartered on an amended Asbatime 1981 form, which contained the following clauses:

Clause 66: "Without prejudice to any of their other rights under this charter, it is understood that charterers shall be entitled at any time to carry out ultrasonic hose or other testing of the vessel's hatch covers ... The cost and time for such testing shall be borne by charterers unless any deficiency is found, in which case same shall be for owners' account and the vessel shall be off-hire for any time lost thereby ... and other costs incurred which are directly related expenses as a result of such deficiency shall be for owner's account."

Clause 91: "Vessel's holds on delivery to be completely clean ... and in every way ready and suitable to load charterers' intended cargo(es). If the vessel is rejected at loading port(s) by charterers'/shippers' surveyors or competent authorities, then the vessel to be off-hired from the time of

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