Hire Payment Clause

The hire payment clause gives the owner the right to withdraw the ship from charter if hire payment is not made on the due date.  Many charters, however, contain an “anti technicality clause” which states that if the hire payment is late, the owners will defer exercising their right to withdraw the ship to give time(usually 48 hours) to check whether the lateness is due to a hitch in the banking system rather than actual default by the charterer. The place of re-delivery will be inserted. Whilst the charterers will have endeavoured to agree a specific port for delivery they will try to get agreement to the widest possible range for redelivery especially if they cannot predict where the ship will end her final voyage. Some charters include a clause detailing how long (usually 24 hours) will be allowed for the owners to correct an imobilising fault before the ship is put off-hire. There will always be clauses detailing what the owners will provide and what the charterers have to provide. It is customary for there to be a clause laying down instructions to the Master concering the signing of bills of lading. Like a voyage charter there will be clauses covering arbitration, brokerage and protection clauses covering such things as war risks.