Time Charter Hire

Hire is paid for all periods that the vessel is available to be used by charterers, whether they have any work for her to do or not. Hire is payable in advance, usually every 15 days, and is normally expressed as a certain amount ‘per day’. Hire is also payable pro rata for any part of a day. Time charters contain a clause that gives owners the right to withdraw the vessel if payment of hire is delayed or insufficient. Such withdrawal is permanent, not merely temporary. An exception to this is the NYPE 1993 (New York Produce Exchange), which gives owners a right temporarily to suspend the vessel’s services in the event of default in payment. Such a right is additional to the right to withdraw the vessel permanently.