It is common for the parties to agree on terms in time charters which allow a charterer to place a vessel off-hire for a specific period of time as a result of a failed hold inspection on delivery or prior to loading the first cargo.
Such clauses constitute an exception to a charterer’s general obligation to pay hire continuously and will often stipulate certain conditions that must be met before the vessel is rendered off-hire.
This briefing provides guidance for owners and charterers on such clauses, addressing both (1) the mechanics of determining an off-hire period; and (2) the standards of cleanliness required to pass inspection, if a potential off-hire period as a result of an inspection failure is to be avoided.
Full advisory at the following link.
https://north-standard.com/insights/publications/off-hire-hold-inspections/