Hire Deductions and Reductions: Implications of Resorting to the Self-Help Remedy? By Dr. Arun Kasi
Dr. Arun Kasi, 4-5 Gray's Inn Square
In every time charter, the charterer periodically pays hire to the owner for the period the charterer uses the vessel. While the charter is ongoing, the charterer may have crossclaims against the owner for breach of performance warranty (see Santiren Shipping Ltd v Unimarine SA (The “Chrysovalandou Dyo”)  1 Lloyd’s Rep 159; Federal Commerce and Navigation Ltd v Molena Alpha Inc and others (The “Nanfri”, The “Benfri”, The “Lorfri”)  1 Lloyds Rep 201 HL), loading less cargo (see Compania Sud Americana De Vapores v Shipmair BV (The “Teno”)  2 Lloyd’s Rep 289), etc. Apart from that, a charter may claim to be entitled to pay less hire on account of off-hire. This article discusses the right of the charterer to deduct the crossclaim amount from the hire as well as off-hire and related issues.
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