Clause 40 Decoded: Who Pays the Surveyor at Sea? A Simple Guide to On/Off-Hire Surveys

⚓ Clause 40 Decoded: Who Pays the Surveyor at Sea? A Simple Guide to On/Off-Hire Surveys

❓Curiosity Check: Answer These Before You Sail!

1. Ever wondered who pays for on/off-hire surveys?
2. Is time really money when it comes to bunker checks?
3. Can a simple clause lead to costly charter party disputes?

If you said “yes” to any, then this post is a must-read. Let’s break down Clause 40 and make sure you stay sharp at sea—and even sharper in your contracts.

 

🧾 Clause 40 - On/Off-Hire Survey

"Charterers to appoint a surveyor acting on their behalf for performing a joint on and off hire bunker and/or condition survey.
Joint on hire survey to be in Owners’ time and joint off hire survey to be in Charterers’ time. Expenses to be shared equally."

 

📚 Clause Breakdown: What It Means (Without the Legal Jargon)

🔍 What's the Purpose of On/Off-Hire Surveys?

These surveys protect both Owners and Charterers by:

• Recording the bunker quantities and vessel condition at delivery and redelivery.
• Avoiding disputes over fuel claims or damage accountability.
• Providing a legal record of the ship’s status.

⏱️ Whose Time Is It, Anyway?

• On-hire survey: Happens on Owners’ time. Why? Because they’re delivering the vessel—it’s their responsibility to ensure it’s ready.
• Off-hire survey: Happens on Charterers’ time. They’re giving the vessel back, so they bear the clock.

💰 Who Pays the Bill?

Even though the Charterers appoint the surveyor, the cost is shared 50/50. This includes:

• Surveyor fees
• Logistics (if any)
• Report preparation

⚠️ Common Pitfalls to Watch:

• Single surveyor appointed: Ensure both parties agree in writing.
• Delay during surveys: Can lead to off-hire disputes. Define clear survey timing in advance.
• Missing condition check: Don’t just rely on bunkers—document the physical condition too.

🧑‍⚖️ Legal Commentary & Industry Practice:

• BIMCO Guidance: BIMCO generally supports the standard use of joint surveys to maintain neutrality and fairness.
• Case Example: In The Socol 3 [2000], disagreements arose because the off-hire survey occurred without proper notice. Always notify and document.

 

⚙️ Actionable Tips for Stakeholders:

👨‍✈️ For Ship Operators:

• Keep survey checklists ready in advance.
• Ensure Chief Engineer and Master are briefed to assist with accuracy.

🧑‍💼 For Owners:

• Clarify in pre-fixture negotiations who bears time and cost.
• Insist on a joint surveyor presence—don’t accept unilateral surveys.

📋 For Charterers:

• Appoint a neutral, experienced surveyor.
• Book surveys well in advance to avoid delays.
• Be ready to share detailed reports post-survey.

 

🧭 Conclusion: Survey Smart, Sail Smart

Clause 40 may look simple—but it can decide who gains or loses thousands of dollars per voyage. Remember: clarity today avoids conflict tomorrow.

👉 Take Action:
Have you had a tricky on/off-hire survey experience? Drop it in the comments!
💬 Like, comment, and share this post with your fellow seafarers.
🚢 Follow @ShipOpsInsights with Dattaram for sharp, practical wisdom from the wheelhouse to the boardroom.

#ShipOpsInsights #CharterPartyClarity #BunkerSurvey101 #ShippingLawSimplified #OnHireOffHireExplained

 

⚠️ Disclaimer:

This blog is for educational purposes only. It does not constitute legal advice. Always consult a maritime lawyer or chartering expert for specific contractual guidance.