RightShip or Off-Hire? How Clause 77 Can Pause Your Earnings at Berth

 🚢 RightShip or Off-Hire? How Clause 77 Can Pause Your Earnings at Berth

When your vessel's rating delays cargo, this clause decides who pays the price.

 

❓ Before You Dock, Ask Yourself:

1. Is your vessel actively RightShip approved as per your charter party obligations?
2. Can a lack of RightShip clearance put your vessel off-hire—even if it arrives at port?
3. Do you have a system to track RightShip status and survey follow-up in real time?

 

📜 Clause Breakdown: Clause 77 – RightShip Approval Warranty

“Owners confirm that the Vessel will remain RightShip recommended / approved throughout the currency of this Charter Party.”

This clause is not a formality—it's a warranty. Clause 77 binds owners to maintain continuous RightShip approval for the full duration of the charter. It’s an operational guarantee that the vessel is "green-lighted" by RightShip to handle cargo safely and reliably under the charterer’s vetting framework.

In the cited case, the vessel arrived at Teluk Rubiah but was not RightShip approved at the time of arrival. The charterer invoked Clause 77 and placed the vessel off-hire from arrival until full RightShip clearance was restored.

 

💥 Implications of Non-Compliance

• Off-Hire Exposure: Charterers may legally place the vessel off-hire from the moment it is deemed unfit for cargo operations, even if physically present.
• Deviation Risk: Any voyage deviation or delays linked to failed vetting will be for owner’s time and account.
• Commercial Disruption: Missed berths, delayed laycans, and demurrage losses often cascade due to RightShip issues.
• Legal Exposure: Charterers may cite breach of clause for damages under English law precedents where continuous vetting approval was not upheld.

 

⚠️ Common Pitfalls

1. Delayed Survey Requests: Relying on RightShip to act fast post-arrival is risky—clearance may take days or weeks.
2. Failure to Monitor Score: Owners overlook declining scores post-inspection, unaware the vessel is flagged.
3. Lack of Contingency: No backup vessel or alternate loading port means lost revenue and reputation.

 

✅ Actionable Steps for Ship Operators & Owners

1. Track RightShip Status Proactively
• Monitor your RightShip Safety Score regularly (3 or higher is generally required).
• Use vetting portals and auto-alerts to detect issues early.
2. Schedule Inspections Timely
• Initiate RightShip inspection or reassessment well in advance of loading dates.
• Factor in time for preliminary review, corrective actions, and final approval.
3. Coordinate Closely with Charterers
• Inform charterers proactively of vetting progress.
• Avoid arrival at load port without final clearance—it could mean immediate off-hire.
4. Document Everything
• Maintain emails, status logs, and confirmation of submissions to RightShip.
• Share RightShip dashboards or Inspector feedback if delays occur.
5. Review Charter Party Clauses Carefully
• Ensure your CP doesn't just require approval "at delivery" but "throughout the charter".
• Seek legal advice to insert reasonable cure periods or exceptions, if possible.

 

📌 Conclusion: Don’t Let Vetting Sink Your Voyage

Clause 77 is more than a checkbox—it's your operational license. A ship may be seaworthy, but without RightShip’s green light, she may as well be at anchor on the owner's dime.

✔️ Keep your approvals current
✔️ Communicate clearly with stakeholders
✔️ Vet your vetting procedures before charterers vet your vessel

 

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⚠️ Disclaimer:

This article is for informational purposes only. For vessel-specific advice, please consult your P&I Club, legal counsel, or RightShip representative.