vClean Holds, Clear Terms: Understanding Clause 50 in Dry Bulk Chartering

“Clean Holds, Clear Terms: Understanding Clause 50 in Dry Bulk Chartering”

Are You at Risk of Off-Hire Due to Hold Cleanliness?

• Can a single failed hold inspection cost thousands in off-hire penalties?
• Are you certain your crew knows what "ready in all respects" actually means?
• Could your Charterer legally walk away if your holds don't pass?

If you’re unsure about any of these, you need to read on.

 

Understanding Clause 50 – Cleanliness: A Critical Charter Party Obligation

In dry bulk shipping, Clause 50 – often known as the "Cleanliness Clause" – can have significant operational and financial consequences. This clause governs the cleanliness condition of a vessel’s holds before loading and between cargoes. While it seems straightforward, it carries multiple layers of responsibility and risk allocation for both Owners and Charterers.

🔍 What the Clause Says – and What It Really Means

1. Cleanliness on Delivery / Before First Loading

• Requirement: Vessel must be “ready in all respects” to load any permissible cargo (except alumina/chrome ore) with holds:
• Clean-swept
• Washed with fresh water
• Dried
• Free of salt, rust scale, or previous residues
• Verification: Inspected and passed by:
• Local competent authorities and
• An independent surveyor

⚠️ Pitfall: If the vessel fails, it goes off-hire immediately until passed. Owners must bear:

• Costs of shore gangs
• Bunkers consumed
• Time lost

2. Intermediate Hold Cleaning

• When: Between trips if requested by Charterers
• By Whom: Ship’s crew – if safe and allowed by local regulations
• Fee: USD 700 per hold (even for sweeping only)
• Fresh Water: Supplied by Charterers
• No Guarantee: Owners aren’t liable if holds still fail inspection afterward

⚠️ Tip: This clause shields Owners legally from liability if crew cleaning fails to meet standards, provided reasonable effort is made.

3. Use of Shore Labour and Chemicals

• Shore cleaning costs and arrangements = Charterers' account and time
• Charterers must supply:
• Detergents
• High-pressure applicators
• Pumps (not considered basic vessel equipment)

4. Waste Disposal (MARPOL Compliance)

• All costs, deviation time, and disposal responsibility = Charterers’ burden
• Must follow MARPOL Annex V rules on waste and washing water

 

🛠 Practical Tips & Pitfalls to Avoid

For Owners:

• Document all hold-cleaning efforts with time-stamped photos and crew logs
• Pre-inspect using third-party surveyor before reaching the load port
• If charter excludes certain cargoes like alumina, clarify in laycan discussions

For Charterers:

• Always budget and plan for shore labor when sensitive cargoes are involved
• Don’t assume vessel can use its equipment for specialized washing
• Maintain compliance logs for MARPOL Annex V – noncompliance could mean fines

Common Dispute Example:

• A vessel failed hold inspection at Rizhao due to rust flakes despite fresh water washing. The surveyor deemed the condition unsuitable for grain. Result: 2.5 days off-hire, cost of shore gangs, and lost laycan. The clause clearly supported Charterers.

 

✅ Actionable Steps for Ship Operators, Managers, Owners, and Charterers

Role	Action
Owners	Conduct pre-arrival inspections and keep a checklist based on past rejections
Charterers	Arrange shore gang cleaning early if sensitive cargoes (like grain) are upcoming
Managers	Train crew on hold cleaning SOPs, photographic evidence, and surveyor expectations
Operators	Confirm fresh water availability; track all cleaning costs and downtime for records

 

📢 Final Thoughts: Clean Holds Save Time and Money

Clause 50 is more than a routine checklist — it's a contractual safeguard that can save or sink a voyage’s profitability. Whether you're an Owner or Charterer, understanding your rights and obligations under this clause is vital. Being proactive not only ensures compliance but also avoids costly disputes.

 

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⚠️ Disclaimer:

This blog is intended for general informational purposes only. It does not constitute legal advice. Readers should consult their legal or commercial advisors for specific guidance related to their charter party agreements or disputes.