Hold It Right There! — Why Hold Condition on Delivery & Redelivery Can Make or Break a Voyage

🚢 "Hold It Right There!" — Why Hold Condition on Delivery & Redelivery Can Make or Break a Voyage

⚓ 3 Quick Questions to Spark Your Curiosity:

1. Can your vessel be rejected at delivery due to cargo hold condition?
2. Are you aware that charterers might return the vessel with dirty holds?
3. Do your vessel teams know the financial risks hidden in a “cleanliness clause”?

 

📖 Clause Breakdown: Hold Condition on Delivery & Redelivery

The Clause:

“Generally we do require your vessel to be in a well maintained and clean condition, with no signs of rust, scale or previous cargo residues as well as ready and suitable for the loading of any permissible cargo under this charter. Please also always refer to our detailed voyage instructions / separate instructions for the required hold condition of your vessel on delivery. Charterers have the option to redeliver your vessel with unclean holds and will very likely make use of this option accordingly.”

✅ What It Means:

• Delivery: Owners must ensure the vessel’s cargo holds are clean, dry, odour-free, and ready for immediate loading of any permissible cargo. This includes:
• No scale or rust flakes
• No remnants of previous cargo
• No oil stains or moisture
• Redelivery: Charterers can return the vessel with dirty holds, especially if permitted by the charter party. This could mean additional cleaning costs and off-hire time for owners.

💥 Implications:

• For Owners: You bear responsibility to deliver the ship in “ready-to-load” condition. Any failure may lead to:
• Voyage delays
• Off-hire claims
• Rejection by shippers/charterers
• For Charterers: Flexibility to return vessel with unclean holds means cost savings, but must be exercised carefully and as per the contract.

⚠️ Common Pitfalls:

• Assuming 'clean' = 'good enough': Charterers may reject holds that are only “visually clean” but not suitable for next cargo.
• Overlooking cleaning after cargoes like cement, coal, or petcoke, which leave stubborn residues.
• Ignoring laycan impact: If holds aren’t ready in time, cargo interests may cancel the fixture.

📚 Relevant Commentary:

• BIMCO’s HOLD CLEAN clause sets the benchmark for “cargo-ready” condition.
• English case law (e.g., The Reborn [2009]) emphasized the importance of full compliance with cleaning obligations — even if visual inspection passes, chemical testing might fail.

 

🛠️ Actionable Steps for Operators, Owners & Managers

1. Pre-Delivery Inspection: Arrange an internal or third-party hold inspection before delivery.
2. Hold Preparation Manual: Train crew to follow checklists for different cargoes (grain, cement, fertilizer, etc.).
3. Photo Evidence: Maintain time-stamped photos of holds to support condition at delivery and redelivery.
4. Voyage Instructions Review: Always refer to any additional requirements mentioned in voyage orders.
5. Expect Redelivery in Dirty Condition: Budget and plan for possible hold cleaning at redelivery — especially if next voyage is sensitive (e.g., grains or foodstuffs).
6. Charter Party Clarity: Ensure your C/P clearly defines:
• The hold condition at delivery
• Charterers’ rights on redelivery
• Consequences for non-compliance

 

📢 Conclusion: Don’t Let Dirty Holds Dirty Your Record

In dry bulk operations, the hold condition clause might seem routine—but its financial and operational implications are far-reaching. Make sure your vessel, crew, and operations team are aligned with charter party expectations to prevent costly surprises.

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⚠️ Disclaimer:

This post is for general informational purposes only and does not constitute legal or contractual advice. Always refer to your specific charter party terms and seek professional advice for individual cases.