On/Off Hire Survey

A time charter without an on-hire survey is an agreement built on assumptions.

At the end of the charter, one party will believe the vessel was returned in the same condition it was delivered. The other party will believe it was not. Without a documented baseline from an independent surveyor at the time of delivery, there is no way to resolve that disagreement on anything other than each party’s memory and interest. That is the origin of most charterparty disputes that end up in arbitration.

An on-hire survey eliminates the ambiguity. It creates a documented record of the vessel’s condition and bunker quantities at the moment the charter begins. The off-hire survey creates the same record at redelivery. The difference between those two documents is the factual basis for any claim that follows. No assumption. No retrospective disagreement. Facts.

The charter context on the Atlantic coast

Atlantic charter operations create specific on/off hire dynamics that do not arise in more sheltered trading areas.

Vessels chartered for Atlantic trade experience more wear on deck equipment, mooring gear, and hull coatings than equivalent vessels in sheltered-water trades. A vessel delivered in good condition at Leixões for an Atlantic coasting charter may come back from a winter trading season showing wear that is entirely consistent with what the trade produces. Equally, it may show damage or neglect that was not present at delivery.

Distinguishing between trade wear and charterer neglect requires a surveyor who knows the trade. I know what a vessel looks like after a season on the Atlantic coast. I know what the weather does to deck equipment, to mooring lines, to hatch seals, to hull plating in the area of anchor pocket wash. That knowledge is what makes the on/off hire survey defensible when the inevitable question arises about what the voyage produced versus what the charterer caused.

What the survey covers

On-hire and off-hire surveys follow a consistent structure so that the two documents can be compared directly. Every item inspected on delivery is inspected again on redelivery. Any change is documented and categorised.

• Hull condition. External condition topsides, at and below the waterline where accessible. Condition of antifouling, anodes, sea chests. Any new damage, scrapes, or contact marks noted and measured.
• Deck and deck machinery. Windlass condition and brake function, winches, mooring equipment. Condition of mooring lines, towing equipment, anchor and chain. Hatch cover condition and weathertightness.
• Cargo spaces. Cleanliness, condition of tank or hold coatings, any staining or contamination. Structural condition of cargo-space surfaces and fittings.
• Engine room. General condition, evidence of leaks or spillage, bilge condition. Condition of machinery not covered under a separate technical survey where this is agreed.
• Accommodation. General condition. Any damage beyond fair wear and tear.
• Bunker survey. Quantity and quality of all bunkers, lubricants, and fresh water onboard at delivery and redelivery. Tank soundings, ROB calculation, bunker sampling where required by the charterparty. This section of the report is often the most disputed: accuracy and methodology matter.
• Certificates and documents. Status of statutory and class certificates at delivery and redelivery. Any new conditions or deficiencies noted during the charter.

Joint surveys

It is possible for one surveyor to attend jointly and issue a single report that both parties accept. It is also possible for owner and charterer to each appoint their own surveyor, who then attend together and either issue separate reports or a joint one where findings are agreed.

I have conducted both. Where parties are in agreement that a joint survey is preferable, I will discuss the approach with the other surveyor in advance so that the survey is efficient and the report covers everything both parties require. Where parties appoint separately, I represent my client’s interest while conducting the inspection to the same factual standard regardless.

Timing and booking

On-hire surveys are time-sensitive. The vessel should be inspected as close as possible to the moment of delivery. Once cargo operations begin, conditions change and items become inaccessible. Contact me with the vessel details, expected delivery date, and berth location as soon as you have them. Give me as much advance notice as you can.

I cover Leixões, Viana do Castelo, Aveiro, Figueira da Foz, Setúbal, Sines, and ports further along the Portuguese coast. For vessels delivering at Spanish Atlantic ports or the Atlantic islands, contact me and we will discuss options.