Redelivery

What it does

A redelivery clause sets out the charterer's obligations at the end of the time charter: where the vessel is to be redelivered, within what time or date range, and in what condition. Time charter hire runs until redelivery, so the clause defines the moment the charterer's use of the ship, and its obligation to pay, comes to an end, and it fixes the geographic and temporal limits on that return.

It also typically requires the charterer to give notices of expected redelivery, counting down as the charter nears its end, so the owner can plan the ship's next employment. The clause addresses the condition in which the vessel must be returned, ordinarily in like good order as on delivery, fair wear and tear excepted, and it connects to the bunkers and on-hire or off-hire survey provisions that settle the accounts at redelivery.

Commercial effect

Redelivery terms allocate the risk and cost of the transition out of the charter. The redelivery range and timing affect how easily the owner can position the ship for its next fixture, and the notice obligations give it the information to do so. A redelivery that is late, out of range, or in poor condition can disrupt the owner's plans and give rise to claims, so the clause carries real commercial weight at the end of the charter.

The condition and bunkers requirements settle the closing accounts between the parties. The ship must usually be returned in a comparable state to delivery, with the bunker quantities and prices reconciled, so the clause is read with the delivery, bunkers, and survey provisions. Disputes often arise over the timing of the last voyage and whether redelivery will fall within the agreed window, which links closely to the last-voyage and early-redelivery provisions.

Owner's perspective

The owner wants a clear redelivery range and firm notice obligations, so that it knows where and when it will get the ship back and can fix its next employment with confidence. It relies on the countdown notices to plan, and it wants the redelivery condition defined so that the vessel is returned in a state comparable to delivery, fair wear and tear apart, without hidden deterioration.

The owner is concerned about late redelivery or redelivery outside the agreed area, which can leave the ship out of position and disrupt the follow-on fixture. It therefore wants the clause to address the consequences of redelivery beyond the charter period, linking to the last-voyage provisions, and to ensure the bunkers and condition are properly accounted for so the charter closes cleanly.

Charterer's perspective

The charterer wants enough flexibility in the redelivery range and timing to complete its intended employment of the ship without being forced into an awkward or uneconomic final voyage. It values a redelivery window and a reasonable notice regime that it can realistically meet given the uncertainties of voyage timing, weather, and port delays near the end of the charter.

The charterer is mindful of the consequences of redelivering late or out of range, since these can expose it to damages, and it manages the last voyage carefully to fall within the permitted window. It also wants the condition and bunkers obligations to be fair and clearly measured, so that the closing accounts reflect ordinary use of the ship rather than exposing it to claims for normal wear.

Negotiation points

• The redelivery range or port and the time or date window for redelivery.
• The schedule of redelivery notices the charterer must give as the charter ends.
• The condition in which the vessel must be redelivered, and the wear-and-tear exception.
• The interaction with the last-voyage, early-redelivery, bunkers, and survey provisions.

Common variations

• Redelivery within a stated geographic range on giving defined notices.
• Redelivery at a single named port or place.
• A clause requiring redelivery in like good order, fair wear and tear excepted.
• Redelivery terms tied to a bunkers reconciliation and an off-hire survey.