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Off-Hire, Net Loss and Period Clauses

In The Pythia [1982] 2 Lloyd’s Rep 160 per Goff J at p.168:

Now it is customary to draw a distinction between what have been called "period" off-hire clauses and "net loss of time" off-hire clauses. Historically some time charters have contained period clauses under which in certain specified circumstances the ship goes off-hire for a certain period. The difficulty with such clauses has however been that the ship might be put off-hire during a period when by reason of a specified event her performance was impaired despite the fact that during such period she was partially capable of performing and did so perform the services required of her. See, for example, Hogarth v Miller Brothers & Co., [1891] A.C. 48, and Tynedale Steamship Co. v Anglo-Soviet Shipping Co., (1936) 54 Ll.L.Rep. 341; (1936) 41 Com. Cas. 206. However there are also, perhaps because of possible injustices of this kind, net loss of time clauses, under which the ship is only put off-hire for the "time lost thereby", so that the time charterers cannot escape all liability for hire in respect of time for which they have at least some use of the vessel for the services immediately required of her.

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