Off-Hire Clause

An Off-Hire Clause is a provision in a lease or rental agreement, particularly in shipping and equipment rental, that specifies the conditions under which the rental period is paused and the owner does not receive payment. This typically occurs if the equipment or vessel is damaged, malfunctioning, or otherwise unable to be used for its intended purpose. During this off-hire period, the lessee is not charged rental fees, as they are not able to use the asset. The clause ensures both parties understand their rights and responsibilities regarding equipment availability and payment.