Here is a good article about off hire / rescue operations written by maritime lawyer Peter Clark




SHIPOWNERS, TIMECHARTERERS ASSESS RESCUE COSTS
Peter D. Clark
March 10, 1995


The duty of a master of a merchant ship to render assistance to those in danger at sea is well
established. Under international law, every nation requires the master of a ship flying its flag to render
assistance to any person found at sea in danger of being lost and to proceed with all possible speed to
rescue persons in distress if so requested. Under U.S. domestic law (46 U.S.C. sec. 2304(b)), a master of
an American merchant vessel who fails to render assistance to those in danger may be fined $1000,
imprisoned for 2 years, or both.



Although the practice of merchant vessels rendering assistance at sea is hallowed by long usage, the
costs associated with modern rescue efforts are not. The question now being raised by some engaged in
chartering vessels is simple: should the shipowner or time charterer pay for time lost when vessels deviate
from their normal routes to assist in rescue efforts. The question was recently presented to three
experienced maritime arbitrators in the New York M/V KITSA arbitration (S.M.A. 3119).



On December 17, 1990, while on a time chartered voyage from Vancouver to Taiwan, the M/V KITSA was
one of three vessels ordered by the Coast Guard to assist the M/V ELOUNDA DAY which was taking on
water. All three vessels altered course and responded to the distress call.



Traditionally, the master of a distressed vessel has discretion to release assisting vessels, which must
otherwise remain on station until no longer needed. The master of the ELOUNDA DAY released two of the
vessels, but ordered the KITSA to remain. The ELOUNDA DAY's crew abandoned ship on December 23
and boarded the KITSA. The ELOUNDA DAY subsequently foundered.



The KITSA's owner notified the time charterer about the rescue deviation. The charterer subsequently
placed the vessel off-hire for five days covering the duration of the deviation by deducting $46,000 from
its hire payment for non-use of the ship.




The shipowner then commenced arbitration to recover withheld hire, claiming the charter party contract
did not contain an off-hire exception for deviating to save life. Therefore, the charterer should pay hire for
the deviation period.



The charterer argued that, despite being mandated by tradition and law, the saving of lives aboard
another vessel is entirely the shipowner's business for which the charterer should not be penalized.




Two of the arbitrators held for the shipowner based on the premise that a charterer must pay hire
continuously except for express exemptions named in the charter party. When charterer failed to add to
the charter party clause granting the vessel liberty to deviate to save life with a simple caveat, "at
shipowner's time and expense" the charterer implied it would accept rescue costs.


In a well reasoned dissent, the third arbitrator held for the charterer. The KITSA was ordered by the Coast
Guard to a vessel's aid, therefore, the KITSA was effectively and legally removed from the charterer's
service. "The immediate obligation . . . to respond to ships in distress rests with the shipowning
community. Although it might sound callous, the interests of the time charterer are financial and do not
rise to the same moral and professional level as the shipowner. . . . Indeed, the laws of many maritime
nations . . . now recognize claims for life salvage and in some instances, maintain funds to reimburse such
expenses."



The split decision in the KITSA charter dispute indicates that assessing costs for rescues at sea remains
unsettled under American law. The charter party caveat seems to be "when in doubt, write it out."