Wholly or partially deprived of income

The vessel is wholly deprived of income when it is unable to operate due to the damage. Normally this will correspond to the period when the vessel is physically unable to operate. If the vessel is able to operate with the damage, the situation might be that it is only partially deprived of income. Typical examples are where the vessel has to operate at reduced speed due to engine damage or the cargo capacity is reduced due to damage to the hull or damage to the cargo handling equipment. However, the terms of the contract of affreightment may put the vessel wholly off-hire even if the vessel is able to perform the services required. This will be the case if the charterparty provides that the vessel will remain off-hire under the charterparty until it is restored to its earlier condition, see 5.2.1 below.

Where the vessel is partially deprived of income compensation is granted on a pro rata basis, see 5.3.1 below.