Assessment of the Effects of COVID-19 Pandemic on Time Charter Contracts in the Context of "Off-Hire" Clause

Abstract

COVID-19 epidemic, which has surrounded all over the world in a short time and caused severe measures to be taken after the World Health Organization declared it as a pandemia on March 11th, 2020, has also affected trade significantly. Given that most international trade is dependent on marine transportation, the maritime has been one of the sectors most severely impacted by the COVID-19 pandemic. In practice, the transportation and delivery of goods is often conducted based on time charter contracts. As set forth in Article 1131-1137 of the Turkish Commercial Code (TCC), a time charter contract ensures that "a dedicator undertakes the giving of commercial management of an equipped vessel for a certain period of time and for a fee to a charterer." Time charter parties include clauses, known as "off-hire" those set forth that the charterer is not required to pay for time the vessel can not be managed commercially because of reasons which can prevent the efficient working of the vessel.