What happens if a vessel is not ready on time?

When a vessel is not ready on time, the shipowner has the right to cancel the charter party. This right typically arises from the specific terms laid out in the charter agreement, which usually stipulates that timely readiness is a crucial obligation of the shipowner. If the vessel fails to meet this obligation, the charterer can be left in a difficult position, potentially incurring significant losses due to delays and disruptions in their operations.

In such situations, the shipowner is generally required to indemnify the charterer for these losses. This indemnity reflects the principle that parties to a contract should bear the consequences of their inability to fulfill their contractual obligations. Therefore, the charterer's right to compensation arrives from the shipowner's failure to provide a vessel that is ready for service as agreed.

This scenario illustrates a legal framework designed to protect the interests of both parties involved while highlighting the importance of adhering to contractual timelines. It emphasizes that timely compliance is critical in maritime commerce, as delays can lead to considerable ripple effects throughout the supply chain.