1.1 Introduction: the obligation to pay hire

A time charter is simply a contract by which the Owners of a vessel agree to provide the Charterers with the services of the Master and crew of that vessel for the performance of the voyages for the Charterers pursuant to their orders.2 The hire paid by the Charterer is paid in advance as it provides the funds from which the Owner draws to pay for the operating and other expenses of the vessel in conducting the operations ordered by the Charterers.