Right of withdrawal
C1. Commercial shipping, chartering, economics and financeDefinition
Owner's right to withdraw the vessel on charterer default.
The owner’s contractual right to withdraw the ship from a time charter if the charterer fails to pay hire punctually and in full. Most forms require an anti-technicality notice giving the charterer a short grace period to cure the default before withdrawal takes effect. Withdrawal is a drastic remedy: exercising it in a rising market lets the owner re-fix at higher rates, which is why hire-payment disputes are litigated so hard.