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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

On-Hire Survey

Last updated: January 21, 2026
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An on-hire survey is an inspection carried out at the start of a lease or charter to record the condition of a vessel or container before it is put into use. The survey documents the physical state, cleanliness, and operational readiness at the exact handover point. This creates a clear baseline of responsibility. It helps avoid disputes later about damage or wear.

During the survey, inspectors check structural condition, equipment functionality, and visible defects. For containers, this may include doors, floors, seals, and markings; for vessels, it can cover hull condition, machinery status, and safety equipment. Findings are recorded in a formal report with photos where needed. Both parties rely on this report as an objective reference.

The On-Hire Survey supports fair liability management throughout the lease period. When paired with an off-hire survey at return, it allows an accurate comparison of the condition before and after use. This protects both owner and user, ensuring accountability and smoother settlement of any claims.

FAQ

Frequently Asked Questions about On-Hire Survey

Clear answers to the most common questions people have when learning about On-Hire Survey.

It establishes the condition at handover, helping prevent disputes over damage or maintenance responsibility later.

An independent surveyor or an authorized inspector agreed upon by the parties typically performs the inspection.

Findings are noted in the report; repairs may be requested or liability agreed upon before the lease begins.