Substitute. (E.g. “mv/ss `. . . . . .’ or substitute”.)
Such a term in a charterparty entitles the owners to replace the original vessel by another ship for the fulfilment of the charter. Obviously, the substituting vessel must have a cargo capacity enabling her to meet the contractual commitments made and must be in other respects similar to the vessel she replaces, including her class for insurance and, of course, must be in a position to load within the charterparty dates.
If the charterparty refers to a named vessel omitting “or substitute”, shipowners cannot replace her by another vessel without the charterer’s consent.
It is worth noting that the stipulation “or substitute” places an obligation on the owners, until they have made their declaration, o£ providing a vessel to fulfil the charterparty, even should the vessel which they are considering to use be incapacitated or unavailable.