Opinion ID: 65391
Heading Depth: 3
Heading Rank: 2

Heading: Did the customer control the vessel?

Text: During the charter periods, the vessel and its crew were at the beck and call of the customer. The customer directed the movement of the vessel, cargo, and passengers. So long as these directives were safe and within the vessel's capabilities, the master and crew were required to fulfill them. [8] The customer could, at its own discretion, lay up the vessel at a safe port for all or any portion of the charter period, [9] or terminate the Time Charter at any time. [10] The customer also had the right to sublet, assign, or loan the vessel to other entities so long as they were not competitors of Tidewater. [11] Furthermore, the customer had the right to make structural alterations to the vessel and to install additional equipment as it saw fit. [12] While the rights to sublet and alter the vessel were both subject to Tidewater's prior consent, such consent was not to be unreasonably withheld. Thus under the Time Charter, the customer had control of the vessel in the most important sense of the word. While the crew retained control over the details of routine operation and maintenance of the vessel, this type of control is far less important than the type of control exercised by the customer. Therefore, this factor weighs in favor of the Time Charter being a lease.