Reed Smith recently acted for a mortgagee client who successfully purchased a vessel at a judicial auction, following default by a borrower under a loan facility and the vessel’s subsequent arrest.… Continue Reading
At a glance: the words “CLEAN ON BOARD” and “SHIPPED in apparent good order and condition” in a draft bill of lading presented to the Master for signature, were merely an invitation by the shippers to the Master to make those representations in accordance with his own assessment. Our previous briefing on this case can … Continue Reading
We have previously dedicated blog posts to so-called “No Oral Modification” or “NOM” clauses. You can find our previous post focusing on the Supreme Court judgment in MWB Business Exchange Centres v. Rock Advertising [2018] UKSC 24 here. The validity of contractual modifications is a recurring theme in commercial disputes. A recent English Court of … Continue Reading
In a late 2020 judgment (Aegean Baltic Bank SA v Renzlor Shipping Ltd and Ors [2020] EWHC 2851 (Comm)), the High Court provided important guidance on the position of a bank under security documents relating to a loan agreement, and its obligations when exercising its rights as assignee to the insurance policies over a vessel. … Continue Reading
Public today: an important judgment handed down by the English High Court this morning has re-opened the door to recovering damages in addition to demurrage for losses caused by exceeding laytime in cargo operations. In today’s 43 page judgment in K Line Pte Ltd vs Priminds Shipping (HK) Co Ltd (The Eternal Bliss) [2020] EWHC … Continue Reading
In Sea Master Shipping Inc v Arab Bank (Switzerland) Ltd & Yousef Freiha & Sons SA [2020] EWHC 2030, Owners, in a situation where Charterers were in insolvent liquidation and unable to meet their obligations under a voyage charter, sought to hold receivers liable for delay at the discharge port under the bill of lading. … Continue Reading
On appeal by the charterer, the High Court overturned the award of a London tribunal ordering the charterer to indemnify the disponent owner for the payment it had made to the owner of the vessel in settlement of the latter’s claim for a 50% contribution to the sum paid to cargo receivers for damage to … Continue Reading
Summary Charterers successfully appealed an arbitration award under section 69 Arbitration Act 1996 on the basis that Owners did not submit all supporting documents for a demurrage claim within the 90-day time bar under the charterparty. Mr Justice Robin Knowles ruled that as the calculation of demurrage was pro-rated under the charterparty where another parcel … Continue Reading
CITGO Asphalt Refining Co. et al. v. Frescati Shipping Co., Ltd. et al. On March 30, 2020, the U.S. Supreme Court held that “the plain language of the parties’ safe-berth clause establishes a warranty of safety.” The decision brings U.S. law into alignment with the long-standing position under English law, as established by Leeds Shipping … Continue Reading
There seem to be endless variations of the clauses in voyage charterparties requiring owners to provide copies of the relevant or supporting documentation with demurrage claims. We receive a surprising number of queries relating to what is required. In Amalie Essberger, a Commercial Court decision of 11 December 2019, the charter was on an amended … Continue Reading
Summary This case provides useful guidance on the application of rules of construction in relation to guarantees that display characteristics of both an “on-demand” guarantee and a “true guarantee,” and where obligations are undertaken by a non-bank entity. In such cases, there is no requirement for a narrow construction of the guarantor’s obligations. For information … Continue Reading
The Court of Appeal in Classic Maritime Inc. v Limbungan Makmur SDN BHD and Another [2019] EWCA Civ 1102 contrasted the circumstances in which an exceptions clause and a contract frustration clause would operate. The appeal concerned the charterer’s failure to ship five cargos of iron ore from Brazil to Malaysia in the period following … Continue Reading
Summary The “Atlantic Tonjer” [2019] EWHC 1213 (Comm) is thought to be the first reported judgment on SupplyTime 2017. The decision clarifies the meaning of clause 12(e) of the standard form, which requires Charterers to notify Owners by no later than the due date of an invoice, if they reasonably believe that the invoice is … Continue Reading
Summary The Court of Appeal’s decision in Ark Shipping Co LLC v. Silverburn Shipping (IOM) Ltd, “ARCTIC” [2019] EWCA Civ 1161, provides a clear statement of the principles of construction, and how they are applied in ascertaining whether a term is a condition or an innominate term. This decision provides guidance on the proper interpretation … Continue Reading
In Dera Commercial Estate v. Derya Inc [2018] EWHC 1673, the Commercial Court considered several issues of interest arising out of Article III Rule 6 of the Hague Rules ( “Article III Rule 6”), in the context of a bill of lading for the carriage of maize destined for Jordan which, on arrival, was not … Continue Reading
The law on ship arrest in England is well-entrenched. In essence, a party’s ability to arrest a ship in the UK occurs as of right. Accordingly, a shipowner will be unable to recover any compensation at all for wrongful arrest unless the arrest was obtained by mala fides (bad faith or malice) or crassa negligentia … Continue Reading
In Robert Bou-Simon v. BGC Brokers LP [2018] EWCA Civ 1525, the Court of Appeal considered deleted provisions and implied terms. Although in the context of an employment contract, the decision obviously has wider application. The Court held that the judge at first instance had not properly applied the legal test for the implication of contractual … Continue Reading
For an update on recent developments in the Shipping Industry, click here to listen to our recent webinar. During the webinar, we cover some of the key shipping cases in the last 6 months. We also take a look at electronic bills of lading including how they work, common benefits and pitfalls, as well as … Continue Reading
Navigators Insurance Company Limited v Atlasnavios-Navegacao LDA [2018] UKSC 26 In a decision handed down yesterday (22 May) the Supreme Court held that where a vessel was used by unknown third parties in an unsuccessful attempt to export cocaine from Venezuela (by strapping a parcel of drugs to the vessel underwater), leading to a detention … Continue Reading
The Court of Appeal case Khanty-Mansiysk Recoveries Limited v Forsters LLP [2018] EWCA Civ 89 considers the ambit of settlement agreement wording and the extent to which this can cover future claims. Background facts Forsters LLP (“Forsters”) were solicitors who had been instructed by Rupert Galliers-Pratt (“RGP”) to assist with preparatory work required to incorporate … Continue Reading
In the Aconcagua Bay [2018] EWHC 654, the Commercial Court Judge differentiated “always accessible” from “reachable on arrival”, holding that the term berth “always accessible” refers not only to entry, but also to the departure of the vessel from berth. On the facts of the case, a bridge and lock were damaged whilst the vessel … Continue Reading
A Rotterdam court has found Dutch reefer operator Seatrade and two of its directors criminally liable last week for illegally selling vessels for demolition in South Asian yards in breach of the EU Waste Shipment Regulation. The decision appears to be the first time an EU shipowner has been held criminally liable for the illegal … Continue Reading
On 2 February 2018 the Commercial Court allowed an appeal from a decision of the Arbitration Tribunal in Lukoil Asia Pacific Pte Ltd v Ocean Tankers Pte Ltd. The Judgment serves as a reminder to Owners to ensure that, if they have a claim for demurrage (no matter how it arises under the charter), as … Continue Reading
Trafigura Beheer Ltd v Renbrandt Ltd On 1 December the Commercial Court gave a judgment for the Claimant seller in this matter, which arose out of the sale of a cargo of gas oil in 2008. The facts The cargo was to be loaded by STS transfer from a mother vessel. The Quality clause in … Continue Reading
