NYK Bulkship (Atlantic) NV (Respondent) v Cargill International SA (Appellant) (“The Global Santosh”) [2016] UKSC 20 (overturning the Court of Appeal [2014] EWCA Civ 403)

The Supreme Court last week handed down an important decision concerning the issue of when a charterer will be held responsible for its agents under a charterparty.

Contractual position

NYK was the disponent owner of the m.v. Global Santosh (“the Vessel”). NYK time chartered the Vessel to Cargill on an Asbatime form, which is a variation of the NYPE 1946 form. Cargill sub-chartered the Vessel to Sigma Shipping Limited under a voyage charter. The Vessel carried a cargo of cement in bulk from Sweden to Nigeria under a sale contract between Transclear SA (“Transclear”) and IBG Investments Ltd (“IBG”). It is likely that Transclear was a further sub-charterer of the Vessel.Continue Reading The Global Santosh: The Supreme Court provides guidance on a charterer’s responsibility for its agents

London Arbitration 19/14

Two new buildings were let by Owners to Charterers on an amended NYPE form for a period of about 35 months up to 37 months. Hire was to be paid semi-monthly in advance. Clause 55 of the charter allowed Owners to withdraw for non-payment of hire after the expiry of three clear

Posted on behalf of Steven Avery.

In NYK Bulkship (Atlantic) NV v Cargill International SA (The Global Santosh) [2014] EWCA Civ 403 the Court of Appeal considered the true construction and application of a proviso to an off-hire clause dealing with the capture, seizure, detention or arrest of the vessel.

Background

Pursuant to a charterparty

The Court of Appeal has reversed the first instance decision in Minerva Navigation Inc v Oceana Shipping AG (The “Athena”).

Facts

The vessel was chartered on the NYPE 46 form. Clause 15 provided as follows (with amendments from the standard form clause underlined):

“… in the event of loss of time from … default

In White Rosebay Shipping SA v Hong Kong Chain Glory Shipping Ltd [2013] EWHC 1335 (Comm), Owners appealed against an arbitration decision stating that they were unable to claim damages from Charterers in respect of the latter’s renunciation of the charter. The Tribunal had found that by allowing the vessel to discharge cargo after