Archives: Hire

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The Global Santosh: The Supreme Court provides guidance on a charterer’s responsibility for its agents

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 … Continue Reading

Owners validly exercised right to withdraw for non-payment of hire and awarded discounted damages for repudiatory breach

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 … Continue Reading

Court of Appeal finds Sub-Charterers and Receivers to be Charterers’ “agents” for purposes of proviso to off-hire clause

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 … Continue Reading

Court of Appeal reverses first instance decision in “The Athena” on the applicability of the NYPE off-hire clause

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 of … Continue Reading

Court considers whether Owners had affirmed a charter by allowing discharge before withdrawal for non-payment of hire

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 Charterers’ … Continue Reading

Seizure by Pirates held to be an Off-Hire Event

In Osmium Shipping Corp v Cargill International SA [2012] EWHC 571 (Comm), the Commercial Court considered the grammatical structure and syntax of an off-hire clause in the context of whether seizure of the vessel by pirates constituted an off-hire event. The charterparty was on an amended NYPE 1946 form, and the off-hire clause in question … Continue Reading
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