Comment and analysis by Reed Smith lawyers on the latest developments in the shipping industry
Introduction
Under English law, charterers’ obligation to pay hire as it falls due is absolute but the right to withdraw a vessel in case of default in charterers’ obligation to pay does not arise automatically. An express term will therefore be required.
Continue Reading Hire and withdrawal
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.…
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…
Kuwait Rocks Co v AMN Bulkcarriers Inc (The Astra) [2013] EWHC 865 (Comm)
On 18 April 2013, Flaux J handed down his judgment in Kuwait Rocks Co v AMN Bulkcarriers Inc (The Astra). The judgment provides long-awaited clarification that clause 5 of the NYPE form (the obligation to pay hire) is a condition of…
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…
