Archives: Time Charters

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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

Don’t trip up – a warning for owners

The recently decided case of SBT STAR BULK & TANKERS (GERMANY) GMBH & CO KG V COSMOTRADE SA (THE “WEHR TRAVE”) [2016] EWHC 583 (Comm) in the Queen’s Bench Division of the Commercial Court and before The Hon Sir Bernard Eder will, perhaps, come as a surprise. This was an appeal pursuant to section 69 … Continue Reading

Court considers nature of the breach and consequent measure of damages in “early redelivery” case

Maestro Bulk Ltd v Cosco Bulk Carrier Ltd (The “Great Creation”) [2014] EWHC 3978 (Comm) The vessel was chartered on an amended NYPE form for a minimum of four months and a maximum of five months, plus 15 days in Charterers’ option. Hire was at a rate of US$18,500/day gross. Clause 60 of the charterparty … Continue Reading

Tribunal rules on speed and performance claims under two consecutive time charterparties

London Arbitration 18/14 The vessel in question was the subject of two charters on the NYPE 46 form, for one time charter trip under each, with the second charter being in direct continuation of the first. Performance claims Clause 128(1) of each charter provided: “Owners not to be responsible if the vessel under the currency … 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

Tribunal rules on incorporation of arbitration agreement into a charterparty and Owners’ entitlement to demurrage

London Arbitration 14/14 The vessel in question was chartered by way of a fixture recap. Owners brought a claim for demurrage against Charterers. Charterers argued that the charter did not contain a valid arbitration agreement/clause, and that although they had agreed to pay freight, they had not agreed to be liable for demurrage. Incorporation of … Continue Reading

Ebola fears impact on vessels travelling from West Africa

Ebola continues to spread in West Africa with the latest reports indicating that over 2,630 people have died since the outbreak began. Yesterday, Malta turned away a vessel travelling from Guinea to Ukraine over fears that a crew member may have been infected with Ebola. Fears were also raised in New Orleans in connection with … Continue Reading

Ebola and its effect on shipping contracts

More than 1000 people have died in West Africa following the current outbreak of Ebola which began in March 2014. Guinea, Sierra Leone and Liberia are the worst affected countries but deaths have now also been reported in Nigeria, a major port for oil export. Tradewinds has reported that two bulker bookings for Guinea have … 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

Charterers not entitled to rely on “mechanical breakdown” demurrage exception where machinery was damaged by fire

ED&F Man Sugar Ltd v Unicargo Transportgesellschaft GmbH [2013] EWCA Civ 1449. The M/V “LADYTRAMP” was chartered on the Sugar Charter Party 1999 Form. Clause 28 of the charter provided for the following exceptions to laytime: “In the event that whilst at or off the loading place or discharging place the loading and/or discharging of … 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

Tribunal considers issues of cargo quantity, responsibility for broken cargo equipment, demurrage and the margin of redelivery bunkers allowed by the term “about”

London Arbitration 15/13 The Claimants chartered the Vessel to the Respondents on an amended NYPE form. The Respondents agreed a sub-voyage charter for the carriage of 50,000mt corn in bulk, 10% more or less in the Respondents’ option, from Brazil to Indonesia. In arbitration proceedings between the parties, four key issues were decided: Were the … Continue Reading

Court rules on liability for damage caused by breach of an unsafe port warranty

In Gard Marine & Energy Ltd v China National Chartering Co Ltd (The “Ocean Victory”) [2013] EWHC 2199 (Comm), the Claimant Underwriters claimed damages from the Defendant Time Charterers where the vessel was lost on departing Kashima port. Facts Charterers ordered the vessel, a Capesize bulk carrier, to discharge at Kashima. The vessel sought to … 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

Tribunal considers issues of estoppel where a Singapore court had already concluded that the Respondents were not in fact charterers of the subject vessel

London Arbitration 5/13 Disputes arose under a time charter. Owners commenced arbitration proceedings, contending that the Respondents, a company incorporated in St Vincent and the Grenadines, were the charterers. The Respondents denied this, alleging that another entity with the same name, incorporated in Hong Kong, had in fact chartered the vessel. The Claimants arrested two … Continue Reading

Disponent Owners denied indemnity from Charterers for US freight tax paid to Head Owners

London Arbitration 2/13 The vessel was the subject of a head and sub charter, both of which provided at clause 83 as follows: “All taxes and/or dues on cargo/freight and/or Charter hire to be for Charterers’ account, except tax and duties levied against the Owners in the country of domicile or ship’s flag.” Charterers ordered … Continue Reading

Tribunal interprets a NYPE addendum providing for early redelivery subject to payment by Charterers to Owners of an agreed sum

London Arbitration 1/13 The vessel was chartered on the NYPE form for nine months. Six months into the charter period, Charterers suggested that the vessel be redelivered on completion of its current voyage as they were having difficulty in fixing cargoes. The parties agreed an addendum stating that the vessel would be redelivered early “after … Continue Reading

Commercial Court holds that in order to recover under an amended off-hire clause, Charterers must show a net loss of time to the service

In Minerva Navigation Inc v Oceana Shipping AG (The “Athena”), the Commercial Court considered the nature of the loss of time which Charterers were required to prove in order to bring the vessel within the off-hire provisions of an amended NYPE 46 charterparty. Clause 15 of the charterparty provided as follows (with amendments from the … Continue Reading

Supplytime 89: Owners not required to give five banking days’ notice in order to exercise their right to suspend provision of the vessel’s services

In Greatship (India) Limited -v- Oceanografia SA de CV [2012] EWHC 3468 (Comm), the Commercial Court considered the interpretation of clause 10(e) of the BIMCO Supplytime 89 form. Specifically, the court considered the question of whether, in order for Owners to validly exercise their right to temporarily withdraw the vessel from the charterparty service, they … Continue Reading
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