Archives: Time Charters

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Reed Smith comments on “The Aquafaith”: Early Redelivery under Time Charters

An article by Edward Yang Liu, Legal Assistant at Reed Smith Richards Butler in Hong Kong, commenting on Isabella Shipowner SA v Shangang Shipping Co Ltd (The “Aquafaith”) (2012) EWHC 1077 (Comm) has been published in Shipping and Trade Law. The article considers the issues examined by the court, in particular whether Owners could refuse … Continue Reading

Application of the word “about” – When does under-consumption start?

The High Court recently handed down judgment in Hyundai Merchant Marine Co Ltd v Trafigura Beheer BV (The Gaz Energy No.2) [2012] EWHC 1686 (Comm). This decision will be of importance to both Owners and Charterers of time-chartered vessels where the word “about” is used in the charterparty in respect of the vessel’s consumption. The High … Continue Reading

Supreme Court considers Owners’ rights where a vessel is withdrawn for non-payment of hire with cargo on board

The judgment handed down recently by the Supreme Court in Petroleo Brasileiro SA v ENE Kos 1 Limited [2012] UKSC 17 considers the rights of the Owner of a timechartered ship after the vessel has been lawfully withdrawn for non-payment of hire, but where they have no right to claim damages for repudiatory breach of … Continue Reading

BIMCO launches Charterparty Guarantee

BIMCO has published a standard form Charterparty Guarantee, in respect of the guarantee of Charterers’ payment obligations and liabilities under a time charterparty. As well as payments due to Owners by Charterers, the document also incorporates a guarantee in respect of Charterers’ liabilities for other items including bunkers, port charges and stevedoring costs. Owners may … Continue Reading

BIMCO updates Radioactivity Clause

BIMCO has updated its Radioactivity Risk Clause for time charterparties. Several changes have been made to the clause, including a provision to protect owners against the consequences of unknowingly taking on board ballast water contaminated by radioactivity, and an amendment to the radioactivity survey provision. The latter now provides for a fairer allocation of costs … 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

High Court considers the meaning of the words “price actually paid” in clause 15 of SHELLTIME4

Clause 15 of SHELLTIME4 provides as follows: “Charterer shall accept and pay for all bunkers on board at the time of delivery, and Owners shall on redelivery (whether it occurs at the end of the charter or on the earlier termination of this charter) accept and pay for all bunkers remaining on board, at the … Continue Reading

Owners entitled to payment for hire and bunkers consumed for carrying and discharging cargo subsequent to termination of charter

Owners and Charterers had entered into a time charter on an amended Baltime 1939 form. Owners treated Charterers’ failure to pay hire as repudiatory conduct, which was accepted as bringing the charter to an end. At the time when the charter was terminated, the vessel had a full cargo on board. The vessel proceeded to … Continue Reading
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