Shipping - Recent Caselaw

Transpetrol Maritime Services Ltd v SJB (Marine Energy) BV (The Rowan) [2012] EWCA Civ 198

Voyage Charter – RECAP differs from wording of Vitol’s Oil companies approval clause – Owners liabillity for breach …more »

Hyundai Merchant Marine Company Ltd v Trafigura Beheer BV [2011] EWHC 3108 (Comm) (29 November 2011)

Charterparty Time – Speed warranty – Shelltime 3 – All weather warranty – Weather conditions up to a maximum of Force 4 on the Beaufort Scale.  …more »

Sideridraulic Systems SpA and Anor v BBC Chartering & Logistic GmbH & Co KG [2011] EWHC 3106 (Comm)

Carriage of goods by sea – HVR – Deck cargo – Whether master’s remark "ALL CARGO LOADED ON DECK" assigns cargo as deck cargo.  …more »

ED & F Man Sugar Ltd v Belmont Shipping Ltd [2011] EWHC 2992 (Comm)

Arbitration – Section 33 of the Arbitration Act 1996 – Whether failure of the tribunal to alert the party to an argument that it could have made a more favourable concession was a serious irregularity which caused the charterers substantial injustice.  …more »

National Shipping Company of Saudi Arabia v BP Oil Supply Company [2011] EWCA Civ 1127

Shipping – Laytime and Demurrage – BPVoy4 – claim was wrongly drawn up – Result of misdescribing or mislabelling of otherwise valid demurrage claim. …more »

Transpetrol Maritime Services Ltd. v SJB (Marine Energy) BV [2011] EWHC 3374 (Comm)

Vitol’s Oil companies approval clause – Tbook (To the best of owner knowledge) – Demurrage – Owners’ liabillity. …more »

Glory Wealth Shipping Pte Ltd. v Korea Line Corporation [2011] EWHC 1819 (Comm)

Time charter on an amended NYPE form for a minimum of 36 months - Earlier redelivery which owners accepted as a repudiatory breach - no available market for a period charter of a duration that corresponded to the balance of the charterparty - Measure of damages. …more »

TTMI SARL v Statoil ASA [2011] EWHC 1150 (Comm)

Voyage charterparty – Shellvoy5 – Arbitration Clause – Mistake in recording the identity of the chartered vessel’s time chartering owner – Whether contract was formed between the parties …more »

Dolphin Tanker Srl v Westport Petroleum Inc [2010] EWHC 2617 (Comm)

Shipping – Time Charterparty – Amended Shelltime4 form – Meaning of an Oil Majors – Qualifying Rejection. …more »

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Voyage Charterparty. Approval Clause

Voyage Charterparty. Approval Clause
In Transpetrol Maritime Services Ltd v SJB (Marine Energy) BV (The Rowan) [2012] EWCA Civ 198, the owners appealed against decision of MackieHHJ in the High Court (Transpetrol Maritime Services Ltd v SJB (Marine Energy) BV [2011] EWHC 3374) who held that they were in breach of cl.18 of recap which is intended to be read together with Vitol Clause 18.

Lord Justice Longmore found it difficult to construe the recap clause and clause 18 of Vitol terms (see above) in a way it was done by the judge Mackie. He rejected charterers’ submission that to express the whole obligation of clause 18 in the recap and the printed Vitol terms, it would be sufficient to add TBOOK after the word "Charterparty"...

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Voyage Charterparty Laytime. Owners’ Fault.

In my opinion, this being a claim for demurrage in respect of the detention of the vessel … it does not lie in the mouth of the owners to say that the vessel was being detained by the charterers during the time that they, the owners, for their own convenience, were bunkering…
Per Bankes LJ in Ropner Shipping Co. Ltd. v Cleeves Western Valleys Anthracite Collieries Ltd.,(1927) 27 Ll.L.Rep. 317; at p.319

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Owners’ claim for laytime and/or demurrage is always subject to their compliance with an obligation to do nothing to prevent the vessel being available and at the disposal of the charterers for the purpose of completing the loading or discharging of the cargo.

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Safety, practical and legal aspects of handling cargoes with high H2S content.

With some degree of certainty, supported also by reports from the industry, it can be concluded that liabilities which flow for delays and other consequences of high (or higher than permitted) H2S content in cargo tanks on arrival at load port would completely rest on the shipowner. On the other hand, at discharge port, all such liabilities would be for the charterers account. It will include ...

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Law & Sea

For our distant ancestors sea was not only a vast space of water, dangerous and mysterious, but it was also cultural and important trade link between kingdoms and nations, commercial cities and small towns. Sea trade in its turn, to prosper and grow, had to develop a set of commonly understood and clear rules, which formed the lex maritima - "the law for merchants on sea."

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Voyage Charterparty. Charterer’s Duties: Obligation to provide the goods for loading.

"Is not the freighter,"says Lord Ellenborough in Barker v Hodgson (1814) 3 M. & S. 267, "the adventurer who chalks out the voyage, and is to furnish, at all events, the subject-matter out of which the freight is to accrue." And on this principle it was held in that case, and has been held in several others, that there is an absolute contract on his part to furnish a cargo, and that he is bound to pay damages if it becomes impracticable to do so; though it would be otherwise if it became illegal to do so.
Postlethwaite v Freeland (1880) 5 App Cas 599 at 619 per Lord Blackburn

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Voyage Charterparty. Charterer’s Duties: Obligation to discharge the goods

Strict obligation to provide means for discharging cargo imposed on the charterer at discharge port. As Lord Selborne LC stated in Postlethwaite v Freeland (1880) 5 App Cas 599 at p. 608:

There is no doubt that the duty of providing, and making proper use of, sufficient means for the discharge of cargo, when a ship which has been chartered arrives at its destination and is ready to discharge, lies (generally) upon the charterer. If, by the terms of the charterparty, he has agreed to discharge it within a fixed period of time, that is an absolute and unconditional engagement, for the non-performance of which he is answerable, whatever may be the nature of the impediments which prevent him from performing it, and which cause the ship to be detained in his service beyond the time stipulated. 

 

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Safe Port. Obligation to exercise due diligence

In some standard charterparty forms safe port warranty has been substituted by an obligation to exercise due diligence to ensure that the vessel is only employed between safe ports. Concept of due diligence significantly qualifies strict obligation of the charterer to send the vessel to safe port. It was suggested that this protection is particularly likely to arise in cases where a port is conditionally safe as result of partial and temporary failure of port safety system, such for example as The Dagmar [1968] 2 Lloyd’s Rep 563 (failure to provide the master with the weather broadcast), The Khian Sea [1979] 1 Lloyd’s Rep 545 (inadequate weather forecasting system...

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