Category: Current

London Arbitration 27/17

CARGO SHORTAGE - OWNER PROACTIVELY SETTLED WITH CHARTERER’S RECEIVER - CHARTERER INDEMNIFY OWNER - NON REVERSIBLE - DEMURRAGE After discharging, the receiver claimed a cargo shortage and detained the vessel.  The shipowner settled the receiver’s claim in order to allow the vessel to depart the disport and in turn claimed reimbursement from the charterer.  Owner also claimed demurrage incurred at the disport despite laytime being saved at load given that the laytime was non-reversible.  
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Gard Marine & Energy Ltd and Another v China National Chartering Co Ltd and Another (The “Ocean Victory”) – UKSC 35 – 10 May 2017

TIME CHARTER - SAFE PORT - CLAIM AGAINST DEMISE CHARTERERS - LIMITED LIABILITY When a ship sank upon departing a port in a storm, the court was tasked with answering 3 questions.  1) Was there a breach of the safe port warranty? 2) If so, did provisions for joint insurance preclude owner from the right to recover losses covered by hull insurers?  3) If there was a breach, are losses by a sub-charterer limited to the losses incurred by it’s owner to head owner’s insurance company.
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Fulton Shipping Inc of Panama v Globalia business Travel SAU (The “New Flamenco”) – Supreme Court

TIME CHARTER  – ANTICIPATORY BREACH – DAMAGES – VESSEL REDELIVERED EARLY – VALUE OF VESSEL SOLD AT REPUDIATION GREATER THAN VALUE OF VESSEL AT CONTRACTUAL DATE OF REDELIVERY Under a time charter, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim. This is an appeal of...
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Glencore International AG v. MSC Mediterranean Shipping Co SA – EWCA Civ 365, 24 May 2017

ERS – BILL OF LADING – CARGO DISCHARGE TO WRONG RECEIVER After 69 uneventful deliveries, the 70th delivery was misappropriated when delivering against an electronic release system (ERS) rather than in exchange for a B/L or Delivery Order. fter 69 deliveries, discharge of the 70th shipment saw 2 of 3 containers misappropriated.  Glencore claimed damages against MSC for breach of contract, bailment and conversion when MSC delivered the cargo without requiring the B/L or a Delivery Order in exchange for it.  The B/L provided, “If this is a negotiable (To Order/of) Bill of Lading, one original Bill of Lading, duly...
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London Arbitration 21/17

SHELLTIME 4 - EARLY REDELIVERY - RENUNCIATORY / REPUDIATORY BREACH - DAMAGES Charterer’s daily hire payments were delayed or missed.  Then, when Charterer told Owner via email that it would like to cancel the Charter Party, Owner accepted Charterer’s alleged repudiatory breach and claimed for damages.  Charterer disputed damages were due.
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