London Arbitration 1/90

Owners claimed laytime began at 22:30 on 4 August after NOR was tendered and accepted, but charterers argued the NOR was invalid due to the vessel lacking a U.S. Coast Guard certificate of compliance (COC) at the time. The certificate was issued on 5 August; laytime was held to start at 22:00 on 5 August.

Under an amended Asbatankvoy charter, owners tendered NOR at 16:30 on 4 August despite lacking the required U.S. certificate of compliance. The NOR was accepted by charterers, who were unaware of the missing certificate. The certificate was only issued at 16:00 on 5 August. The lighter arrived on 6 August at 11:00.

Charterers contended that the initial NOR was a nullity, and laytime could not begin until a valid NOR was served post-certification. Owners argued the vessel was physically and legally ready, that the acceptance estopped charterers from objecting, and that no time was lost as discharge began only after the certificate was issued.

The court held that the absence of the certificate meant the vessel was not legally ready; the statutory requirement was a condition precedent to a valid NOR. Charterers’ mistaken acceptance did not validate the NOR nor estop them from objecting, as there was no informed waiver. A new NOR should have been tendered on 5 August post-certification, but was not.

The NOR given on 4 August was deemed premature and ineffective. Laytime commenced at 22:00 on 5 August, six hours after the certificate was issued. Owners’ claim for demurrage was reduced accordingly.