London Arbitration 19/15

TIME CHARTER – CHARTER PROVIDING FOR LAYCAN TO BE BACK-TO-BACK WITH SHIPBUILDING CONTRACT – WHETHER CHARTERER FULFILLED OBLIGATIONS TO OWNER WHEN CANCELLING CHARTER – Charterer Award

Charterer cancelled the time charter under the interpretation that its right to cancel was “back-to-back” with owner’s shipbuilding contract. Owner disagreed that “back-to back” referred to its right to cancel in the shipbuilding contract leaving owner to claim a repudiatory breach of contract. Charterer in turn sought a declaration that it was entitled to cancel while owner counterclaimed for damages.