Transfield Shipping Inc. v. Mercator Shipping Inc. (The “Achilleas”) – House of Lords, 09 Jul 2008

NYPE — LATE REDELIVERY — WHETHER SUBSEQUENT LOST PROFITS WERE FORSEEABLE — DAMAGES UNDER SUBSEQUENT FIXTURE — Charterer Award

Following the late redelivery of the Vessel from a time charter, Owners were forced to renegotiate their next time charter at a lower rate. Owners claimed $1.3 million in damages and won the dispute. On this appeal by Charterers, the Panel overturned the previous ruling with the simple question “Would an objective person have anticipated such a large loss of profits from the redelivery of a time chartered vessel made nine days late?” The award details the Panel’s ruling and settlement.