Case Summaries
Port of Sheerness Ltd v Swire Shipping Pte Ltd [2025] EWHC 7 (Admlty)
Swire, charterers of the Vessel “Kiating” had contracted with the Port of Sheerness for discharge of the Vessel’s plywood cargo, which in the event, was found to have shifted on the voyage, requiring several more days discharging than estimated. As well as additional charges for stevedoring, shiftings and equipment (all paid by Swire) the Port claimed some GBP250,000 extra charges based on a contractual clause: “…where a vessel remains alongside…for a longer period than necessary for loading and discharging…a period toll will be charged for each 24 hour period…” namely £137.80 per day per linear metre of LOA. Dismissing the claim, the Court found that the clause was restricted to cases where a vessel failed to depart after operations. It also found that other powers of the Port to raise additional charges were inapplicable (as here) the Port had not actually incurred them; nor was a quantum meruit appropriate where the parties had stipulated the circumstances for additional charges.
Sea Consortium Pte Ltd (t/a X-Press Feeders) & Ors v Bengal Tiger Line Pte Ltd & Ors [2024] EWHC 3174 (Admlty) (12 December 2024)
Disputes arose following the fire and subsequent sinking of the container vessel “X-press Pearl”. The Vessel was subject to various contractual arrangements at the time of the sinking including a bareboat and a time-charter. Time charterers had made further contractual arrangements including (i) a transport services agreement with Maersk (ii) a slot contract with BTL and (iii) a connecting carrier agreement with MSC. Time charterers had constituted a limitation fund under the 1976 Convention. Maersk, BTL and MSC sought, and the Court granted, a declaration that they too were entitled to limit liability under the Convention, as each was a ‘shipowner’ within Article 1(2) of the Convention.
Hapag-Lloyd AG v Skyros Maritime Corporation & Anor [2024] EWHC 3139 (Comm) (13 December 2024)
Time Charterers redelivered 2 Vessels some days late. Some months earlier, Owners had entered MOAs for the sale of both Vessels. Arbitrators determined a preliminary issue on the assumptions that (i) the T/Crates had risen substantially since conclusion of the fixtures and (ii) Ownerswould not have re-let after timeous redeliveries but simply delivered to Buyers. The Tribunal found in these circumstances that Owners were entitled to “substantial damages, compensation or other monetary relief”. On appeal, the Court disagreed; in the normal course damages would compensate for loss of opportunity to take advantage of the market rate, but here Owners lost no such opportunity because of the MOAs, so only nominal damages were appropriate.
London Arbitration 14/24 (2024) 1173 LMLN 3
Owners claimed some USD4.9m from Charterers in respect of unpaid hire, bunkers and expenses. Charterers (without any specifics) contended that Owners had issued unauthorised B/Ls, had failed (by discharging the carg0) to enforce Charterers’ lien for unpaid freight (having, they suggested, received payment direct from sub-charterers) and sought USD3.6m damages. Responding to Owners’ application for a partial final award, the Tribunal was only willing to award the difference of USD1.3m, on the basis that if Charterers’ claim were made out, Owners would have deprived them of the use of the Vessel by not retaining the cargo on board.
O v C [2024] EWHC 2838 (Comm) - KBD
Immediately after shipment on board O’s Vessel of a cargo of naptha, Charterers (‘C’) became subject to US sanctions. O purportedly terminated the C/P and in Arbitration sought an order for sale of the cargo, with the proceeds payable to a blocked US a/c in accordance with a US license. C opposes the sale and claims damages for conversion of its cargo, O (it says) being outside the reach of US sanctions. C contends that proceeds of sale should be paid into the English Court in support of the arbitration. The Court agreed that given the underlying arbitration, payment to Court was the appropriate option, outweighing O’s concerns about US prosecution, which the Court assessed as very low.
Fimbank Plc (Appellant) v KCH Shipping Co Ltd (Respondent) [2024] UKSC 38
The Supreme Court held that the time bar in Article III Rule 6 of the Hague and Hague Visby Rules applies to claims for misdelivery after discharge and other breaches occurring post-discharge but before delivery. Rejecting arguments limiting the time bar to the “period of responsibility” (loading to discharge), Lord Hamblen confirmed its broader scope, including pre-loading breaches linked to specific goods. This decision resolves a longstanding legal dispute, clarifying the Rules’ application to breaches beyond the traditional “period of responsibility”.