AI Giorgis Oil Trading Ltd v AG Shipping & Energy PTE Ltd RE: M.T. Marquessa [2021] EWHC 2319 – 17 August 2021 (The Honourable Henshaw J)

The Defendant Charterers consistently failed to pay or pay on time. The Claimant Owners, relying on the amended Shelltime 4 c/p, suspended performance, whilst claiming hire. When the 6th hire went unpaid, leaving some USD3.7m outstanding, Owners accepted Charterers’ conduct as a repudiation or renunciation, and elected to terminate the c/p and claim damages. The Court dismissed Charterers’ claim for wrongful termination, and held Owners were within their rights to suspend performance having regard purely to their own interests. Charterers’ consistent failure to pay on time had deprived Owners of “substantially the whole benefit” of the c/p and provided Owners with reasonable grounds for believing they would not receive them in the future. Charterers were held to be in both repudiatory and renunciatory breach, and summary judgment was granted.