Eleni Shipping Ltd v Transgrain Shipping BV [2019]

Eleni Shipping Ltd v Transgrain Shipping BV [2019] EWHC 910 — 10 April 2019 (Popplewell J)

“A Time charter clause provided that Charterers were allowed to transit the Gulf of Aden, against reimbursing EWR/K&R premia and crew bonus; also, that if the vessel 'threatened/kidnapped by reason of piracy payment of hire shall be suspended'. The High Court, confirming an arbitration award on this point, held that this clause rendered the Vessel off hire throughout the period starting with her seizure in the Arabian Sea on her laden passage (after transit of Suez and the Gulf of Aden), and continuing following her release (7 months later) during emergency repairs and supplies and until regaining a position equidistant between seizure and destination. The Court held that in a charter of this nature, the geographical extent of the Gulf of Aden is not strictly defined and the natural construction of the risk allocation provision is that loss of time as a consequence of the transit should be borne by Owners.”

Louise Glover
E. G. Arghyrakis & Co.
17th April 2019