London Arbitration 27/22

When the vessel, chartered on a NYPE form cp, arrived at loadport, her whole crew were tested because the third engineer had presented covid symptoms. In the end only the bosun tested positive so the port authorities ordered a 14-day quarantine. Owners claimed some US$ 275k balance of hire but charterers held the vessel off-hire from arrival at loadport to the end of quarantine. Owners relied on Clause 114 pursuant to which in the specific case of loss of time due to quarantine procedures to combat avian influenza, the vessel would not be off-hire. Charterers relied on the exclusion in the same clause, for which Owners would bear the loss of time and related costs if arising “as a direct consequence of the vessel’s or officers/crew’s history prior to delivery”. The Tribunal found that quarantine would have not been ordered had the bosun not tested positive, so it did not arise as a consequence of events prior to delivery. Owners’ claim thus succeeded.