London Arbitration 21/17

London Arbitration 21/17

“Following the conclusion of a Shelltime 4 charter for 12 months at USD70,000 per day, the freight market collapsed (tonnage scarcity ending with the announcement of the lifting of Iran sanctions). Charterers struggled to find profitable employment for the vessel, failed to pay hire and after 3 months sought 'cancellation' requesting Owners to find substitute employment. The Tribunal agreed that Owners rightfully accepted Charterers' conduct as a repudiatory breach terminating the Charter and awarded as damages the difference between Owners' earnings had the charter run for its full term, with bunkers paid for, and their actual sporadic earnings in that period on the spot market. The post-contract lifting of sanctions had no bearing on damages, and there was no 'accelerated receipt' of funds meriting any discount.”

Louise Glover
E. G. Arghyrakis & Co.
06th September 2017