London Arbitration 24/17 (2017) 986 LMLN 2

London Arbitration 24/17 (2017) 986 LMLN 2

“A newbuild vessel was bareboat chartered on the Barecon 2001 form (with addenda, including an option to purchase) for a period of 10 years. By a ship management agreement (`SMA') of the same date on the Shipman 2009 form, charterers engaged owners' management services for the vessel. Charterers, as they were entitled to do without cause, terminated the SMA on notice. The c/p contained no equivalent express termination provision. Despite accepting that c/p and SMA were a `package deal' and that hire, management fees and option purchase price were related, the Tribunal declined to grant owners a declaration that the c/p contained an implied term that it was co-terminous with the SMA. Such a term was not needed to give effect to the deal, nor was it necessary either to make the arrangements work or as a matter of commercial common sense.”

Louise Glover
E. G. Arghyrakis & Co.
27th September 2017