Vitol SA v JE Energy Ltd [2022] EWHC 2494 – 07 October 2022 (Lionel Persey KC)

Vitol sold 30,000 mt fuel oil to JE, FOB Tema with laycan 23-24 December; further terms were envisaged, for example as to the L/C.  JE failed to nominate a vessel to arrive Tema within laycan but Vitol continued to demand performance (rather than cancel)  until on 1 February, JE declared the contract ‘null and void’ at which point Vitol treated JE as in repudiatory breach. JE argued that in context ‘laycan’ here simply indicated a loading period, which in the event was subsequently extended by agreement to 31 January.  The Court found that ‘laycan’ had its traditional meaning and any agreed extension related solely to L/C arrangements.  Vitol’s claim for market value (based on its own sales and statistics) of approximately USD3.3m was accepted.