Wollongong Coal Ltd v PCL (Shipping) Pte Ltd (The "Illawarra Fortune") [2020]

Supreme Court
Written By Louise Glover

Wollongong Coal Ltd v PCL (Shipping) Pte Ltd (The "Illawarra Fortune") [2020] NSWC 184 - 5 March 2020 (Stevenson J)

“Subcharterers Gujarat India failed to pay US$ 3.2M freight to Disponent Owners PCL, time charterers of the Vessel Illawarra Fortune. After taking assignment of Owners' rights under the b/Is, PCL tried to recover those sums from Shippers WCL. The bi…

“Subcharterers Gujarat India failed to pay US$ 3.2M freight to Disponent Owners PCL, time charterers of the Vessel Illawarra Fortune. After taking assignment of Owners' rights under the b/Is, PCL tried to recover those sums from Shippers WCL. The bills provided for "freight payable as per Charter Party", i.e. the voyage charter. However, following Wa's failure to pay part of freight costs, the b/Is were marked "Null and Void" and substituted by switch bills identifying New Alloys as shippers. The Court held that because of the novation WCL's liability under the b/Is was extinguished therefore neither Owners nor PCL as their assignee could recover the freight and costs related to the voyage.”

Antonino Cordopatri
E. G. Arghyrakis & Co.
17th June 2020

Louise Glover
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