Shipping: how do you calculate loss of earnings following a collision?

The case of Astipalaia v Hanjin Shenzhen [2014] EWHC 120 (Admlty) has revisited the existing case law on assessment of damages following a collision and provided further clarification as to the appropriate test to be applied.

On 26 March 2008, there was a collision between the fully laden VLCC tanker Astipalaia and the container ship Hanjin Shenzhen in the approaches to Singapore where Astipalaia was due to discharge. As a result of the collision, Astipalaia suffered damage to her hull, guard rails and mooring chock. Astipalaia was able to proceed into Singapore to discharge her cargo.

At the time of the collision, Astipalaia was trading in the VLCC spot market, which in early-mid 2008 was particularly buoyant and the vessel was acceptable throughout the industry to oil majors and other first-class charterers. However, Astipalaia was unfixed for her next employment at the time of the collision…

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