Does a vessel arrested for a claim under a sale contract remain on hire?
Time charterer Cargill withheld hire from disponent owners NYK pursuant to a period off-hire clause in a time trip charter on amended NYPE terms. The vessel was delayed for a prolonged period at Port Harcourt in Nigeria, where she was to discharge cement: first, because the unloader at the discharge port owned by the buyer of the cargo was broken and the vessel was held at anchor and, subsequently, because the sellers of the cargo arrested the cargo and inadvertently the vessel in order to secure their substantial claim for demurrage under the sale contract arising from the period of delay at the discharge port. Transclear was the seller and IBG the buyer. Under the sale contract, IBG was responsible for discharging the cargo. Transclear was also a sub-charterer of the vessel pursuant to a voyage charter.
NYK brought a claim for payment of the hire which was withheld by Cargill for the period when the vessel was subject to the Arrest Order. Their claim was rejected by the majority of a panel of three arbitrators. NYK successfully appealed to the Commercial Court…
If you are registered and logged in to the site, click on the link below to read the rest of the Ince & Co briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ince & Co
News from The Lawyer
Briefings from Ince & Co
Claimants with contractual claims against a Korean ship operator can go through London courts.
A Dutch ship operating company, SBV, brought claims against a Chinese bank, BOC, for payment under two refund guarantees governed by English law.