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TRANSPORTSHIPPINGTRADE
Project Cargo shipments:tips from legal advisor
Natalia Myroshnychenko, Interlegal
Cancellation of shipment
Pre-shipment
CharterersCharterers
Gencon/Booking Note
OwnersOwners
• Charterers’ cancellation: Non-readiness of cargoFinancial problems of Cargo Buyers
Grounds for cancellation
• Owners’ cancellation: Vessel’s delay for laycanImpossibility to take another part cargo
Charterers:
We hope you understand charterer’s current situation and forgive us for causing trouble for this contract.
Notice of cancellation
•Grounds•Cancelling clause •Jurisdiction
Cancelling Party
Counterparty to Cancelling PartyImmediate short claim•Statement of contract breach •Declaration of damages•Grounds for recovery•Jurisdiction
Voyage
Late delivery
Charterer
?
Shipowner
Charterers’ positionOwners’ failure to prosecute the voyage with due dispatch
Breach of delivery term
Owners’ positionJustifiable deviation
English case law justifiable deviation – voyage charter• to effect repairs to the ship (see Kish v. Taylor [1912])• to avoid capture or confiscation (see the Teutonia [1872])• to save life or property (see Monarch v. Stamp [1880])• to load full cargo (see Wallems v. Muller [1972])
Registered Owners
Registered Owners
ChartererCharterer
Time Charter
Voyage Charter
Time Charterer
Time Charterer
• Agreed port rotation
• Fixed transit time
• ‘First out’ basis
• Penalties clause
DELIVERY TERMCLAUSE/AGREEMENT
Post - voyage
Dispute
“Arbitration in London, English law”
Arbitration in London without any reference to the number of arbitrators
No express mechanism for the appointment of the arbitrator
One arbitrator only
English Law, Arbitration in London, the reference tothree arbitrators in accordance with the LMAA Terms
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