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E-raamat: Charterparties: Law, Practice and Emerging Legal Issues

Edited by (Institute of International Shipping and Trade Law, University of Swansea), Edited by (Institute of International Shipping and Trade Law, University of Wales, Swansea, UK)
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This book consists of edited versions of the papers delivered at the Institute of International Shipping and Trade Laws 12th International Colloquium at Swansea Law School in September 2016. Featuring a team of contributors at the top of their profession, both in practice and academia, these papers have been carefully co-ordinated so as to ensure to give the reader a first class insight into the issues surrounding charterparties.

The book is set out in three parts.

-Part I offers a detailed and critical analysis of issues of contemporary importance concerning time charters.

-Part 2 carries out a similar analysis with regard to voyage charterparties.



-Part 3 deliberates issues common to both type of charterparties.

Offering critical analysis of contemporary legal issues on charterparty contracts, this book considers recent legal and practical developments and is therefore essential reading for both professional and academic readers with an interest in charterparties.
Table of cases and arbitral decisions
xv
Table of legislation
xxvii
Foreword xxix
Preface xxxi
Biographies xxxiii
PART 1 ISSUES CONCERNING TIME CHARTERPARTIES
Chapter 1 `Interrupting the Lifeblood': The Owner's Remedies for Non-Payment Of Hire After Spar Shipping
3(30)
Simon Rainey
1.1 Introduction: the obligation to pay hire
3(1)
1.2 The nature and importance of hire
4(1)
1.3 The common problem: the facts in Spar Shipping
5(1)
1.4 The `temporary' remedies for non-payment
6(1)
1.4.1 Suspending the charter service
7(1)
1.4.2 Attaching the Charterer's receivables
7(1)
1.5 Termination for repudiation/renunciation
7(8)
1.5.1 Repudiation
7(2)
1.5.2 Renunciation
9(1)
1.5.3 Application of the principles to the different factual situations
10(2)
1.5.4 A proposed three-stage analysis for testing a potential renunciation by the time Charterer
12(1)
1.5.4.1 Stage (1): Intended benefit
13(1)
1.5.4.2 Stage (2): The foreshadowed level of future non- or mis-performance
14(1)
1.5.4.3 Stage (3): Does that prospective non-or mis-performance go to the root of the contract?
14(1)
1.6 The decision of the Court of Appeal in Spar Shipping
15(2)
1.7 Treating the hire obligation as a condition of the charterparty
17(13)
1.7.1 The case law before The Astra
17(2)
1.7.2 The Astra
19(2)
1.7.3 Spar Shipping
21(1)
1.7.4 The Astra (Flaux J) v Spar Shipping (Popplewell J)
21(2)
1.7.5 Other case law on the condition question
23(2)
1.7.6 The argument before the Court of Appeal in Spar Shipping
25(4)
1.7.7 The decision of the Court of Appeal in Spar Shipping
29(1)
1.8 Conclusions
30(3)
Chapter 2 Off-Hire Clauses-Recent Developments
33(14)
Jonathan Webb
Brian Perrott
2.1 Introduction
33(1)
2.2 Overview of basic principles
34(2)
2.2.1 Payment of hire and off-hire clauses
34(1)
2.2.2 General principles
34(1)
2.2.3 Off-hire v damages
35(1)
2.2.4 Types of off-hire clauses
35(1)
2.2.4.1 `Period' clauses
35(1)
2.2.4.2 `Net Loss of Time' clauses
35(1)
2.3 The Athena
36(3)
2.3.1 The facts
36(1)
2.3.2 The decision of the tribunal
37(1)
2.3.3 The decision of the High Court
38(1)
2.3.4 The decision of the Court of Appeal
38(1)
2.4 The Global Santosh
39(6)
2.4.1 The facts
39(1)
2.4.2 The tribunal's award
40(1)
2.4.3 The High Court's decision
40(1)
2.4.4 The Court of Appeal's decision
41(2)
2.4.5 The Supreme Court decision
43(2)
2.5 Concluding remarks
45(2)
Chapter 3 Of Terrorists, Pirates, Foul Weather and Other Perils to International Trade: The Commercial Allocation of Risk Under Time Charters, With Particular Reference To Issues of Maritime Security
47(12)
Nigel Cooper
3.1 Introduction
47(2)
3.1.1 What is a time charter?
47(2)
3.2 How does the nature of a time charter affect the allocation of commercial risk?
49(5)
3.3 The allocation of commercial risk in the context of maritime security
54(4)
3.4 Conclusion
58(1)
Chapter 4 Bunkers and Charterparties
59(8)
George Arghyrakis
4.1 Introduction
59(1)
4.2 Bunkers and time charters
60(4)
4.2.1 Bunkers and time charters: quantity
61(1)
4.2.2 Bunkers and time charters: property in the bunkers
62(1)
4.2.3 Bunkers and time charters: bunker quality
63(1)
4.2.4 Bunkers and time charters: BIMCO bunkering clause
64(1)
4.3 Bunkers and voyage charters
64(1)
4.4 Fraud
64(3)
Chapter 5 Enhancing Standardisation and Legal Certainty Through Standard Charterparty Contracts --- The Nype 2015 Experience
67(24)
Dr Theodora Nikaki
Baris Soyer
5.1 Introduction
67(1)
5.2 Reclassifying and redrawing the parties' obligations
68(13)
5.2.1 Owner's obligations prior to delivery
68(1)
5.2.2 Revamped speed and consumption warranty
69(1)
5.2.3 Punctual payment of hire
70(3)
5.2.4 Reforming the bunkers clause
73(6)
5.2.5 Charterers' obligation to redeliver the vessel
79(2)
5.3 Reallocation of risk
81(7)
5.3.1 Off-hire clause
81(2)
5.3.2 Absence of an interpellation clause
83(1)
5.3.3 Hull fouling
84(4)
5.4 Conclusions
88(3)
Chapter 6 Damages for Underlap In Time Charters: Three Subversive Suggestions
91(12)
Andrew Tettenborn
6.1 Damages for breach of a charter: the place of an `available market'
92(3)
6.2 The period over which damages are quantified
95(3)
6.3 Cancellation clauses and damages
98(4)
6.4 Conclusion
102(1)
Chapter 7 Cargo Liabilities Under the New York Produce Exchange Time Charter And the Inter-Club Agreement
103(36)
John Weale
7.1 Introduction
103(1)
7.2 Court Line v Canadian Transport
104(1)
7.3 `... and Responsibility ...'
105(2)
7.4 Supervision and unseaworthiness
107(2)
7.5 Unseaworthiness arising from bad stowage
109(4)
7.6 A question of causation
113(3)
7.7 The Inter-Club Agreement
116(1)
7.8 The 1996 revision of the Inter-Club Agreement
117(2)
7.9 The 2011 revision of ICA 1996
119(1)
7.10 ICA 1996/2011 as a term of the charter
120(2)
7.11 The construction of ICA 1996/2011 as a term of the charter
122(2)
7.12 The threshold issue: clause (4) of ICA 1996/2011
124(3)
7.13 Issues of causation and apportionment
127(2)
7.14 Conclusion
129(10)
Appendix 7A Apportionment of claims under ICA 1996/2011 131(2)
Appendix 7B Inter-Club New York Produce Exchange Agreement (1996) (as amended September 2011) 133(172)
PART 2 ISSUES CONCERNING VOYAGE CHARTERPARTIES
Chapter 8 How Much Flexibility Is There In A Voyage Charter? --- An Eclectic Cornucopia!
139(30)
Richard Williams
8.1 Introduction
139(1)
8.2 The right to re-nominate ports or berths
140(4)
8.3 Payment of freight
144(5)
8.3.1 When is freight earned?
145(1)
8.3.2 Advance freight
145(2)
8.3.3 The rule against set-off
147(1)
8.3.4 Cargo Retention (or ROB) Clauses
148(1)
8.4 Regulating the speed of the vessel
149(2)
8.5 Delaying the commencement of loading
151(1)
8.6 Claims for damages for detention
152(5)
8.6.1 When demurrage is more advantageous to owners than damages for detention
153(1)
8.6.2 When claims for damages for detention are advantageous to owners
154(1)
8.6.3 Charterers' failure to provide a berth that `is reachable on arrival' or `always accessible'
155(1)
8.6.3.1 `Reachable on arrival'
155(1)
8.6.3.2 `Always accessible'
156(1)
8.7 Blending and commingling cargoes
157(10)
8.7.1 Potential carrier's liability for physical problems for the mixed cargoes
159(1)
8.7.1.1 Do the Rules apply?
159(1)
8.7.1.2 Is there a breach of the Rules?
160(1)
8.7.1.2.1 Is there breach of the provisions of Article III Rule 2?
160(2)
8.7.1.2.2 Is there breach of the provisions of Article III Rule 1?
162(1)
8.7.1.2.3 Is the carrier entitled to limit liability?
163(1)
8.7.2 Carriage documentary difficulties
164(2)
8.7.3 Liability insurance
166(1)
8.8 Conclusion
167(2)
Chapter 9 A Continental Perspective On the Interpretation of Voyage Charterparties by Arbitrators: The Example of the Synacomex Charter
169(10)
Dr Olivier Cachard
9.1 Introduction
169(2)
9.2 Rules for the interpretation of C/P terms
171(3)
9.2.1 Rules for interpretation under the French Civil Code
171(1)
9.2.2 Standard terms and negotiation
172(1)
9.2.3 The legal definition of force majeure
173(1)
9.3 Cargo disputes
174(2)
9.3.1 Cargo wetting and unseaworthiness
174(1)
9.3.2 Stowage of the cargo
175(1)
9.3.3 Quantity and short delivery
176(1)
9.4 Disputes over laytime and demurrage
176(2)
9.4.1 Berthing and the commencement of laytime
176(1)
9.4.2 Force majeure and the course of laytime
177(1)
9.4.3 The course of laytime and weather
178(1)
9.5 Conclusion
178(1)
Chapter 10 Delay and Demurrage In Tanker Charters
179(32)
Simon Baughen
10.1 Running of laytime under ASBATANKVOY
180(5)
10.1.1 Giving of NOR
181(1)
10.1.2 The laytime exception in the final sentence
182(2)
10.1.3 Further laytime exceptions
184(1)
10.2 Demurrage under ASBATANKVOY
185(3)
10.3 Charterers' obligation to nominate a safe place or wharf reachable on the vessel's arrival
188(6)
10.3.1 Delay prior to the start of laytime
188(4)
10.3.1.1 `Always accessible'
192(1)
10.3.2 Breach of `reachable on arrival' clause and laytime exceptions
192(2)
10.4 Pumping warranties
194(6)
10.5 Demurrage time bars
200(6)
10.5.1 Supporting documents
200(4)
10.5.2 Presentation
204(1)
10.5.3 Increase in claim after expiry of the time limit
204(2)
10.5.4 Date from which interest starts to run
206(1)
10.6 Conclusion
206(5)
Appendix 10A ASDEM spreadsheet for calculating discharge rates
209(2)
Chapter 11 Damages for Repudiation of Voyage Charters: Lessons Learned From the Mtm Hong Kong
211(28)
Jason Robinson
11.1 Introduction
211(1)
11.2 The MTM Hong Kong
211(19)
11.2.1 The facts and the arbitrator's decision
211(3)
11.2.2 The Charterers' arguments on appeal
214(1)
11.2.2.1 The compensatory principle argument
214(1)
11.2.2.1.1 Nature of the compensatory principle
214(2)
11.2.2.1.2 The Smith v M'Guire measure
216(1)
11.2.2.1.3 The Charterers' argument
216(1)
11.2.2.1.4 Is the Smith v M'Guire measure now irrelevant?
217(5)
11.2.2.2 The argument from loss and mitigation
222(2)
11.2.2.3 The argument of `speculative losses'
224(2)
11.2.2.4 The remoteness argument
226(1)
11.2.2.4.1 Assumption of responsibility
226(4)
11.2.2.4.2 Implied term?
230(1)
11.3 Lessons learned
230(6)
11.3.1 Does the decision have far-reaching implications for general contract law?
231(1)
11.3.2 `Different kind of loss'
232(1)
11.3.3 Benefits from positioning
233(3)
11.4 Conclusion
236(3)
PART 3 ISSUES COMMON TO BOTH CHARTERPARTIES
Chapter 12 Who Is Responsible for Loading, Stowage and Discharging? Who Bears the Risk?
239(10)
Andrew Preston
12.1 Introduction
239(1)
12.2 Background
239(2)
12.3 The EEMS Solar
241(3)
12.3.1 Background
241(1)
12.3.2 Facts
242(1)
12.3.3 Decision
243(1)
12.3.4 Who was responsible for loading and stowage?
244(1)
12.4 The Sea Miror
244(3)
12.4.1 Facts
245(1)
12.4.2 Submissions
246(1)
12.4.3 Decision
246(1)
12.5 Who bears the risk? Conclusions
247(2)
Chapter 13 Clauses Paramount
249(36)
Yvonne Baatz
13.1 Introduction
249(1)
13.2 The international conventions which may apply mandatorily to bills of lading
250(2)
13.3 Application of the Hague Rules to bills of lading and the clause paramount
252(1)
13.4 Application of the Hague-Visby Rules to bills of lading and the clause paramount
253(13)
13.4.1 `Bill of lading or any similar document of title'
254(2)
13.4.2 Types of voyage
256(1)
13.4.3 Cargoes excluded
256(1)
13.4.4 Period of coverage of the rules
257(1)
13.4.5 Construction of the clause paramount
258(1)
13.4.5.1 Evolution of the clause paramount from Hague to Hague-Visby Rules
258(3)
13.4.5.2 `Apply compulsorily'
261(2)
13.4.5.3 The Hague Rules `as enacted'
263(2)
13.4.5.4 `Corresponding legislation'
265(1)
13.5 The clause paramount and charterparties
266(16)
13.5.1 Does a clause paramount in the charterparty incorporate the rules into the charterparty?
267(1)
13.5.2 If the clause paramount is incorporated into the charterparty, which set of rules applies to the charterparty?
268(4)
13.5.3 If the rules are incorporated by the clause paramount, what is their impact?
272(1)
13.5.3.1 The seaworthiness obligation
272(4)
13.5.3.2 The exceptions
276(3)
13.5.3.3 The time bar
279(3)
13.5 Conclusion
282(3)
Chapter 14 Charterparties and the Modern Law of Penalties
285(14)
Gerard McMeel
14.1 The traditional law on penalties
285(2)
14.2 The retreat from Dunlop
287(1)
14.3 The modern restatement of the penalty rule
288(3)
14.4 Voyage charters
291(2)
14.5 Time charters
293(3)
14.6 Bareboat charters
296(3)
Chapter 15 Contracts of Affreightment
299(6)
Paul Herring
15.1 Introduction
299(1)
15.2 Problem areas
300(4)
15.2.1 What defaults constitute a breach which enables the other side to terminate and claim damages?
300(1)
15.2.2 Force majeure clauses
301(1)
15.2.3 Assessment of damages
301(3)
15.3 Conclusion
304(1)
Appendix I NYPE 1993 305(14)
Appendix II NYPE 2015 319(34)
Appendix III SYNACOMEX 90 353(4)
Appendix IV SYNACOMEX 2000 357(6)
Appendix V BIMCO non-lien clause for time charterparties 363(4)
Appendix VI BIMCO Suite of bunkering clauses 367(4)
Index 371
Baris Soyer is Professor of Commercial and Maritime Law, and Director of the Institute of International Shipping and Trade Law at Swansea University, UK.



Andrew Tettenborn is Professor of Commercial Law at the Institute of International Shipping and Trade Law at Swansea University, UK.
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