Greenwich Marine Inc. v. Federal Commerce & Navigation Co. Ltd. (The Mavro Vetranic) - 6 March 1985

Charterparty - Consequences of owners’ failure to nominate vessel within laycan period

The claimants entered into a contract of affreightment with the respondents for the carriage of 120/135,000 tons of wheat, 10% more or less in owners’ option. there were to be four monthly shipments of 35/40,000 tons. Four charterparties were executed between the respondents as owners and the claimants as charterers. The present dispute related to the third charterparty. which provided for the carriage of 35/40,000 tons of wheat, 10% more or less for a freight of $30 per ton. The laycan clause provided that time for loading should not commence before 26 February 1974, and that if the vessel was not ready for cargo at the loading port before 12 00 on 22 March 1974, the claimants had the option of cancelling the charterparty. Clause 29 provided inter alia : “20 days priors to ETA, the owners are to nominate performing vessels and narrow quantity to 5 per cent.”