Lloyd's Shipping & Trade Law

When do freight costs become payable? The MV Rena disaster is one of the most significant and worst maritime environmental disasters for New Zealand. On 5 October 2011 the cargo ship grounded on the Astrolabe Reef in the Bay of Plenty causing huge losses both environmentally and economically. The environmental clean-up cost alone was approximately NZ$47 million. Some two and a half years later there are still unresolved issues and losses resulting from Rena’s grounding.

Damages – Charterparty – Early redelivery of vessel permitting profitable sale – Whether credit should be given

Was it wilful? Was it misconduct? The recent Canadian Supreme Court Decision in Peracomo Inc and Others v TELUS Communications Co and Others (The Realice) restores order on the limitation issue: the Supreme Court reversed the Court of Appeal’s decision to break limitation on the basis that Mr Vallée had not had the requisite intent to cause the damage that resulted (“recklessly and with knowledge that such loss would probably result”).

Oil pollution – P&I Club – International Oil Pollution Convention Fund – Freezing injunction – Fund’s immunity from freezing injunction