London Arbitration 15/95

Vessel arrested very shortly after delivery under time-charter by claimants relying on “associated ship” jurisdiction - Whether existence of arrest order meant that ship was not lawfully delivered under time-charter - Nature of shipowners obligations in relation to getting vessel released from arrest so as to continue with her chartered service

The vessel (“Vessel A”) was chartered on the NYPE form on 17 May 1991. On 4 December 1992 the charterers entered into a sub-charter also on the NYPE form for a period of about three to about five months trading. The sub-charterers ordered Vessel A to load at a port in the named delivery range. On 24 December 1992 certain claimants (‘the claimants’) obtained an order for the arrest of Vessel A from the courts of the country where the vessel was to be delivered. The arrest order was made on the basis that the claimants had a claim against another company which owned a ship (Vessel B) which was an associated ship of Vessel A.