Chembulk Trading Inc v The Trading Corporation of Pakistan Ltd (The “Pirosmani”) - Before Lawrence J Jacobson, Milton G Nottingham and M E De Orchis (Chair) - 11 August 1995

Charterparty providing for reduction in freight rate in event of vessel loading other cargo but not providing any figure or formula for calculating such reduction - Whether provision unenforceable for uncertainty - Whether arbitration panel could imply appropriate term

The owners of the vessel Pirosmani brought arbitration proceedings to recover demurrage from the charterer. The charterer filed various defences and counterclaims arising inter alia out of the vessel’s deviation from the agreed geographical rotation, including a claim for reduction in freight. The most hotly disputed issue at arbitration was whether the charterer was entitled to a reduction of the freight rate because the vessel loaded other additional cargo.