Duke Petroleum Transport Corporation v Texaco Panama Inc (The “Rich Duchess”) - Before Petros M Beys, Jack Berg and Chas F Nisi (Chair) - 9 September 1996 (SMA Award No 3297)

Time charter allowing for similar vessel to be substituted at owner’s option - Appropriate Worldscale rate applicable on substitution

The vessel was chartered for a period of 7 years and 6 months, with charterer’s option to declare another 5 years. The charter contained a clause allowing owners the option during the period of the charter to substitute twice similar vessels. The mutually agreed method of arriving at the applicable rate covering the substituting vessels was covered in clause 66, which provided: