London Arbitration 10/98

Time charter - whether charterers liable for loss and damage incurred by owners in having to clean holds

The vessel was chartered on the NYPE form. The owners claimed for loss and damage suffered as a result of the vessel being redelivered with her holds uncleaned. The charterers had, at one time, wished to redeliver the vessel prior to the expiry of the minimum period of 9 months. However, they found a cargo of sulphur in bulk, but that was an excluded cargo under the charterparty. The owners submitted that the parties reached an agreement on 14 December 1995 which they termed the Variation Agreement. That agreement permitted the charterers to carry one cargo of sulphur provided that the vessel’s holds were properly limewashed prior to loading and the costs of all labour, materials and tools were to be for the charterers’ account.