Tradigrain SA and ors v King Diamond Shipping SA (The ‘Spiros C’) - QBD (Com Ct)(Colman J) - 27 April 1999

Owners exercising lien on sub-freights - Whether shippers’ obligation to pay freight had been discharged - Whether shippers under implied duty to effect discharge of cargo within reasonable time

The vessel Spiros C had been time-chartered by the defendant owners to Mercator Marine on the NYPE form and sub-chartered to Tradigrain Shipping for the carriage of a cargo of Hungarian milling wheat from Constanza to Morocco. The bills of lading were owners’ bills and were not properly issued until 13 March 1998. Mercator then got into financial difficulties and allegedly defaulted in the payment of hire. The owners then attempted to intercept the freight by giving notice to the claimant shippers. The issue was whether the owners were entitled to claim payment of freight from the shippers under the bill of lading contract.