London Arbitration 4/04

Time charter - Charter period subsequently extended by addendum providing for hire to be calculated on basis of actual voyage results - Method of calculating voyage results - Whether parties concluded oral extensions subsequent to written addendum

The vessel was chartered on an amended NYPE form for a period of between five and seven months. The hire rate was $7,750 per day. The period of hire was extended twice on the telephone (without formal addenda being agreed) with rates of $7,400 and $6,500 per day being applicable. By July 1998 the market rate had fallen well below even those figures and the charterers gave notice of intended redelivery. The owners wished to continue with them as charterers in order to provide some stability in their trading. The charterers did not want to lose more money.