London Arbitration 18/04

Demurrage - Asbatankvoy form - Half-demurrage provision - Whether leak in cargo loading arm and resultant stoppage was a "breakdown" of machinery or equipment - Whether fact that stoppage occurred during laytime rather than during demurrage prevented charterers from taking advantage of provision

The vessel was chartered on the Asbatankvoy form. There were two issues before the tribunal, namely (1) whether a leak in a cargo loading arm and the resulting stoppage in loading whilst the cause of the leak was investigated amounted to a "breakdown" within the meaning of clause 8 of the charter, and (2) whether, if it did, the fact that it occurred during laytime rather than during demurrage time meant that the charterers could not benefit from the half-demurrage provision in the same clause.