London Arbitration 15/04

Suez Canal dues - Bulk carrier chartered on NYPE form - Charterers having to pay higher Canal dues by reason of fact that vessel was treated by classification society and therefore by Canal Authority as general cargo ship - Whether owners liable to reimburse charterers in respect of excess dues

The vessel, a bulk carrier, was chartered on the NYPE form for a trip which was described as "via intended Suez Canal". Although she was a bulk carrier, her classification society, because of their rules on midship sections, treated her and classified her as a general cargo ship. When she transited the Suez Canal, the Authority, apparently relying on her classification certificate, charged the charterers with dues on the scale applicable to general cargo ships, a scale that was higher than that applicable to bulk carriers. The charterers withheld the difference - US$23,817.81 - from hire. The owners brought the present arbitration proceedings to claim the sum withheld.