S.M.A. Award No. 1370

Scrap voyage charter-party - Gencon form - Freight payable 90% prepaid discountless and non-returnable, etc. - Balance 10% on completion of discharge - Vessel lost - Owners claimed balance of freight seven years after loss - Charterers’ defence (a) by specific charter-party provisons, (b) by laches.

- A charter-party in 1969 was agreed for full cargo scrap United States/Japan. The vessel loaded in January, 1970, and was lost at sea in February, 1970. The charterers paid 90% of the freight per charter-party and 1971 cargo receivers sued in the U.S. Court to recover the cargo loss. The Court decision in 1975 was in favour of the owners. Prior to the commencement of the suit, the owners claimed against the receivers for the balance of the freight, stating it had never been received. In 1976 the receivers notified the owners that “full freight charges” had been paid to the charterers. In March, 1977, the owners demanded arbitration from the charterers for the unpaid portion of freight.