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Lloyd's Maritime Law Newsletter

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N.Y.P.E. Form - Change of destination/Indemnities etc.

Time charterers’ agents signed a bill of lading for cargo loaded showing as port of discharge “West Africa/Warri”. The charterers had a sub-voyage charter with B of which the owners knew nothing. The bill was negotiated to B and subsequently, unknown to the owners and purely for the commercial convenience of the charterers and of B, other agents of the charterers issued a second bill showing B as shippers and C as “notify party” and the discharge port as Warri. This bill contained a different charter-party incorporation clause and contained other terms differing from those in the first bill. After waiting three days at Warri, the ship was ordered by the charterers, purely for the commercial convenience of themselves and B, to Lagos. Although she went there, the owners refused to allow her to discharge, initially requiring the charterers to sign a standard form undertaking (as recommended by P. & I. Clubs) and to have this countersigned by a reputable bank. The charterers tendered an undertaking in that form but without counter guarantee. They then, through solicitors, offered a counter guarantee of an associated company which itself owned ships, although that company gave no confirmation of its willingness to sign. Subsequently the set of the first bill of lading was handed to the owners’ club with a letter from B confirming their lack of objection to discharge in Lagos. Solicitors then instructed for the owners said that an undertaking countersigned by the charterers’ associated company, plus confirmation from C that they held the second bill of lading and required the cargo at Lagos, would suffice. When those documents were provided the owners ordered the ship to discharge. The charterers claimed damages for off-hire resulting from the refusal to discharge.

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