Clea Shipping Corporation v. Bulk Oil International Ltd. The Alaskan Trader - Q.B.D. (Com.Ct.) (Lloyd J.) - 29 July 1983

Owners’ remedies where time-charterers’ repudiatory breach not accepted as terminating charter

On 19 October 1979 the vessel Alaskan Trader was chartered by the disponent owners to the charterers for a period of 24 months 15 days more or less. She was an old vessel having been built in 1954. On 19 October 1980, after she had been on the chartered service for nearly a year she suffered a serious engine breakdown. It was clear that the repairs would take many months. The charterers indicated they had no further use for the vessel but the owners went ahead with the repairs at a cost of $800,000. Throughout the period of the repairs the vessel was, of course, off-hire. The repairs were completed on 7 April 1981, and the owners informed the charterers that the vessel was again at their disposal. The charterers declined to give the master any orders since they regarded the charter as having come to an end. The owners could have treated the charterers’ conduct as a repudiation of the charter but they did not do so. They anchored the vessel off Piraeus where she remained with a full crew on board ready to sail, but idle, until the time charter expired on 5 December. She was then sold for scrap.