Lloyd's Maritime Law Newsletter
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Time charter - Redelivery - Outward pilot dropped but no sailing clearance
The vessel had discharged cargo on completion of her final voyage under a time charter. The charterparty provided that redelivery
was to take place on dropping outward pilot. The charterers maintained they had a claim for the refund of certain hire. They
arranged for the vessel to be taken out to the anchorage where the pilot was dropped. The charterers arranged for her sailing
clearance to be withheld and for the Naval authorities to prevent her sailing for two days. No legal arrest of the ship was
effected. During this two-day period the charterers insisted that the owners first refund the relevant hire. Ultimately, agreement
was reached whereby the owners made payment to the charterers of a certain amount and set up an escrow deposit for another
amount. Then the ship was released.