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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.

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