TS LINES LTD V DELPHIS NV (THE “TS SINGAPORE”)

[2009] EWHC B4 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Burton, 25 February 2009

Charterparty (time) – Off-hire – Vessel damaged in port – Proceeded not to destination but to designated other ports for discharge and repair in compliance with class instructions – Whether off-hire while on original geographical route but for purposes of discharge and repair

An additional clause in a time charterparty on the NYPE form provided that if the vessel was at any point off-hire for more than 20 consecutive days, the charterers were entitled to redeliver when she was next cargo-free. The issue in this appeal of the arbitration award was whether as a matter of law the vessel had been off-hire for 20 days. The circumstances were that she had been damaged at Yokohama and Class had instructed her to go to Hong Kong instead of Shanghai where she was otherwise bound. At Hong Kong she was to discharge her entire cargo including cargo bound for Shanghai in order to proceed to Guangzhou for repairs. She was off-hire for a number of days at Yokohama and off-hire also at Hong Kong and thereafter. As a result, if she was off-hire on leaving Yokohama for Hong Kong, that would mean that she was off-hire for 20 consecutive days and charterers would be entitled to redeliver. Burton J held, allowing the appeal, that for the purpose of the voyage in question she was under the instructions of Class rather than charterers and that the geographical coincidence of the routes did not mean that she was back on hire. Charterers were entitled to redeliver. An off-hire clause was not meant to do justice and the fact that this interpretation of the clause would lead to a different result depending on whether the repair yard was located closer to or further away from the original destination was beside the point.