London Arbitration 13/10

Charterparty – Repudiation – Owners failing to provide Certificate of Financial Responsibility – Charterers paying initial instalment of hire and then rejecting vessel - Whether charterers in repudiatory breach – Measure of damages – Whether damages should be discounted for accelerated payment – Whether financial situation of owners relevant

The vessel was a newbuilding chartered by her disponent owners (“the owners”) to charterers (“the charterers”) under a charterparty dated 7 May 2008 (“the head charter”) for a minimum of 16 months to a maximum of 63 months. The charterers in turn sub-chartered her under a charterparty dated 11 July 2008 (“the sub-charter”) to sub-charterers for a period of a minimum 14 months, maximum 16 months. Disputes arose under both charters, which were referred to arbitration. The tribunal prepared one set of Reasons, many of the issues being common to both cases.