London Arbitration 18/10

Charterparty – Vessel arrested by receivers following cargo shortage and damage at discharge port – Owners making substantial payment to receivers to obtain vessel’s release – Extent of charterers’ liability for cargo claim – Whether charterers in breach of charterparty clause providing that receivers were to accept P&I Club letter if any cargo claims at discharge port – Whether owners entitled to damages for detention pending vessel’s arrest

The vessel was chartered on the Sugar Charter Party 1999 form for the carriage of “a full and complete cargo of 13,100 net metric tons minimum/maximum of sugar in loose 50 kg bags” from Santos to Tartous. A court-appointed surveyor at the discharge port reported that there were 3,521 bags of short-delivered or damaged cargo. The total of 3,521 bags comprised 632 sound bags remaining on board, 208 torn bags, 271 torn empty bags, 1,240 wet bags and 1,170 bags short-delivered.