Charterparty

Effect of piracy

COSCO Bulk Carrier Co Ltd v Team-Up Owning Co Ltd (‘The Saldanha’) [2010] EWHC 1340 (Comm) 11 June 2010

The charterer appealed against a decision that under a time charterparty it was not entitled to put a vessel off-hire when it was detained by pirates. The vessel was seized by pirates who compelled the master to sail it a different route to that planned. It was not disputed that time was lost as a result of the seizure. The charterers refused to pay hire for the period between 22 February and 2 May contending, inter alia, that the vessel was off-hire under Clause 15 of the Charter Party in the NYPE form as amended. The owners claimed the hire plus the cost of bunkers, additional war risk premium and crew war risk bonuses. The claim was made under the terms of the charter alternatively as a claim for an indemnity against the consequences of following orders to take the Suez route. The charterers counter-claimed damages alleging unseaworthiness because the vessel and her crew had not been properly prepared to deal with an attack by pirates.