Charterparty guarantee

Time charterparty – Guarantee – Repudiation – Damages

Meixian Song, LL.M (UCL), PhD Candidate, University of Southampton

Background

The claimant, Star Reefers Pool Inc, chartered two vessels, Almeda Star and Avelona Star by a time charterparty concluded in April (‘the April charterparty’) and one vessel, Cape Town Star, in July 2008 (‘the July charterparty’) to the charterer, Kalistad Ltd for a period of 36 months. All three vessels were chartered for the carriage of large quantities of fruit from South America to Russian and Mediterranean ports. Under both time charterparties, the defendant, JFC, which is domiciled in Russia, was named as guarantor for the charterer’s performance of the contract. Also, both charters included a clause providing that disputes arising thereunder were to be referred to arbitration in London and for English law to apply.