Parbulk II A/S v Heritage Maritime Ltd SA (The “Mahakam”) – QBD (Com Ct)(Eder J) – 8 November 2011

Charterparty – Termination – Owners terminating bareboat charter for charterers’ failure to pay instalments of hire – Whether owners waived right to terminate by making subsequent demands for payment of hire – Whether charter validly terminated

On 11 December 2007 the parties entered into a bareboat charterparty of the vessel Mahakam for 60 months at a daily rate of US$38,500. Clause 38.3 of the charterparty provided that punctual payment of hire “shall be of essence”. The charterparty also provided: