London Arbitration 11/11

Charterparty – Bunkers on delivery – Owners and former sub-charterers entering into new charter after premature termination of original head charter – Whether charterers obliged to pay for bunkers on delivery

The vessel was time chartered by her registered owners (“the owners”) to C1, who in turn sub-chartered her to C2, who in turn sub-sub-chartered her to C3 (“the charterers”) for a trip. While the vessel was waiting to load cargo the owners cancelled the head charter and withdrew the ship from their service. C1 took a similar position with C2 who, the same day, took the position vis-a-vis the charterers that the sub-sub-charter been terminated automatically. The charterers accepted that as a repudiation of the sub-sub-charter.