Isabella Shipowner SA v Shagang Shipping Co Ltd (The “Aquafaith”) – QBD (Com Ct)(Cooke J) – 26 April 2012

Charterparty – Repudiation of time charter by premature redelivery – Whether owners entitled to reject repudiation and affirm the charter – Whether exception to rule in White and Carter (Councils) Ltd v McGregor applied – Whether owners had no legitimate interest in insisting charter remained alive

The vessel Aquafaith was chartered on an amended NYPE form dated 19 September 2006 for a duration of 59–61 months. The charter also included a warranty that the vessel would not be re-delivered before the minimum period of 59 months which, in the event, was 10 November 2011. On 6 July 2011 the charterers stated that they would redeliver the vessel on dropping the last outward sea pilot after discharge in China under the then current voyage. It was common ground that that constituted an anticipatory repudiatory breach. The owners did not accept the repudiation and sought to affirm the charterparty. The vessel was, in the event, redelivered on 9 August 2011.