Bunge SA v Kyla Shipping Co Ltd (The "Kyla") - QBD (Comm Ct) (Flaux J) [2012] EWHC 3522 (Comm) - 10 December 2012

Charterparty - Frustration - Vessel damaged in course of time-chartered service - Cost ofrepairs exceeding sound market value of vessel - Charter requiring owners toinsure vessel - Insured value exceeding cost of repairs - Whether charterfrustrated

On 6 February 2009 the vessel Kyla was chartered on an amended NYPE 1946 form for a period of 12 to 15 months in the charterers' option. Clause 1 of the charter provided that the owners should keep the vessel in a thoroughly efficient state in hull, and holds, machinery and equipment.