WHITE ROSEBAY SHIPPING SA V HONG KONG CHAIN GLORY SHIPPING LTD (THE MV "FORTUNE PLUM")

[2013] EWHC 1355 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 23 May 2013

Charterparty (time) - Charterer evincing intention not to perform - Owner affirming charterparty - Owner then seeking to terminate

The claimants in the arbitration were White Rosebay Shipping SA, the owners of MV Fortune Plum, a Supermax bulk carrier, and the respondents in the arbitration were Hong Kong Chain Glory Shipping Ltd who had chartered the vessel from the owners for a period of 35/38 months pursuant to the terms of a charterparty on an amended New York Produce Exchange Form. Charterers' payment of hire became i ncreasingly irregular. Owners claimed that the late payments amounted to a renunciation of the charterparty and purported to terminate. An arbitral tribunal held that there had been a renunciation of the charterparty by the charterers but that the owners, before terminating the charterparty, had affirmed the charterparty. Accordingly owners were unable to claim damages, estimated at over US$4 million, from charterers. Owners appealed.