Lloyd's Law Reporter
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 increasingly 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.