The following paper was presented by Mr Cedric Barclay at the one-day seminar on charter-party disputes, organised by Lloyd’s of London Press, Ltd., and held on April 2 at the Great Eastern Hotel, London.

Under time charters the majority of disputes on speed and consumption deficiencies concern dry cargo vessels of small and medium size and generally of advancing years. Tanker charter-parties invariably include clauses which specify the adjustments to be made to hire, for any loss of speed or for increased consumption. The calculations are simple and are based on the difference between the actual and the estimated time for each voyage, allowance being made for weather conditions more severe than say Beaufort 5 or 6. Furthermore, most tankers are large vessels, with a relatively short life span. Mechanical deterioration is less advanced and they have generally some reserve of power. Their stay at terminals is very short. Fouling of the hull is less pronounced than with vessels delayed in port at the mercy of stevedores, or by the lack of local facilities.

I do not intend to comment on the legal aspects of the warranties given in charter-parties. My friend Mr Anthony Evans, Q.C., is far better informed in such matters and you will be listening to him soon. However, to understand the problems you must first be quoted the charter-party clauses which refer to speed and consumption.

The BALTIME form of charter-party reads:—

The same charter-party provides:—

and in Clause 13, it is also said:—