Hong Kong Arbitration 1/18

Contract of affreightment – Damages – Charterers failing to provide any cargoes within contract period – Owners claiming damages for breach – Assessment of “available market” rate

This arbitration arose out of a contract of affreightment dated 12 June 2014 (the COA) between the claimants (owners) and the respondents (charterers) in respect of shipments of coal in bulk, to be loaded at South Kalimantan, Indonesia, for carriage to Xiamen in the People’s Republic of China. The COA provided that there should be three shipments of 55,000 mt +/-10 per cent MOLOO, one in each calendar month between 1 October 2014 and 31 December 2014, at a freight rate of US$8.90 per mt.