London Arbitration 8/19

Charterparty– Owner ordering newbuilding and chartering out vessel for four years –Charterparty providing for vessel to be delivered to charterers at time ofdelivery to owner – Charterparty also containing provision that charterers were“obligated to take delivery” of vessel as long as owner was “obligated toaccept delivery” under building contract – Interpretation of provision

On 18 September 2008 the parties entered into a four-yeartime charter for a newbuilding. The charterers said that they were entitled tocancel the charter and/or that the owners were in repudiatory breach, whilstthe owners treated the charterers’ conduct in that regard as itselfrepudiatory.