TRAFIGURA MARITIME LOGISTICS PTE LTD V CLEARLAKE SHIPPING PTE LTD

[2020] EWHC 726 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Henshaw, 26 March 2020

Injunction – Chartering indemnity – Voyage charterer ordered to provide security for the release of arrested vessel

The claimant was the disponent owner and the defendant the voyage charterer under a charterparty on an amended Shellvoy6 form. The charterparty had been concluded on 21 August 2019 and novated by an addendum to the defendant on 2 December 2019. The claimant time charterer sought an urgent mandatory injunction compelling the defendant voyage charterer to provide security to enable the release of the MT Miracle Hope, which on 12 March 2020 had been arrested in Singapore by the purported lawful holder of the bills of lading for cargo on board. The bills of lading holder, a bank, had demanded security for release from arrest from the vessel owner, which in turn had sought security from the time charterer leading to these proceedings. In summary, the claimant alleged that the defendant was contractually obliged to provide the security sought but had so far failed to do so. The defendant submitted: (i) that it was not the right party; (ii) that the terms of the indemnity clause had not been complied with because the owner’s club indemnity wording had not been provided to the charterer before the fixture was concluded, as required by clause 33(6) of the charterparty which specified “LOI as per Owners' P&I Club wording to be submitted to Charterers before lifting the ‘subs’”; (iii) that no separate letter of indemnity was provided to the claimant as required by clause 33(6), therefore no indemnity had in fact arisen; and (iv) the circumstances did not justify the extreme urgency with which the application had been brought before the court.