P&O PRINCESS CRUISES INTERNATIONAL LTD V THE DEMISE CHARTERERS OF THE VESSEL “COLUMBUS”; P&O PRINCESS CRUISES INTERNATIONAL LTD V THE OWNERS AND/OR DEMISE CHARTERERS OF THE VESSEL “VASCO DA GAMA”; AND IN THE MATTER OF THE CLAIM FOR PORT DUES BY PORT OF TILBURY LONDON LTD

[2021] EWHC 113 (Admlty), Queen’s Bench Division, Admiralty Court, Mr Admiralty Registrar Davison, 26 January 2021

Contracts – Port charges – Ship manager entering into administration – Port notice of application of published tariffs – Harbours Act 1964 – Port of London Act 1968 – Port of Tilbury's General Trading Regulations 2005

Four cruise ships, including Columbus and Vasco da Gama, had been berthed at the Port of Tilbury after being laid up due to the Covid-19 pandemic. Favourable rates had been agreed by the port in view of the situation and the longstanding commercial relationship between the port and CMV, to the fleet of which the vessels belonged. Invoices were paid up until June 2020. On 19 June 2020, the vessels were detained by the Maritime and Coastguard Agency for non-payment of crew wages. On 20 July, the CMV empire collapsed and some of the CMV companies went into administration. This did not include the bareboat charterers of the two vessels. On the same day, the port emailed various contacts at CMV stating that the port rate from the following day would be the published tariff; a thirty-fold increase. The vessels were subsequently arrested and sold by the Admiralty Marshal, and an order was made that the port's fees were to be payable by the marshal as an expense of sale. This was the registrar's decision on the objection of interested parties against the port's charges. Those parties argued that since the bareboat charterers were not insolvent, the contract between those parties which incorporated the Port of Tilbury's Trading Regulations 2005 applied. There had been no variation and notice of the change in tariffs was inadequate. Accordingly the agreed rate continued to apply. The port maintained that it was entitled to charge the higher tariffs.