The Tai Hunter: the complexities of vessel nomination

A v B (The “Tai Hunter”) [2021] EWHC 793 (Comm) revives the debate on the legal nature of the nomination of a vessel within the context of international commercial sales. Underlying the ratio of A v B is the distinction between the nomination of a vessel and the declaration of shipment in contracts concluded on shipment terms in cif and fob transactions respectively.

Depending on whether a contract is concluded on cif terms (with the seller obliged to cover cost, insurance and freight), or fob terms (free on board, with transport obligations on the buyer’s shoulders, and the seller having to ship the goods “free on board”), the nomination of the vessel assumes different legal implications. For the facts and application of the law, see also Liu, “Vessel nominations under fob sale contracts”, Lloyd’s Shipping & Trade Law, (2021) 21 LSTL 4 5.