Bunge SA v Pan Ocean Co Ltd (The Sagar Ratan) [2025] EWHC 193 (Admlty)

Covid-19, off-hire and the meaning of "Affected Area"

In this case, having adopted a purposive and commercially realistic construction of contractual terms, the High Court dismissed the owners' appeal against an arbitration award made in favour of the time charterer, in which the tribunal found that the ship was off-hire during a period of delay caused by the crew testing positive for Covid-19. This decision provides important guidance on the interpretation of the term "Affected Area" under the BIMCO Infectious or Contagious Diseases Clause, as well as other quarantine-related provisions in time charterparties.