Lloyd's Maritime and Commercial Law Quarterly
THE MARKET RULE AND LATE PERFORMANCE
Alexander Georgiou*
The Skyros
Bright J’s decision in Hapag-Lloyd AG v Skyros Maritime Corp (The Skyros and The Agios Minas)
1 has sparked a flurry of academic commentary.2 It should come as little surprise that the case has garnered so much attention—its beguilingly simple facts raise issues that go to the heart of the law of damages. This note argues that the right result was reached, although, with respect, perhaps not quite for the reasons which the judge gave.
Background
Hapag-Lloyd AG (the “Charterers”) entered into two charterparties. In breach of contract, both vessels were re-delivered late (although the Charterers continued to pay for each vessel at the contract rate during the period of overrun). The respective owners of the vessels (the “Owners”) brought claims against the Charterers seeking damages measured by the difference between the market rate and the contract rate for each vessel during the period of overrun (ie, as if the Owners had chartered the vessels to a third party during that period rather than receiving the contract rate from the Charterers).
* Prize Fellow, All Souls College, University of Oxford; Academic Fellow, National University of Singapore.
1. [2024] EWHC 3139 (Comm) (hereafter “The Skyros”).
2. This note adds to two earlier notes in this Quarterly alone: RY Chua, “The market rule strikes back” [2025] LMCLQ 240; M Hain, “Market measure as a floor” [2025] LMCLQ 410.
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