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Lloyd's Maritime Law Newsletter

London Arbitration 8/26

Voyage charter - Gencon 1994 form - Loading ammonium nitrate in Sea of Azov - Russian authorities refusing permission to proceed into Kerch Strait - Charterers ordering the vessel to return to load port for discharge - Owners claiming damages for detention and additional expenses - War Risks ("Voywar 1993") clause - Whether charterers in breach by loading a dangerous cargo, nominating an unsafe port, failing to prepare cargo documentation required to enable the vessel to pass the Strait, failing to take action to obtain permission, and failing promptly to nominate an alternative safe port - Whether the authorities' action was arbitrary and unforeseeable and frustrated the charter.

The subject vessel was chartered by the claimant owners to the respondent charterers for the carriage of a cargo of ammonium nitrate in bags from an Azov Sea port to a Black Sea port. The charterparty was evidenced by a fixture recap which incorporated the terms of a clean Gencon 1994 Form charter. The fixture provided for any disputes to be referred to arbitration in London. Disputes arose and the parties appointed Full Members of the LMAA.

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