Illegitimate voyage orders - SHELLTIME 4
Overview
Enquiry: The vessel was fixed for 18 months, 15 days more or less in charterers' option. Charterers were entitled to add off hire periods to the period of hire but opted not to utilise this option. Accordingly latest admissible redelivery of the vessel was 28 December 1990. On 7 December 1990 charterers instructed master to proceed to U.S. West Coast to load cargo destined for the Far East upon completion of which vessel would be redelivered to owners. Voyage calculations revealed that redelivery of the vessel would then be towards the end of January 1991 and, hence, since the period of 18 months plus 15 days ended 28 December 1990, owners considered charterers' voyage orders illegitimate and, accordingly, charterers should redeliver the vessel at the port where she would be expected to complete 8 December 1990. Alternatively, charterers would remunerate owners by way of increased rate of hire reflecting the market rate for the overlap period if the voyage should after all be performed. Charterers adopted the view that clause 19 (Final Voyage) applied. This clause reads in part (lines 194/197) as follows: "If at the time this charter would otherwise terminate in accordance with Clause 4 the vessel is on a ballast voyage to a port of redelivery or is upon a laden voyage, Charterers shall continue to have the use of the vessel at the same rate and conditions as stand herein for as long as necessary to complete such ballast voyage, or to complete such laden voyage and return to a port of redelivery as provided by this charter, as the case may be." BIMCO's advice was sought as to whether owners or charterers were right. Reply: We agree with owners that in so far as charterers have not utilised their option to add off hire periods to the period of hire then charterers are entitled to no further margin than the 15 days ...
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Posted:
02 June 2016
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