Don't Trip Up – A Warning For Owners

Co-authored by Chloe Rogers

The recently decided case of SBT STAR BULK & TANKERS (GERMANY) GMBH & CO KG V COSMOTRADE SA (THE "WEHR TRAVE") [2016] EWHC 583 (Comm) in the Queen's Bench Division of the Commercial Court and before The Hon Sir Bernard Eder will, perhaps, come as a surprise.

This was an appeal pursuant to section 69 of the Arbitration Act 1996 following an arbitration.

The question to be decided related to the interaction between the nature of a trip time charterparty for "one trip", and the language of the contract governing the range of load and discharge ports. The question before the arbitrators, and then before the court, was whether the charterparty permitted the Charterers to load another cargo having discharged all its originally loaded cargoes. Once the vessel was free of cargo, could the Charterers load again? Furthermore, was the intended load port within the range of permissible ports?

The relevant terms were as follows:

"ll. 13-15

'... That the said Owners agree to let, and the said Charterers agree to hire the said vessel, from the time of delivery, for one Time Charter trip via good and safe always afloat, always accessible port(s) and/or berths via Continent/Mediterranean/Black Sea/East Mediterranean to Red Sea/Persian Gulf/India, always via Gulf of Aden one Time Charter trip via via (sic) good and safe ports and/or berths via East Mediterranean/Black Sea to Red Sea/Persian Gulf/India/Far East always via Gulf of Aden, with steels and/or other lawful/harmless general cargo, suitable for carriage in a cellular container vessel as described. No bulk cargo is allowed. Duration about 40-45 days without guarantee minimum 40 days without guarantee within below mentioned trading limits.'

ll. 18-35 'Vessel to be placed at the disposal of the Charterers on passing Skaw, Denmark dropping outward pilot Algeciras at any time day or night, Saturdays, Sundays and Holidays included. Vessel on her delivery to be ready to receive any permissible cargo... in such lawful trades, between good safe port and/or good safe ports and good safe berth and/or good safe berths and good safe anchorage and/or good safe anchorages, always afloat, always within Institute Warranty Limits (See also Clause 38) as the Charterers or their Agents shall direct ...'

cl. 4

'That the Charterers shall pay for the use and hire of the said Vessel at the rate of U.S.$10,000.00– 8,200 per day, pro rata including overtime, basis redelivery Mumbai/Colombo range or...