Owners Found To Have Unreasonably Withheld Approval Of Charterers’ Proposed Discharge Vessels

In a previous post, we reported on the decision in Falkonera Shipping Co v Arcadia Energy Pte Ltd (The "Falkonera"), in which Owners were found to have unreasonably withheld their approval to discharge from the chartered VLCC to two other VLCCs by STS transfer. The key facts and charter clauses are set out in that previous post.

Owners' appeal of this decision has recently been dismissed by the Court of Appeal ([2014] EWCA Civ 713).

Charterers had the right under the charter to transfer cargo to any vessel, including a VLCC. VLCC-VLCC transfers were permitted under the charter terms, and Owners were taken to have accepted the risks inevitably attendant on...