423. Portolana Compania Naviera Ltd v Vitol SA Inc. (the “Afrapearl”) [2004] 2 Lloyd’s Rep 304

Demurrage clause – “breakdown” defined

 The Facts

The vessel was chartered on the Asbatankvoy form to carry to fuel oil from the US Gulf to Dakar.

Clause 8 read as follows:

            “8.        DEMURRAGE

Charterer shall pay demurrage per running hour and pro rata or a part thereof at the rates specified … if, however, the delays occur and/or demurrage shall be incurred at ports of loading and/or discharge by reason of fire, explosion, storm, or by strike, lockout, stoppage or restraint of labour, or by a breakdown of machinery or equipment in or about the plant of the charterer, supplier, shipper or consignee of the cargo, such delays shall count as half lay time or, if on demurrage, the rate of demurrage shall be reduced by one-half of the amount …”

On discharge at Dakar via a sealine comprising of flexible hoses connected to an underwater pipeline delays were caused by the need to repair leaking hoses which had been badly maintained.

 Findings

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