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Construction – “losses, expenses, damages” held to include expense which owners would have incurred in any event

The Facts

Disponent owners chartered their vessel on the Synacomex 2000 form for a voyage from Constanza to Djibouti with a cargo of wheat.

Disponent owners had, in turn, chartered the vessel from the registered owners on a time charter trip intention via Constanza to Djibouti or Port Sudan.

The vessel was unable to discharge at Djibouti because there were no receivers for the cargo. The parties agreed to discharge at Ain Sukhna, an Egyptian port south of the Suez Cannel.

As part of the addendum the parties agreed as follows:

(v)         Owners and head owners to be held harmless and indemnified against all losses, expenses, damages, risk whatsoever and howsoever arising including but not limited to those which may arise from any third party including but not limited to Egyptian authorities’ rejection refusal or inability to accept delivery of the cargo or from the charterers failure to discharge cargo.”

A further addendum was agreed substituting Damietta, another Egyptian port, north of Suez, all other terms and conditions remaining.

In dispute was whether charterers were liable for the Suez crossing, insofar as the vessel had to be redelivered at Port Said, north of Suez in any event.


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Charter Party Casebook