486. Georgian Maritime Corp v Sealand Industries (Bermuda) Ltd (the “North Sea”) [1997] 2 Lloyds Rep 324; [1999] 1 Lloyds Rep 21

Charterers failing to nominate a loading place within port of delivery when vessel already within port, not entitled to cancel for missing of laycan

The Facts

The vessel was let on an Asbatime form for a one time charter trip with an intended itinerary Hong Kong / Kobe / Nagoya / Yokohama / Oakland / Long Beach.

The vessel, already in the port of Hong Kong, was to be placed at the disposal of the charterers at charterers’ berth, Hong Kong or dropping last outward pilot, in charterers’ option.

The laycan spread was about five days.

The vessel was to be delivered with specified quantities of HFO and MDO.

Charterers did not respond to requests enquiring where they wanted the vessel delivered and at the cut off time, because the vessel was neither at their berth nor dropping off the last outward pilot, charterers purported to cancel. They also relied on the fact that the vessel was not ready because the quantity of bunkers onboard at the cut off time was not as stipulated.

The vessel was bunkering at the time of the purported cancellation. Although the vessel had enough fuel to reach its first destination in Japan at the cut off time, bunkering was completed about four hours later.

Owners claimed damages for repudiation.

Findings

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