499. SIB International SRL v Metallgesellschaft Corporation (the “Noel Bay”) [1989] 1 Lloyds Rep 361

Repudiation of voyage charterparty – measure of damages – loss occasioned by delay in giving voyage orders offset by profit earned on substitute voyage

The Facts

The vessel was voyage chartered for the carriage of a part cargo of clean unleaded gasoil from a port or ports on the west coast of Italy including the Italian Islands to a range of European ports.

The vessel completed her previous employment at Malta. Upon clearing outwards, charterers were obliged to give orders for a loading port which they failed to do. The vessel anchored off Malta and sailed for Augusta, Sicily, the next day.

On the third day after leaving Malta, charterers repudiated the charter which repudiation was accepted by the owners. Two days later the vessel was fixed to carry cargo from Tuapse, Black Sea to Banias, Syria. The substitute voyage took fourteen days.

It was agreed that the most advantageous option for the owners, having regard to the position of the vessel, was for her to have carried a cargo from Augusta to Laverna, South of France on a voyage lasting six days. The profit made on the notional voyage would have been approximately US$35,000.

Owners formulated their claim as follows:

A: profit on notional voyage: US$ 35,000

B: three days demurrage caused by delay in issuing voyage orders    US$27,000

C: cost of ballast voyage to Tuapse    US$17,000

D: credit for profit on actual voyage, calculated up to the end of notional voyage   US$12,000

Findings

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