HBC Hamburg Bulk Carriers GmbH & Co KG v Huyton Inc
2014
COMMERCIAL COURT
United Kingdom
CORAM
- THE HONOURABLE MR. JUSTICE TEARE
Areas of Law
- Contract Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
An appeal case regarding an arbitration award under the Arbitration Act 1996, involving disponent owners who chartered a vessel that could not discharge at the initial port. The owners incurred additional expenses transiting the Suez Canal due to changes in discharge ports. The court overturned the tribunal's decision and held that the charterers were liable for these transit costs. The judgment emphasized principles of contract construction based on the wording and intent of agreements.
Judgment
Mr. Justice Teare :
This is an appeal from an arbitration award pursuant to section 69 of the Arbitration Act 1996. Permission to appeal was granted by Flaux J. The appeal raises a short question of construction of an addendum to a charterparty and concerns liability for the sum of USS$186,905.51, being the costs of transiting the Suez Canal.
On 23 October 2009 the Claimants, as disponent owners, chartered the vessel GLORY SANYE to the Respondents on the SYNACOMEX 2000 form for a voyage from Constanza to Djibouti with a cargo of wheat. The Claimants themselves had time chartered the vessel from the registered owners on the NYPE 1946 form for a time charter trip “intention via Constanza to Djibouti or Port Sudan”.
The vessel loaded a cargo of wheat at Constanza and arrived at Djibouti on 20 November 2009. However, the vessel was unable to discharge because there were no receivers for the cargo. The vessel remained off Djibouti for some three months. An agreement, addendum no.1, was reached between the disponent owners and charterers that the discharge port would be changed to Ain Sukhna, an Egyptian port south of the Suez Canal. The terms of addendum no.1 were as follows (the numbering has been added by me for ease of reference):
Addendum no.1 to C/P dated 23 October 2009 (including for avoidance of doubt the arbitration law and jurisdiction clause) MV “GLORY SANYE” :
(i) Without prejudice to all rights as previously reserved
(ii) Dischargeport : Ain Sukhna (instead of Djibouti)
(iii) The vessel shall be on and remain on demurrage as per previous SOA submitted subject to minor adjustments-if any-according to the SoF as issued and accepted between Master/agents/HBC until time and date of redelivery after completion of discharge at Ain Sukhna (including sea passage from Djibouti to Ain Sukhna) and demurrage to become due day by day and becomes due for payment every 5 days commencing from the date of departure Djibouti until completion of discharge. The first payment of demurrage to be paid upon arrival Ain Sukhna and tendering N.O.R. and thereafter every 5 days.
Demurrage rate: 1 st 25 days from time and date of departure Djibouti at USD 23500.- and remaining balance until completion of discharge at USD 32500.-.
(iv) Hatch/sealing/ full draft inspections to be reimbursed by charterers against owners P&I club correspondents invoices, prior booking/arrangement of same owners to present quote to charterers. If charterers can provide a more com