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Off-hire clause in time charterparty confirmed to operate as “net loss of hire” clause

14/12/12

The High Court decision in "The Athena" confirms that clause 15 of the NYPE is a net loss of hire clause. In an arbitration award, the Tribunal held that Charterers were entitled to deduct hire for a period when a vessel had refused, in what was found to be a breach of orders, to proceed to Benghazi, although the refusal had no overall effect, as other matters would anyway have prevented the vessel berthing there any earlier. Walker J. allowed an appeal by Owners, holding in a judgment delivered on 13 December 2012 that the Tribunal had erred in law in its approach.

The judgment is here.

Richard Lord QC appeared for Owners, instructed by Holman Fenwick & Willan.