3 May The Court considered the relationship between clauses 21, 27 and 28 of the SHELLTIME 4 standard form, which provide, amongst other things. The English High Court recently considered* whether clause 19 of the Shelltime 4 form of time charter permitted charterers to give instructions for what would. In a recent arbitration a panel of three London arbitrators gave a decision on the meaning and effect of a notice under clause 3 of the Shelltime 4 form.

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If and to the extent that such failure affects the time taken by the vessel to perform any services under this charter, hire shall be reduced by an amount equal to the value, calculated at the rate of hire of the time so lost…. The charterers argued that their orders were for a legitimate last voyage by virtue of clause 19 and accordingly, that the owners were in repudiatory breach of the charterparty when they instructed the master not to comply with these orders.

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This discussion of the wording and interpretation of the charterparty clauses will be of invaluable assistance to owners and charterers who are fixing tankers on these forms. First Number of Pages: Shelltime 4 III. In support of their position, the charterers argued that clause 19 absolves charterers from liability for late redelivery on conclusion of a legitimate last voyage and also permits the giving of orders for what would otherwise be an illegitimate last voyage.

Space available to charterers: Both to blame collision clause: It may not be necessary for all other charterers. Clause 27 a …Further, neither the vessel, her master or Owners, nor Charterers shall, unless otherwise in this charter expressly providedbe liable for any loss or damage or delay or failure in performance hereunder arising or resulting from… arrest or restraint of princes, rulers or people. If you have a question about this product, please contact us directly.

In addition, the giving of a clause 3 iii notice amounts to an implied request to the Owners to rectify the situation which justifies the giving of the notice. Shelltime ahelltime II. On the assumption that Owners had previously exercised due diligence in discharging the duties of maintaining the vessel laid upon them by the charterparty, whether: It does not override it.

Home Uncategorized Shelltime 4 — who bears risk of arrest? An illegitimate order made by Charterers to Owners is not merely ineffective but is treated as a breach of contract.


Shelltime 4 – who bears risk of arrest?

December PDF Version. In this case, Charterers also made an express request to Owners to rectify the situation, which the tribunal held was also a breach of the charterparty. In reaching his decision in favour of the owners Peter Gross QC held that there is no inconsistency between clauses 4 and 19, clause 19 does no more than qualify or mitigate clause 4.

Shipboard personnel and their duties: Clause 21 a On each and every occasion that there is loss of time [Not in standard form: In ShellLNGTime, the amending wording should be attached not only to sub-clauses 1 c and jbut also to sub-clauses 4 a and cand the second sentence lines to of sub-clause 4 d will require to be deleted.

Ship to ship transfers Appendices I. Throughout the charter service Owners shall, whenever passage of time, wear and tear or any event…requires steps to be taken to maintain or restore the conditions stipulated in Clauses 1 and 2 aexercise due diligence so to maintain or restore the vessel. However, Peter Gross QC distinguished the current case on the basis that the wording of clause 19 of Shelltime 4 and clause 18 of Shelltime 3 differed in one fundamental way: It appears, therefore, that the express provision in ShellLNGTime clause 4 drequiring owners to make at their own expense and in their own time any modifications required as a result of changes in international regulations or standards, may only be making explicit something which is already implicit in Shelltime and Shelltime Suspicions were aroused when the documents were presented at the loadport and the vessel was detained in September in Venezuela, where she remained at the time of judgment.

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The “crucial words” in clause 18 of the earlier form, which stated that it would apply “notwithstanding” the provisions of clause 3 as to redelivery, were not replicated in form or substance in clause 19 of Shelltime 4.

According to the tribunal, the position regarding the clause 3 iii notice is analogous to orders to proceed to a particular port which carry with them the implied promise that the port is safe, i. September Binding Format: These charterparty forms are widely used in the market by owners and charterers both within and outside the Shell Group. The tribunal held that Owners’ losses incurred due to the breach of the charterparty by Charterers were recoverable. Additional clauses 1 It was emphasised that i the issue is whether the determination of the question of law will substantially affect the rights of the parties, not whether it may; and ii it is for a party asserting that he does not need the permission of the Court under s 69 2 don the grounds that he has an agreement falling under s69 1 ato establish that fact.


Accordingly, the redelivery window was 8 th January — 17 th February Of course, it is possible for the parties to amend the standard forms so as to prevent them from requiring owners to make at their own expense any and all modifications to the vessel which may be required as a result of changes in regulations.

However, under this interpretation of clause 1 g the owners will be in breach of charter as soon as the vessel is no longer able to perform, and will not be allowed a reasonable time to put things right before they are in breach of charter. On the assumption that the Owners had previously exercised due diligence in discharging the duties of maintaining the vessel imposed by the charterparty, the clause 3 iii notice was illegitimate.

Steamship Mutual – Time Charter – Shelltime 4 – Charterers’ Notice on Vessel Condition

shellltime Owners agreed with the first proposition shwlltime. In a recent arbitration a panel of three London arbitrators gave a decision on the meaning and effect of a notice under clause 3 of the Shelltime 4 form. After some debate about the validity of these orders, the owners refused to accept them and instructed the master not to comply with them.

Detailed description and performance: They then sought an arbitration award, inter alia, on the following preliminary issues: If the increased risk materialises in the course of shelltimf voyage, the clause comes into effect irrespective of whether it arises subsequently to the original voyage orders, ie the position is analogous to that relating to safe ports.

The relevant terms of clause 3 are as follows: We detected that your JavaScript seem to be disabled.

January PDF Version. The charterparty in that sheltlime had been Shelltime 3 form in which clauses 3 and 18 were similar to clauses 4 and 19 of Shelltime 4. Oil major acceptability A vessel was chartered on an amended Shelltime 4 form for a period of 5 years. In relation to Clause 28, it was said that the reference is to the undertaking of a voyage.

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