TRANSPORT SHIPPING TRADE Project Cargo shipments tips from

TRANSPORT SHIPPING TRADE Project Cargo shipments: tips from legal advisor Natalia Myroshnychenko, Interlegal

Pre-shipment Cancellation of shipment

Owners Charterers Gencon/Booking Note

Grounds for cancellation • Charterers’ cancellation: Non-readiness of cargo Financial problems of Cargo Buyers • Owners’ cancellation: Vessel’s delay for laycan Impossibility to take another part cargo

Charterers: We hope you understand charterer’s current situation and forgive us for causing trouble for this contract.

Cancelling Party Notice of cancellation • Grounds • Cancelling clause • Jurisdiction

Counterparty to Cancelling Party Immediate short claim • • Statement of contract breach Declaration of damages Grounds for recovery Jurisdiction

Voyage Late delivery

? Shipowner Charterer

Charterers’ position Owners’ failure to prosecute the voyage with due dispatch Breach of delivery term Owners’ position Justifiable deviation

English case law justifiable deviation – voyage charter • to effect repairs to the ship (see Kish v. Taylor [1912]) • to avoid capture or confiscation (see the Teutonia [1872]) • to save life or property (see Monarch v. Stamp [1880]) • to load full cargo (see Wallems v. Muller [1972])

Registered Owners Time Charterer Voyage Charterer

DELIVERY TERM CLAUSE/AGREEMENT • Agreed port rotation • Fixed transit time • ‘First out’ basis • Penalties clause

Post - voyage Dispute

“Arbitration in London, English law”

Arbitration in London without any reference to the number of arbitrators One arbitrator only No express mechanism for the appointment of the arbitrator

English Law, Arbitration in London, the reference to three arbitrators in accordance with the LMAA Terms

IMMTA Transport, Shipping & Trade 2/4 Observatorny lane, office 57 Odessa, 65014, Ukraine email: office@interlegal. com. ua tel. : +38 0482 33. 75. 28 fаx. : +38 0482 49. 69. 25 mob. : +38 048 703. 75. 05