Songa Product and Chemical Tankers III AS v Kairos Shipping II LLC

Songa Product and Chemical Tankers III AS v Kairos Shipping II LLC

Clause 29 of the BIMCO Barecon 2001 charter does not entitle owners to require charterers to sail the vessel to any port convenient to them for repossession if the vessel is already at a safe and accessible port; owners must repossess at the current port unless it is impracticable or impossible, and must do so as soon as reasonably practicable. The clause does not impose a broad obligation on charterers to sail the vessel to a distant port at their own expense as gratuitous bailees.

Parties
Claimant/respondent: Songa Product and Chemical Tankers III AS; Defendant/appellant: Kairos Shipping II LLC
Jurisdiction
England and Wales
Judgment Date
10 July 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Bareboat Charter, Contract Interpretation, Repossession of Vessel, Arbitration Appeal
Commercial Law Maritime Law Contract Law Bareboat Charter Contract Interpretation Repossession of Vessel Arbitration Appeal

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Parties

Songa Product and Chemical Tankers III AS

Claimant/respondent

Kairos Shipping II LLC

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Proper interpretation of clause 29 of BIMCO Barecon 2001 standard form bareboat charter regarding repossession of vessel after early termination
  2. 2 Whether owners can require charterers to sail vessel to any port convenient to owners or must repossess at current/next port unless impracticable

Ratio Decidendi

Clause 29 of the BIMCO Barecon 2001 charter does not entitle owners to require charterers to sail the vessel to any port convenient to them for repossession if the vessel is already at a safe and accessible port; owners must repossess at the current port unless it is impracticable or impossible, and must do so as soon as reasonably practicable. The clause does not impose a broad obligation on charterers to sail the vessel to a distant port at their own expense as gratuitous bailees.

Court Disposition

Appeal dismissed

Orders

  • High Court judgment affirmed
  • Partial Final Award remitted to arbitral tribunal for reconsideration in light of legal interpretation