Carboex SA v Louis Dreyfus Commodities Suisse SA [2012] EWCA Civ 838 (19 June 2012)

Carboex SA v Louis Dreyfus Commodities Suisse SA [2012] EWCA Civ 838 (19 June 2012)

Clause 9 of the contract of affreightment excludes from laytime any time lost by reason of a strike or its after-effects, provided the strike is the effective cause of the delay to the vessel, regardless of whether the vessel is at berth or waiting to berth; the clause is not limited to periods when the vessel is physically discharging cargo.

Citation
[2012] EWCA Civ 838
Parties
Claimant/respondent: Carboex S. A.; Defendant/appellant: Louis Dreyfus Commodities Suisse S. A.
Jurisdiction
England and Wales
Judgment Date
19 June 2012
Procedural Posture
Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Charterparty Construction, Laytime and Demurrage, Strike Clauses, Causation of Delay, Contractual Risk Allocation
Commercial Law Shipping Law Arbitration Charterparty Construction Laytime and Demurrage Strike Clauses Causation of Delay Contractual Risk Allocation

Case Brief

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Parties

Carboex S. A.

Claimant/respondent

Louis Dreyfus Commodities Suisse S. A.

Defendant/appellant

Procedural Posture

Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Does clause 9 of the contract of affreightment exclude from laytime time lost due to strike-related congestion, including after-effects of a strike?
  2. 2 Does clause 9 apply to vessels arriving after the strike has ended?
  3. 3 Is the operation of clause 9 limited to periods when the vessel is at berth and ready to discharge?

Ratio Decidendi

Clause 9 of the contract of affreightment excludes from laytime any time lost by reason of a strike or its after-effects, provided the strike is the effective cause of the delay to the vessel, regardless of whether the vessel is at berth or waiting to berth; the clause is not limited to periods when the vessel is physically discharging cargo.

Court Disposition

Appeal dismissed

Orders

  • The appeal of Louis Dreyfus Commodities Suisse S.A. is dismissed.
  • The preliminary issues are answered: 'Yes, provided the strike is the effective cause of the delay.'