HBC Hamburg Bulk Carriers GmbH & Co KG v Huyton Inc [2014] EWHC 4176 (Comm) (12 December 2014)

HBC Hamburg Bulk Carriers GmbH & Co KG v Huyton Inc [2014] EWHC 4176 (Comm) (12 December 2014)

The cost of transiting the Suez Canal was an expense arising from the charterers' failure to discharge at Djibouti and required to perform the amended voyage to Damietta, not the original voyage. The indemnity clause in addendum no.1 covers such expenses, and the tribunal erred in limiting indemnity to only 'additional' expenses not otherwise incurred. The charterers are liable to indemnify the owners for the full Suez Canal transit costs.

Citation
[2014] EWHC 4176 (Comm)
Parties
Claimant Owners: HBC Hamburg Bulk Carriers GmbH & Co KG; Respondent Charterers: Huyton Inc
Jurisdiction
England and Wales
Judgment Date
12 December 2014
Procedural Posture
Arbitration Appeal / High Court Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed; arbitration award set aside to the extent inconsistent with this judgment.
Legal Topics
Charterparty Construction, Indemnity for Expenses, Interpretation of Contract Clauses, Voyage Charter, Demurrage, Suez Canal Transit Costs
Commercial Law Shipping Law Arbitration Charterparty Construction Indemnity for Expenses Interpretation of Contract Clauses Voyage Charter Demurrage +1 more

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Parties

HBC Hamburg Bulk Carriers GmbH & Co KG

Claimant Owners

Huyton Inc

Respondent Charterers

Procedural Posture

Arbitration Appeal / High Court Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether charterers are liable to indemnify disponent owners for Suez Canal transit costs under addendum to charterparty
  2. 2 Proper construction of indemnity clause in addendum no.1

Ratio Decidendi

The cost of transiting the Suez Canal was an expense arising from the charterers' failure to discharge at Djibouti and required to perform the amended voyage to Damietta, not the original voyage. The indemnity clause in addendum no.1 covers such expenses, and the tribunal erred in limiting indemnity to only 'additional' expenses not otherwise incurred. The charterers are liable to indemnify the owners for the full Suez Canal transit costs.

Court Disposition

Appeal allowed; arbitration award set aside to the extent inconsistent with this judgment.

Orders

  • Charterers held liable to indemnify disponent owners for Suez Canal transit costs as per addendum no.1.