Seagate Shipping Ltd v Glencore International AG

Seagate Shipping Ltd v Glencore International AG

The charterparty, properly construed, did not require the owners to obtain or maintain RightShip approval for the vessel, as such an obligation was neither expressly included nor implied by the terms or background. However, owners were obliged to permit RightShip inspection and vetting procedures at the charterers’ request under clause 8 as part of their duty to comply with employment orders.

Parties
Claimant/owner/respondent: Seagate Shipping Ltd; Defendant/charterer/claimant: Glencore International A.G.; Defendant/sub Charterer: Swissmarine Services SA
Jurisdiction
England and Wales
Judgment Date
31 July 2008
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed in part, dismissed in part
Legal Topics
Charterparty Construction, Implied Terms, Obligation to Obtain Right Ship Approval, Admissibility of Pre Contractual Negotiations, Obligation to Permit Right Ship Inspection
Maritime Law Commercial Law Contract Law Charterparty Construction Implied Terms Obligation to Obtain Right Ship Approval Admissibility of Pre Contractual Negotiations Obligation to Permit Right Ship Inspection

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Parties

Seagate Shipping Ltd

Claimant/owner/respondent

Glencore International A.G.

Defendant/charterer/claimant

Swissmarine Services SA

Defendant/sub Charterer

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether the charterparty required owners to obtain and maintain RightShip approval for the vessel
  2. 2 Whether owners were obliged to permit RightShip inspection and vetting procedures at charterers' request
  3. 3 Admissibility and effect of pre-contractual negotiations on construction of the charterparty

Ratio Decidendi

The charterparty, properly construed, did not require the owners to obtain or maintain RightShip approval for the vessel, as such an obligation was neither expressly included nor implied by the terms or background. However, owners were obliged to permit RightShip inspection and vetting procedures at the charterers’ request under clause 8 as part of their duty to comply with employment orders.

Court Disposition

Appeal allowed in part, dismissed in part

Orders

  • Declaration that owners are not obliged to obtain or maintain RightShip approval under the charterparty
  • Declaration that owners are obliged to permit RightShip inspection and vetting procedures at charterers’ request