Carmine Shipping Ltd. v Hanjin Shipping Ltd.

Carmine Shipping Ltd. v Hanjin Shipping Ltd.

Recap telexes and references to laycan dates did not constitute binding orders to reduce speed; the service speed in the charterparty applied unless an express order was given. Deductions from hire made by the charterers prior to ascertaining the facts and formulating a reasonable performance claim were unauthorised. Interest is payable on such unauthorised deductions.

Parties
Claimant/owner: Carmine Shipping Limited; Defendant/time Charterer: Hanjin Shipping Limited
Jurisdiction
England and Wales
Judgment Date
23 June 2003
Procedural Posture
Commercial Shipping Dispute (charterparty) / Judgment After Trial
Outcome
Judgment for the claimant (owners) on the main issues; charterers' deductions from hire were unauthorised and interest is payable.
Legal Topics
Charterparty Interpretation, Hire Deductions, Performance Warranties, Interest on Wrongful Deductions
Maritime Law Contract Law Charterparty Interpretation Hire Deductions Performance Warranties Interest on Wrongful Deductions

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Parties

Carmine Shipping Limited

Claimant/owner

Hanjin Shipping Limited

Defendant/time Charterer

Procedural Posture

Commercial Shipping Dispute (charterparty) / Judgment After Trial

Legal Issues

  1. 1 Whether recap telexes constituted binding orders as to speed under the charterparty
  2. 2 Whether references to laycan dates constituted orders to reduce speed
  3. 3 How to calculate vessel performance under the charterparty

Ratio Decidendi

Recap telexes and references to laycan dates did not constitute binding orders to reduce speed; the service speed in the charterparty applied unless an express order was given. Deductions from hire made by the charterers prior to ascertaining the facts and formulating a reasonable performance claim were unauthorised. Interest is payable on such unauthorised deductions.

Court Disposition

Judgment for the claimant (owners) on the main issues; charterers' deductions from hire were unauthorised and interest is payable.

Orders

  • Charterers to pay interest on unauthorised deductions from hire in accordance with clause 9(b) of the charterparty.
  • Parties to calculate the precise financial implications of the judgment based on the principles determined.