Glory Wealth Shipping Pte Ltd v North China Shipping Ltd & Anor

Glory Wealth Shipping Pte Ltd v North China Shipping Ltd & Anor

Early redelivery under the head charter is not to be taken into account in assessing damages for repudiation of a sub-charter unless it is causally connected to the breach; the tribunal correctly assessed damages by reference to the difference between the contract rate and the market rate, supplemented by actual earnings as a reflection of the market.

Parties
Applicant (respondent in the Arbitration): Glory Wealth Shipping Pte Limited; Respondent (claimant in the Arbitration): North China Shipping Limited; Vessel: M/V 'North Prince'
Jurisdiction
England and Wales
Judgment Date
08 July 2010
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
Appeal dismissed
Legal Topics
Damages Assessment, Charterparty Repudiation, Measure of Damages, Early Redelivery, Sub Charter and Head Charter Relationship
Commercial Law Maritime Law Arbitration Damages Assessment Charterparty Repudiation Measure of Damages Early Redelivery Sub Charter and Head Charter Relationship

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Parties

Glory Wealth Shipping Pte Limited

Applicant (respondent in the Arbitration)

North China Shipping Limited

Respondent (claimant in the Arbitration)

M/V 'North Prince'

Vessel

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether early redelivery under the head charter should be taken into account in assessing damages for repudiation of a sub-charter
  2. 2 What is the correct measure of damages when a vessel is redelivered early under a head charter after sub-charter repudiation

Ratio Decidendi

Early redelivery under the head charter is not to be taken into account in assessing damages for repudiation of a sub-charter unless it is causally connected to the breach; the tribunal correctly assessed damages by reference to the difference between the contract rate and the market rate, supplemented by actual earnings as a reflection of the market.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.