Songa Product and Chemical Tankers III AS v Kairos Shipping II LLC [2025] EWCA Civ 1227 (07 October 2025)

Songa Product and Chemical Tankers III AS v Kairos Shipping II LLC [2025] EWCA Civ 1227 (07 October 2025)

Clause 29 of the BIMCO Barecon 2001 does not give owners a broad right to require charterers to deliver the vessel to any port convenient to them after early termination. Instead, owners must repossess the vessel at its current or next port unless it is impracticable or impossible to do so, in which case a convenient alternative may be chosen. The clause does not impose a general obligation on charterers to sail the vessel to a distant port at their own expense as gratuitous bailees.

Citation
[2025] EWCA Civ 1227
Parties
Claimant/respondent: Songa Product and Chemical Tankers III AS; Defendant/appellant: Kairos Shipping II LLC
Jurisdiction
England and Wales
Judgment Date
07 October 2025
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court Under Section 69 Arbitration Act 1996
Outcome
Appeal dismissed
Legal Topics
Interpretation of Standard Form Contracts, Bareboat Charterparty Termination and Repossession, Obligations of Gratuitous Bailee, Arbitration Appeals, Repossession Rights Under BIMCO Barecon 2001
Commercial Law Maritime Law Contract Law Interpretation of Standard Form Contracts Bareboat Charterparty Termination and Repossession Obligations of Gratuitous Bailee Arbitration Appeals Repossession Rights Under BIMCO Barecon 2001

Case Brief

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Parties

Songa Product and Chemical Tankers III AS

Claimant/respondent

Kairos Shipping II LLC

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court Under Section 69 Arbitration Act 1996

Legal Issues

  1. 1 Proper construction of clause 29 of BIMCO Barecon 2001 regarding repossession after early termination
  2. 2 Whether owners can require charterers to deliver vessel to any port convenient to owners or must repossess at current/next port unless impracticable

Ratio Decidendi

Clause 29 of the BIMCO Barecon 2001 does not give owners a broad right to require charterers to deliver the vessel to any port convenient to them after early termination. Instead, owners must repossess the vessel at its current or next port unless it is impracticable or impossible to do so, in which case a convenient alternative may be chosen. The clause does not impose a general obligation on charterers to sail the vessel to a distant port at their own expense as gratuitous bailees.

Court Disposition

Appeal dismissed

Orders

  • Partial Final Award remitted to the arbitral tribunal for reconsideration in light of the Court's construction of clause 29