Carboex SA v Louis Dreyfus Commodities Suisse SA

Carboex SA v Louis Dreyfus Commodities Suisse SA

Clause 9 of the contract of affreightment operates to protect the charterer in respect of any time lost to the vessel by reason of a strike or unofficial stoppage, including delays caused by congestion or after-effects, provided the strike is the effective cause of the delay. The clause is not limited to time when the vessel is at berth or when the strike is ongoing. The effective cause test is a question of fact in each case.

Parties
Claimant/respondent: Carboex S. A.; Defendant/appellant: Louis Dreyfus Commodities Suisse S. A.
Jurisdiction
England and Wales
Judgment Date
19 June 2012
Procedural Posture
Appeal From Arbitration Award (commercial Contract Dispute) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Laytime and Demurrage, Charterparty Construction, Strike Clauses, Causation of Delay, Contractual Risk Allocation
Commercial Law Arbitration Shipping Law Laytime and Demurrage Charterparty Construction Strike Clauses Causation of Delay Contractual Risk Allocation

Case Brief

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Parties

Carboex S. A.

Claimant/respondent

Louis Dreyfus Commodities Suisse S. A.

Defendant/appellant

Procedural Posture

Appeal From Arbitration Award (commercial Contract Dispute) / Court of Appeal Judgment

Legal Issues

  1. 1 Does clause 9 of the contract of affreightment apply to vessels delayed by the after-effects of a strike which has ended?
  2. 2 Does clause 9 apply to vessels which have arrived after the strike has ended?
  3. 3 Does the strike exception in clause 9 apply to a vessel unable to berth due to berth congestion caused by a strike?

Ratio Decidendi

Clause 9 of the contract of affreightment operates to protect the charterer in respect of any time lost to the vessel by reason of a strike or unofficial stoppage, including delays caused by congestion or after-effects, provided the strike is the effective cause of the delay. The clause is not limited to time when the vessel is at berth or when the strike is ongoing. The effective cause test is a question of fact in each case.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • Each of the preliminary issues is answered: 'Yes, provided the strike is the effective cause of the delay.'