Gard Shipping AS v Clearlake Shipping PTE Ltd

Gard Shipping AS v Clearlake Shipping PTE Ltd

The escalation regime under AC 11 and Clause 22 only applies where Charterers give a specific instruction to stop and wait for orders; passive failure to give discharge instructions after NOR does not trigger the escalation regime. The ordinary laytime/demurrage regime applies after NOR is tendered at the discharge port. No implied term is necessary or consistent with the Charterparty to extend the escalation regime to waiting time after NOR.

Parties
Claimant: Gard Shipping AS; Defendant: Clearlake Shipping Pte Ltd
Jurisdiction
England and Wales
Judgment Date
12 May 2017
Procedural Posture
Commercial Dispute / Final Judgment
Outcome
claim dismissed
Legal Topics
Charterparty Construction, Demurrage, Implied Terms, Floating Storage, Bunkers Liability
Contract Law Shipping Law Charterparty Construction Demurrage Implied Terms Floating Storage Bunkers Liability

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Parties

Gard Shipping AS

Claimant

Clearlake Shipping Pte Ltd

Defendant

Procedural Posture

Commercial Dispute / Final Judgment

Legal Issues

  1. 1 Whether Owners are entitled to escalated demurrage and bunkers payment for waiting time at Rotterdam under AC 11 and Clause 22
  2. 2 Whether an implied term exists to cover waiting time after NOR is tendered

Ratio Decidendi

The escalation regime under AC 11 and Clause 22 only applies where Charterers give a specific instruction to stop and wait for orders; passive failure to give discharge instructions after NOR does not trigger the escalation regime. The ordinary laytime/demurrage regime applies after NOR is tendered at the discharge port. No implied term is necessary or consistent with the Charterparty to extend the escalation regime to waiting time after NOR.

Court Disposition

claim dismissed

Orders

  • Charterers have discharged liability by paying ordinary demurrage rate; no further sums owing for demurrage or bunkers.