Bunge SA v Pan Ocean Ltd (“Sagar Ratan”)

Bunge SA v Pan Ocean Ltd (“Sagar Ratan”)

Bayuquan was not an 'Affected Area' under Clause 129 as quarantine resulted from crew infection, not port characteristics; Clause 129(h)(iii) requires causation between visit to Affected Area and delay; off-hire clauses 38 and 50 triggered by crew illness and resulting detention/quarantine; vessel did not perform service immediately required during period of delay.

Parties
Claimant: Bunge S. A.; Defendant: Pan Ocean Co., Ltd.
Jurisdiction
England and Wales
Judgment Date
06 March 2025
Procedural Posture
Arbitration Appeal / Final Judgment
Outcome
appeal dismissed
Legal Topics
Charterparty Interpretation, Off Hire Clauses, COVID 19 Quarantine, BIMCO Infectious or Contagious Diseases Clause
Maritime Law Contract Law Arbitration Charterparty Interpretation Off Hire Clauses COVID 19 Quarantine BIMCO Infectious or Contagious Diseases Clause

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Parties

Bunge S. A.

Claimant

Pan Ocean Co., Ltd.

Defendant

Procedural Posture

Arbitration Appeal / Final Judgment

Legal Issues

  1. 1 Interpretation of BIMCO Infectious or Contagious Diseases Clause for Time Charter Parties 2015 (Clause 129)
  2. 2 Definition and application of 'Affected Area' under Clause 129
  3. 3 Causation requirement under Clause 129(h)(iii)

Ratio Decidendi

Bayuquan was not an 'Affected Area' under Clause 129 as quarantine resulted from crew infection, not port characteristics; Clause 129(h)(iii) requires causation between visit to Affected Area and delay; off-hire clauses 38 and 50 triggered by crew illness and resulting detention/quarantine; vessel did not perform service immediately required during period of delay.

Court Disposition

appeal dismissed

Orders

  • Tribunal's award upheld
  • Owners not entitled to recover withheld hire or indemnity