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ARTICLE · 24 SEPTEMBER 2013

Charterers entitled to withhold hire due to underperformance of vessel

Charterers are entitled to withhold part payment due to owners' breach of utmost dispatch warranty.

AustraliaTransport

In brief - Carrier found liable for unreasonable delays due to slow steaming

Arbitrators find that charterers are entitled to withhold part payment due to owners' breach of utmost dispatch warranty and this decision is upheld on appeal.

Charterers claim breach of clause 8 in NYPE Form of Charter Party

The case Bulk Ship Union SA v Clipper Bulk Shipping Limited (The "Pearl C"), (2012) 2 Lloyds Rep 533 concerned a claim by charterers against owners that there had been a breach of clause 8 in the NYPE Form of Charter Party. That clause requires that "the Captain shall prosecute his voyages with the utmost dispatch".

The owners claimed US$624,276.77 in respect of the balance of hire due under the charter, which had been for a period of about 9-12 months. The charterers claimed to be entitled to withhold hire for underperformance on the basis of the owners' breach of the utmost dispatch warranty in clause 8 and an entitlement to deduct for time lost due to slow

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