Application Of The Word "About" - When Does Under-Consumption Start?

The Gaz Energy No.2

On 21 June 2012, the High Court handed down its decision¹ on a time charter performance case where the issue was whether, in circumstances where the vessel has performed within the consumption warranty of "about 'X' metric tons IFO", i.e. a daily consumption of IFO between "X –5%" and "X +5%" metric tons (applying the 5% tolerance for the word "about"), the saving is to be calculated by reference to the lower figure of "X –5%" metric tons or the higher figure of "X +5%" metric tons.

Insofar as a claim by the Charterers for underperformance (i.e. over-consumption) is concerned, the issue has been well and long settled; the ruling of The Al Bida is to the effect that when the word "about" is incorporated the upper limit of the range is to be used for the calculation. For example, when the daily consumption is warranted to be "about 40 m.t.", the figure of 42 m.t. will be used for calculating the over-consumption. This benefits the Owners as the