Cargo Hold Inspection And Reinspection

Pan Ocean Co Ltd v Daelim Corporation [2023] EWHC 391 (Comm)

It is common in time charters for a Vessel's cargo holds to be required to satisfy an inspection by a surveyor prior to loading.

In this case, the cargo holds were required by Clause 69 to pass an inspection of an "independent" surveyor. If the surveyor rejected the holds as unsuitable, then "...the vessel to be placed off-hire until the vessel passes the same inspection and any expense/time incurred thereby for Owners' account". The question which arose in the case was: what obligation do the parties have to arrange the second inspection?

The vessel charterers brought an appeal against the decision of an LMAA tribunal on this point, arguing that the tribunal had implied a strict, unilateral obligation on the charterers to have the cargo holds reinspected "without delay". They submitted that the implied term which was necessary in such circumstances was to impose an obligation on both parties to