Does a reference in a charterparty to "all cargo
tanks" include a vessel's slop tanks? Not according to
Hamblen J in the recent decision of VTC v PVS [2012].
The Facts
The case involved a 10 year charterparty on an amended Shelltime
4 form. Five years into the period, Charterers entered into a
sub-charter for the carriage of a cargo of gasoline from Rotterdam.
It was Charterers' intention to bunker at Falmouth, before
proceeding to Rotterdam for loading. However, before arriving at
Falmouth, oil was found on the surface of the ballast water in one
of the ballast tanks.
Investigations revealed a 12mm crack in the port side slop tank.
Owners assured Charterers that permanent repairs would be carried
out at Rotterdam. Repairs could not be completed before the
sub-charterparty cancelling date. Sub- Charterers cancelled the
sub-charter.
