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ARTICLE · 12 MARCH 2014

Force Majeure: Damage By Fire Does Not Constitute Mechanical Breakdown

In a recent case, the Court of Appeal narrowly interpreted a clause providing for interruptions to laytime in the event of force majeure circumstances.

United KingdomTransport

In the recent case of ED&F Man Sugar Ltd v Unicargo Transportgesellschaft GmbH (The "LADYTRAMP") [2013], the Court of Appeal took a narrow approach to interpreting provisions of a clause that provided for interruptions to laytime in the event of certain force majeure circumstances.

Clause 28 of the Sugar Charter Party 1999 provided "In the event that whilst at or off the loading place ... the loading ... of the vessel is prevented or delayed by ... mechanical breakdowns at mechanical loading plants, government interferences ... time so lost shall not count as laytime".

Shortly before the arrival of the vessel, the terminal to which the vessel had been ordered was damaged by fire, and in particular, the conveyor belt system linking the terminal to the warehouse was destroyed. Charterers alleged that this amounted to mechanical breakdown pursuant to Clause 28, since the conveyor belt no longer operated. In doing so, charterers relied on the earlier Court of Appeal

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