The New York Produce Exchange (NYPE) 1946 time charterparty form
remains highly popular in bulk shipping. Following the High
Court's decision in Dry Bulk Handy Holding Inc &
another v Fayette International Holdings Ltd & another
[2012] EWHC 2107 (Comm) ("BULK CHILE"), however,
it is now clear that one of the key weapons in the owners'
armoury when dealing with unpaid hire – namely the exercise
of a lien on sub-hire – is unavailable on the standard
wording of NYPE 1946.
Background
Clause 18 of the standard form NYPE 1946 stipulates that
"the Owners shall have a lien upon all cargoes, and all
sub-freights for any amounts due under this Charter". If
the charterers' obligation to pay hire is as set out in clause
5 of the standard form, payment must be made by the charterers to
the owners "semi-monthly in advance" – and
if it is not so paid, the hire becomes an "amount due
under this Charter", triggering the provisions of clause
18.
