The Obligation To Proceed With Utmost Despatch: Extending Monroe V Ryan

CSSA Chartering and Shipping Services SA V Mitsui O.S.K Lines Ltd - "Pacific Voyager"

In a welcome decision for charterers, the Commercial Court has clarified an as-yet unresolved point of law concerning the parameters of a ship owner's obligation to proceed to the loadport with utmost despatch. Clyde & Co represented the  successful Claimant charterers in this landmark result.

The case of Monroe Brothers Limited v Ryan [1935] 2 KB 28 established that where a voyage charterparty contains an obligation on an Owner to proceed with all convenient speed to the loading port and gives a date when the vessel is expected to load, there is an absolute obligation on the Owner to commence the approach voyage by a date when it is reasonably certain that the vessel will arrive at the loading port on or around the expected ready to load date ("ERTL"). The usual charterparty exceptions thus only apply once the approach voyage is commenced and cannot avail an Owner prior to this