Warranting Port Safety

The Court of Appeal in AIC Limited v. Marine Pilot Limited, The Archimidis (7 March 2008) has held that the words "safe port" in a voyage charter will always be treated as a warranty by charterers that the port in question is safe, even if owners and charterers agree in advance a single loading or discharge port. This issue had not previously come before the Court of Appeal and it has long been unclear if there could be a warranty of port safety where there is an agreed single port.

The voyage charter stipulated "load one safe port Ventspils". The charterers, AIC, argued that it was illogical to speak of a warranty of port safety when the owners knew at the time of the charter where the vessel would be sent. They contended that there could only be a warranty of port safety where a charterer had a choice where to direct a vessel to load or discharge.