Project Cargo shipments: tips from legal advisor TRANSPORT SHIPPING TRADE Project Cargo shipments: tips from legal advisor Natalia Myroshnychenko, Interlegal

Pre-shipment Cancellation of shipment

Owners Charterers Gencon/Booking Note

Grounds for cancellation Charterers’ cancellation: Non-readiness of cargo Financial problems of Cargo Buyers Owners’ cancellation: Vessel’s delay for laycan Impossibility to take another part cargo

We hope you understand charterer’s current situation and forgive us for causing trouble for this contract. Charterers:

Notice of cancellation Cancelling Party Grounds Cancelling clause Jurisdiction Cancelling Party Grounds for cancelling Referral to cancelling clause if any Jurisdiction if no clear statement in the fixture

Counterparty to Cancelling Party Immediate short claim Statement of contract breach Declaration of damages Grounds for recovery Jurisdiction Statement of contract breach if any Declaration of damages Grounds for damages recovery Jurisdiction/governing law if necessary По горячим следам можно еще что-то получить как cancelling fee или возместить реальные убытки, потом взыскание занимает время и доп.деньги

Voyage Late delivery

? Charterer Shipowner

Charterers’ position Owners’ position Owners’ failure to prosecute the voyage with due dispatch Breach of delivery term Owners’ position Justifiable deviation

English case law justifiable deviation – voyage charter to effect repairs to the ship (see Kish v. Taylor [1912]) to avoid capture or confiscation (see the Teutonia [1872]) to save life or property (see Monarch v. Stamp [1880]) to load full cargo (see Wallems v. Muller [1972])

Registered Owners Time Charter Time Charterer Charterer Voyage Charter

DELIVERY TERM CLAUSE/AGREEMENT Agreed port rotation Fixed transit time ‘First out’ basis Penalties clause Оговорка о штрафных санкциях дает возможность, в конченом итоге, завершить спор коммерчески, не предъявляя завышенные убытки

Post - voyage Dispute

“Arbitration in London, English law” 15

without any reference to the number of arbitrators Arbitration in London without any reference to the number of arbitrators One arbitrator only No express mechanism for the appointment of the arbitrator if the parties are unable to agree on the appointment: in such cases the arbitrator must be appointed by the High Court, which may take time and involve significant expense. Beware, an arbitration clause that refers to “Arbitration in London, English law to apply” is considered to be an agreement to refer any dispute to one arbitrator only. If the parties cannot agree who that arbitrator will be then an application must be made to the English High Court to appoint the arbitrator. This can take months and involve significant costs.

English Law, Arbitration in London, the reference to three arbitrators in accordance with the LMAA Terms

Transport, Shipping & Trade IMMTA Transport, Shipping & Trade 2/4 Observatorny lane, office 57 Odessa, 65014, Ukraine email: office@interlegal.com.ua tel.: +38 0482 33.75.28 fаx.: +38 0482 49.69.25 mob.: +38 048 703.75.05