1. Late redelivery under a time charter - The Achilleas from a Norwegian law perspective Anders Evje Sjørettsforeningen / Young CMI 18 April 2012

2. Starting point - The time charter A time charter will typically not include provisions dealing specifically with late redelivery Exceptions Sjørettsforeningen / Young CMI 18 April 2012

3. Background law – NMC § 389(1) NMC § 389(1): ”Unless a fixed period has been agreed for redelivery, the time carrier is obliged to commence a new voyage although this may extend beyond the agreed time for redelivery. This does not apply if the overlap is longer than what can be considered reasonable.” What is a ”fixed period”? ◦Where there is flexibility with respect to the duration of the charter, e.g. minimum 4 – maximum 6 months, ”fixed period”, no margin of allowance, owners not obliged to commence new voyage. ◦Where there is no flexibility with respect to the duration of the charter, e.g. 12 months firm, margin of allowance, owners obliged to commence new voyage. When does the overlap extend beyond what can be considered ”reasonable”? Sjørettsforeningen / Young CMI 18 April 2012

4. Background law – NMC § 389(2) NMC § 389(2), first sentence: ”For excess of time as is permissible according to paragraph one, the time charterers shall pay the agreed hire.” NMC § 389(2), second sentence: ”For other excess of time, the time charterer shall pay the current market hire, but not less than the agreed hire, plus damages according to ordinary contractual rules for other losses incurred by the time carrier as a result of the delay.” How to assess “current market hire”? Is it a condition for cIaiming ”current market hire” and ”damages according to ordinary contractual rules” that the time charterer has been negligent? Sjørettsforeningen / Young CMI 18 April 2012

5. Case law ND 1989.296 Norwegian Arbitration Award ”Singa Wiltrader”: ◦Margin of allowance ◦Negligence ◦Damages for late redelivery: ”current market hire” Sjørettsforeningen / Young CMI 18 April 2012

6. The Achilleas – Remoteness of damages Would a Norwegian Court or arbitration tribunal reach a different conclusion? ◦Preparatory works ◦Legal theory Sjørettsforeningen / Young CMI 18 April 2012