UK: Commercial Court Construes One Trip Time Charter

Last Updated: 12 April 2011
Article by Jamila Khan and Catherine Earnshaw

Ispat Industries Ltd v Western Bulk Pte. Ltd (Sabrina 1) [2010] EWHC 93 (Comm)

Ince & Co represented the successful Owners in this dispute arising under a one time charter trip. The majority of the LMAA Tribunal and subsequently the Commercial Court upheld the Owners' claim for repudiatory breach of the charter and awarded them damages in the amount of hire which would have been earned on the estimated duration of the charterparty.

Background Facts

Owners chartered the Sabrina 1 to Charterers under an NYPE charter for one time charter trip containing the usual Clause 16 exceptions ("the act of ...enemies always mutually excepted"). The charter provided among other things that "the vessel shall be employed for one time charter trip from Vizag to Mumbai lawfully trading between safe port(s), safe berth(s) and safe anchorages ..."

On 24 December 2007, Charterers sent voyage instructions to the Master detailing the load port as Vizag. On 26 December 2007, after subjects were lifted but prior to the laycan, Charterers informed Owners that they would have to cancel the fixture due to civil unrest and insurgency preventing the cargo arriving at the loadport. Owners accepted Charterers' repudiatory breach of the fixture and stated that they were looking for alternative employment for the vessel.

The vessel was not refixed until 15 January 2008. Owners commenced arbitration to claim damages in the sum of the hire which would have been earned on the 12 day time charter trip.

Prior to the commencement of arbitration proceedings, Owners obtained two Rule B attachments in New York to secure their claim. Both attachments were subsequently vacated and Charterers counterclaimed in the arbitration a sum in excess of US$1m equivalent to the attached sums.

The Tribunal's decision

A majority of the arbitrators held that Owners' claim succeeded and dismissed Charterers' counterclaim.

The Tribunal found primarily as follows:

  1. under a time charter, although the intended cargo was not available at Vizag because of "enemy activity" within clause 16 of the NYPE form, the Charterers were nonetheless obliged to find an alternative lawful cargo. The Charterers had made no attempt to do so and had simply cancelled the charter.
  2. there had been no failure to mitigate on the part of Owners.
  3. the Charterers' counterclaim would be dismissed on the grounds that neither the first nor second attachment proceedings in New York were a breach of the arbitration clause in the charterparty.

The Charterers appealed to the Commercial Court challenging the arbitration award on various grounds, including for serious irregularity under section 68 of the Arbitration Act 1996 and on questions of law under section 69 of the Act 1996. Mr Justice Teare dismissed the Charterers' challenges in full and found that, on the facts of the case, there had been neither serious irregularity nor error of law by the Tribunal.

The Commercial Court decision

The Judge held in essence as follows:

The Charterers had challenged the Tribunal's decision that the fixture was a time charter, arguing that having regard to the background matrix, the charterparty was in fact "a voyage charter or at least a charter limited to a very specific trip only". The Judge disagreed and held that although the fixture note referred to the "intended voyage" and to the "cargo intention" of iron ore, those references were to the voyage and cargo intended by Charterers. They were not apt to define the time charter trip as being only a voyage from Vizag to Mumbai carrying iron ore, but merely identified the Charterers' intention at the date of the fixture recap.

He also dismissed Charterers' argument, relying on The Kallang No 2 [2009] 1 Lloyd's Rep 124, that Owners had obtained security unreasonably in the form of the two Rule B attachments, in breach of the arbitration clause. The arbitrators' finding was confirmed by Mr Justice Teare, who held that ancillary applications for security were not a breach of an arbitration clause so long as there was no attempt to have the merits of the dispute determined other than in the agreed arbitration (The Rena K [1978] 1 Lloyd's Reports 545).

Finally, in relation to remoteness of damage, the Judge dismissed Charterers' assertion that there had been an alleged failure by the Tribunal to apply the "assumption of responsibility" test set out by the House of Lords in The Achilleas [2008] 2 Lloyd's Rep 275. He held that there had been no error of law by the Tribunal on this question. Owners had claimed damages measured by the hire that would have been paid for the expected minimum duration of the time charter trip, namely, 12 days and accordingly, there was no basis upon which it could be said that such measure of damages was contrary to market understanding or expectations.


The decision in this case confirms that while a charter for a time charter trip might in some ways be a "hybrid" charter, its nature is essentially that of a time charter on a time charter form and not a voyage charter.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.