ARTICLE
20 March 2017

Piracy – Additional Premium And Crew Costs

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In London Arbitration 11/17 it was held in respect of a charter on an amended NYPE 93 form, incorporating the BIMCO Piracy clause and the Conwartime clause, that: ..
United Kingdom Transport

In London Arbitration 11/17 it was held in respect of a charter on an amended NYPE 93 form, incorporating the BIMCO Piracy clause and the Conwartime clause, that:

  1. A claim for reimbursement of additional premium (AP) for transiting the Gulf of Aden and a call to Yemen was not analogous to a claim for hire but gave rise to a claim in debt. In this case there was no express or implied right to equitable set off of the debt and so the AP was payable by Charterers to Owners (such sums being payable within 15 days of receipt of the Owners' supported invoices or on redelivery under the Conwartime and BIMCO Piracy clauses). Charterers could then counterclaim in respect of any alleged breach of charter.
  2. The charter required the Owners to employ crew on terms that were acceptable to the ITF, and under the terms of the crew contracts the Owners could not insist on the crew remaining on board if the vessel proceeded to Yemen.  The facts meant that there was no culpable delay on the part of Owners in changing the crew. Charterers were therefore responsible for the expense of the crew change and the crew bonus, the latter remaining payable notwithstanding the crew change.

The decision clarifies the nature of such claims and illustrates the strength of Owners' position under the standard clauses.

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.

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