• Journal of Korea Port Economic Association
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• v.21 no.4
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• pp.75-101
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• 2005

Every time charter must have a final terminal date, that is a date by which the charterer is contractually obliged to redeliver the vessel. Where the law implies a margin or tolerance beyond an expiry date stipulated in the charter party, the final terminal date comes at the end of such implied extension. When the parties have agreed in the charter party on the margin or tolerance to be allowed, the final terminal date comes at the end of such agreed period. But the nature of a time charter is that the charter is for a finite period of time and when the final terminal date arrives the charterer is contractually bound to redeliver the vessel to the owner References to delivery and redelivery are strictly inaccurate since the vessel never leaves the possession of the shipowner, but the expression are conventionally used to describe the time when the period of the charter begins and ends. The legitimacy or otherwise of what is to be regarded as a vessel's final voyage must be judged at the time when the charterers give an order for the vessel to carry out the voyage in question, and then by reference to what they order her to do. The purpose of this paper aims to analyse cases on the final voyage of time charter, and specially to explore implications of the final voyage in time charter through the Gregos case.

• Journal of Arbitration Studies
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• v.30 no.4
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• pp.163-177
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• 2020

There are several ways to implement charter parties in the operation of the vessel. Under the time charter party, the charterer borrows the vessel from the shipowner and uses the vessel to benefit his business. The time charter party's legal relationship can be divided into internal and external relationships. This article deals with an internal relationship. The legal matters between the shipowner and charterer are regulated by the agreement. The NYPE is the most widely circulated type of time charter party. According to the NYPE, navigational matters fall upon the shipowner while business matter falls upon the time charterer. There are vague parts in interpreting NYPE articles. NYPE Art. 8, called the employment clause, is one of them. The Master employed by the shipowner should follow the order of the charterer. Whether the charterer has the right to order the Master of the vessel to follow the navigating route recommended by him was addressed in the Hill Harmony case by the UK Supreme Court. The court was affirmative. Under the Ocean Victory case, whether the time charterer has an obligation to order the Master to go out to escape heavy weather from the berth at the port was at issue. The Japanese lower court decided negatively. There is a tendency that many countries insert default rule in the maritime law to apply it to the case at issue in a case where there is no agreement. It serves the enhancement of legal stability; China, Japan, and Germany are such countries. The author thinks that Korea should follow the above three countries' revision of their maritime law.

• Korea Trade Review
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• v.45 no.1
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• pp.119-135
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• 2020

It is well-known that if a claim for damage [Note: Damage can be singular or plural] is made based on a breach of contract, calculating the existence and magnitude of certain profits to be deducted based on the damage can be problematic. In the case of a time charter party, even if the early redelivering vessel by the time charterers constitutes a breach of contract, it is still not an exception. In particular, interest in the shipping business seems to be relatively high in terms of how claims for damage by ship owners have been adjusted. In the case of the New Flamenco, there is a debate over whether or not to deduct the difference between the sale price immediately after redelivering the ship and the sale price upon expiration of the contract from the damage based on the breach of contract for the early time charter redelivery vessel. This paper focuses on this case since it appears to be of practical importance and has implications on how to calculate the amount of damage in the case of cancellation for early redelivery vessel in a time charter party.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.70
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• pp.39-65
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• 2016

On 2013 the English court delivered a decision that the payment obligation under time charter party is a condition. According to this judgement, The Astra, a breach of the obligation to pay hire on time entitles the owner both to withdraw the ship and sue the charterers for damages for the difference between the contract and market rate for the remainder of the contracted period. On 2015, however, the English court stood at the other side. In Spar Shipping, the court confirmed that the obligation to pay hire is not a condition of the contract but an "innominate term" - from the charterers' breach ship owners can exercise their contractual right to withdraw, but owners' right to sue for damages depends on whether the charterers have deprived the owners of the substantial benefit of the contract, or shown an intention to do so. This article aims to compare both decisions over the points that (1) the importance of on-time payment under a time charter party, (2) as a critical and main question in this article, whether the mattered payment clause is a condition or innominate term, (3) whether the on-time payment clause is merely a penalty or a reasonable liquidated damage. Based on various reasons, I am on a position that the payment of hire is not a condition but an innominate term. Default in punctual payment by a charterer, in the absent of clear contractual agreement, needs to be decided further whether that breach removes the substantial benefit of the contract from the owners.

• Journal of Navigation and Port Research
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• v.38 no.1
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• pp.81-87
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• 2014

Today, it is a trend that the demand of offshore plants is constantly growing, along with the advances in technology which are thoroughly needed to the rise of international oil price as well as offshore energy development. In addition, The main sectors of ship building, sale & purchase and chartering market regarding various kind of offshore supporting vessels that supports the business of offshore energy development is now maintaining its steady growth. However, in domestic case, the contract of time charter occasions regarding the offshore support vessel are almost non-existing situation. Thus, the relevant practical study regarding to implementation of various kinds of legal disputes and applicable laws that can be properly applied in time charter and the field of sale & purchase needs to be conducted actively. Therefore, the concept of this study has included the wide comparisons of other special provisions with the existing time-charter by making its base on "Supply Time 2005" which is the worldwide standard form of time charter in offshore support vessel market and its investigation, aiming to provide practical guidance and procedure for implementation of arbitration and applicable law issues which can be applied in legal disputes between parties.

• Journal of Korea Port Economic Association
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• v.23 no.3
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• pp.29-51
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• 2007

The purpose of this study aims to explore shipowner's lost profit and its claim resulted from delay in redelivery under time charter with the Achilleas case. In this case, the charterers submitted that there was an established prima facie measure of damages in cases of late delivery, namely the difference between the market rate and the charter-party rate for the period from the time when the vessel should have been delivered until the time of her actual redelivery. An award for lost profit in respect of a subsequent charter could only be made under the second limb because the charterers had not been told, at or before the making of the addendum, that the owners were going to enter into a subsequent fixture and that it was critical that redelivery take place on time. However, the owners said their losses that was a not unlikely consequence of the charterers' breach. There was no special rule that the first limb could only lead to damages calculated by taking the difference between the market and the charter-party rate for the overrun. To award damages in the Achilleas case on the basis of the difference between the market and the charter rate for the overrun would compensate the owners for only a fraction of the true loss caused by the breach.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.251-280
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• 2008

A party to the charter will not be able to rely upon the doctrine of frustration if an event which makes further performance impossible has been caused by his breach of the charter. Strictly speaking, this is not a situation of frustration at all but rather a case of discharge of the contract by breach. In the Sea Angel case, the defendant entered into a Lloyd's Standard Form of Salvage Agreement with owners of the casualty on the LOF 2000 form, incorporating the SCOPIC clause. The time charter was on the terms of the Shelltime 4 form. This case the trial of the action brought by the claimants owners of the vessel Sea Angel claiming outstanding hire from the defendant charterers. This Case was issued whether charterparty frustrated by refusal of port authorities to issue "No Demand Certificate" allowing port clearance pending payment of oil spillage clean-up costs. The court concluded that no attempt had yet been made to invoke the assistance of the Pakistani court to obtain the release of the vessel. There was not so radical or fundamental a change in the obligation assumed by defendant as to establish frustration. The purpose of this study aims to analyse frustration and time charter in the Sea Angel case.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.5
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• pp.73-95
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• 1993

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.43
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• pp.117-142
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• 2009

The purpose of this paper is to examine the basic principles for the examination of documents in terms of the basic duty to examine the documents, the time allowed to the banks to examine the documents, linkage among the documents, the originality of documents and their issuers, and the rejection formula of documents. Further this author would look at the changes of particular transport document including bill of lading, charter-party bill of lading and so on. From the seller's perspective, the changes of the principles and individual documents under UCP600 are the most important in the sense that they affect the criteria against which the payment is made. The major changes include the omission of the phrase "with reasonable care", in terms of the basic examination principles, substitute the phrase "five banking days following the day of presentation" for the phrase "reasonable time, not to exceed seven banking days following the days of receipt of documents", introduce the new wording about the linkage between the documents tendered, and make clear the meaning of the originality of documents as well as the rejection formula. For transport documents, even though dealing with bill of lading, charter-party bill of lading, transport document covering at least two different modes of transport, freight-forwarder bill of lading and freight collect transport documents, this paper focuses on the "transhipment" of bill of lading and the definition of charter-party bill of lading. Thus, UCP has been changed several times to reflect the new banking customs and practice. It, however, would not answer every questions which users and banks will raise. These questions may be best answered in the particular underlying contract. The UCP are necessary but not a sufficient instrument for the smooth operation of an international trade transaction. The rules are now out: it remains to be seen what the players do with it.

• Journal of Korea Port Economic Association
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• v.25 no.2
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• pp.231-246
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• 2009

The time charterer depends on speed and bunker consumption rate of time chartered vessel because it is related charterers' benefit. It is important role of stipulated speed and daily bunker consumption rate at the Time Charter Party, it is generated any dispute against speed and daily bunker consumption rate deficiency. The case of dispute is a restricted word of stipulated speed and daily bunker consumption rate at Charter Party as "about", "good weather or good weather day", "smooth water", "ocean current" and "without guarantee". It happens a dispute against speed and daily bunker consumption rate because it is not well-educated as a vessel operator regarding Time Charter Party interpretation.