• 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.