Essay Churchill Shipping LTD own and have Chartered to Global SA Case Study – Law Assignment Help

Assignment Task:

Task:

Scenario 1 The bulk carrier “ARCHIMEDES” was chartered for a period of two years at a rate of U.S.$30,000 per day. The charter, which was on the NYPE ’46 form, provided that “payment of the said hire to be made in Athens in cash in U.S. currency, semi-monthly in advance …”. On 14 February, the charterers set in motion a payment of US$400,000 in respect of the hire for the second half of the month. This figure was calculated by taking US$420,000 (i.e., 14 days @ US$30,000 per day) and deducting from it US$20,000 in respect of over-consumption of bunkers over the vessel’s previous three voyages. There had been no previous complaints about the vessel’s speed and consumption but on studying log abstracts supplied by the owners under the terms of the charter, the charterers had noted that the vessel’s consumption was in excess of the consumption described in the preamble to the charter. The payment was made by electronic transfer, and the electronic transmission was received by the owners’ bank on 15 February. But because it was received after 1500 hours the transfer was only processed the following day, 16 February, when the owners’ account was credited. The paying bank’s instructions, however, provided that the payment was to have a “value date 14th February”. The charterers were debited interest for two days and the owners’ account was credited with the like amount. After being notified of the arrival of the funds, the owners sent an email purporting to terminate the charterparty (which still had a year to run), and alleging that the owners were accepting a repudiatory breach of contract by the charterers. At the date of this email, the market rate for a one year charter of ships like the “ARCHIMEDES” was US$30,500 per day and for two year charters was US$29,500 per day. The owners refused to accept any further employment orders from the charterers.

TASK 1 Please explain whether the owners were entitled to do what they did and discuss whether any damages are due to either party.

TASK 2 Please discuss whether your answer would have been any different if the charter had been on the NYPE ’93 form, materially un-amended.

Scenario 2 Churchill Shipping LTD own and have chartered to Global SA their bulk carrier “CLEMENTINE” under a time charter. “CLEMENTINE” has mainly been employed under the time charter taking SBM from Paranaguá to Ravenna. Loading a full cargo at Paranagua, including waiting time, usually takes 5 days; discharge at Ravenna, including waiting time, also usually takes 5 days. The normal laden voyage time from Paranaguá to Ravenna is 21 days. The time charter for “CLEMENTINE” is on the NYPE ’93 form with no material amendments or additions to the printed text. She was delivered under the charter on 15 January. The charter period is expressed to be “about 12 months, 15 days more or less”. Redelivery can take place anywhere within Institute Warranty Limits. The daily rate of hire is US$ 30,000, payable monthly in advance and, since the charter was signed, time charter rates for vessels of this type and size have increased by about 25%. In early Dec