Court of Appeal clarifies scope of off-hire clause in NYPE charter

23/10/13

The Court of Appeal considered in The Athena the scope of clause 15 of the NYPE timecharter form in the context of Owners' refusal to obey what were held by the arbitration tribunal to be legitimate orders by charterers to proceed on a voyage. Although as a matter of causation this did not involve any loss of time in terms of the vessel berthing at the discharge port, and although the NYPE clause was acknowledged to be a "net loss of time" clause, the Court of Appeal overturned the judgment of Paul Walker J. and held that the vessel was off-hire, as the question had to be considered exclusively in the context of loss of time in the service required of the vessel when she is not fully efficient to render that service. The concept of loss of time in the chartered service was not relevant.

The judgment is here.