International Trade Law

Charterparty Cases

The Maratha Envoy [1978] A.C. 1

Key Point

• Where there is no express provision dealing with the allocation of the risk of delay through congestion at the port, under a port charter, the risk lies with the shipowner until the ship is an “arrived ship”. Under a berth charter, however, the risk lies with the shipowner, wherever the waiting place lies.

Facts

• A charterparty provided that time for discharge was to run whether the ship was in berth or not. The vessel proceeded to the estuary of the river Weser which had four ports, one of which was nominated as the discharge port. All the four ports were full, so the vessel anchored at the only available waiting area 25 miles seaward of the mouth of the river. In the coming days, the ship made two voyages upriver to the entrance to the discharge port in order to qualify as an “arrived ship”. However, the vessel was not able to berth for another few weeks, after which time the cargo was discharged in 10 days.
• The shipowners brought a claim against the charterers for demurrage, based on the vessel becoming an arrived ship on her two qualifying voyages.