QUESTION 1
On 1 April Monsoon Ltd chartered from Ali Shipping The Matahari, a Panamax vessel, for the
delivery of refined fuel oil from Dubai to one safe, East of England port. The standard form used was
a SHELLVOY6. The charterparty provided for 3 weather working days for unloading. Thereafter
demurrage was to be payable. The ship departed from Dubai on 8 April but on 9 April, the vessel was
grounded at sea because her navigational system was faulty. After two days of delay, the ship
managed to re-float itself.
On 24 April, the vessel approached the Port of Felixstowe but was required to remain at the
customary waiting area off the port limits because of industrial action at the port. On 28 April, the
vessel entered port but hit an underwater object which the charts had not revealed. Ships had
previously warned the local port authorities about “some large object” in the area.
Ali wishes to claim demurrage from Monsoon; Monsoon counterclaims damages from Ali for
breaches of their rights under the SHELLVOY6 form.
Discuss the rights and liabilities of the shipowner and charterer, assuming that English law applies.
QUESTION 2
“ Where the charterer fails to pay hire when it falls due there is no doubt but that the ship manager
has the right and, should exercise the right, to withdraw the vessel.”
Critically discuss this statement.
QUESTION 3
Marwan arranges to ship a consignment of synthetic rubber from Baku, Azerbaijan to Dubai. He is
issued with a bill of lading by the shipmaster. The bill of lading is marked “non-negotiable” and
names “Marwan” as the consignee. The ship, although owned by Hesham, is under charter to
Mohamed. The bill of lading names Mohamed as “Carrier” but there is a clause in the standard
terms and conditions that Mohamed acts as agents of Hesham. The bill of lading states that it will be
governed by English law.
During the voyage, the shipmaster detects smoke in the cargo hold. In an attempt to put out the fire,
water cannons are used. However, the crew is not trained to use the water cannons. As a result
instead of causing only minor damage, the crew damages the entire consignment with the high
pressured cannons.
It transpires that the fire has been started by the rubber becoming highly electrically charged. Many
manufacturers in the industry would have treated the rubber with a chemical to make it less static.
This was not done by Marwan.
Assuming that English law applies, discuss the rights and liabilities of the relevant parties.