Office: +44 203 968 0500
24/7 Emergency Response: +44 7887 710 950
Select Page

Repudiatory breach for failure to pay hire

Repudiatory breach for failure to pay hire | BDM Blog | BDM Law

This recent case1 is a nice example of the problems that arise when charterers fall behind with hire payments.

This area of law is a minefield for ship owners and operators. One wrong step or precipitant move can lead to a repudiatory breach by the ship owner. Henshaw J sets out the relevant parts of the Spar Shipping2 test in finding that there was a clear repudiatory and renunciatory breach. There was a vain attempt to argue that the owners’ suspension of performance as per their contractual rights was itself a repudiation. That was given short shrift and it was confirmed that owners were entitled to enter into an agreement with the voyage charterers pursuant to their lien.

In this case, the owners handled the situation well and successfully obtained summary judgment for the outstanding hire up to termination as well as damages for post-termination hire up to the date of discharge of the cargo when the vessel became free. The wider damages claim remains extant although it remains to be seen whether that claim will be pursued as the charterers appear to have gone to ground as happens in so many of these cases.

At BDM, we have handled many cases involving non-payment of hire. One of our most popular posts can be found here setting out the top ten things to consider when your time charterer is not paying hire.

  1. AI Gioris Oil Trading Limited v AG Shipping & Energy Pte. Limited (The “Marquessa”) [2021] EWHC 2319 (Comm)
  2. Grand China Logistics Holding (Group) Co. Ltd. v Spar Shipping AS [2016] EWCA Civ 982
Nick Burgess - author profile
Nick Burgess
Partner
Constantin von Hirsch - author profile
Constantin von Hirsch
Trainee
BDM is a specialist shipping law firm offering high quality legal advice and representation at a reasonable price. Please follow us on social media by clicking below.

Other Recent Blogs

  • BDM supports launch of third edition of Shipping and the Environment | BDM Blog | BDM Law
    March 9, 2023

    BDM supports launch of third edition of Shipping and the Environment

    We were delighted to support Colin, Charles and Jonathan at the launch of the third edition of this weighty tome. Environmental regulation is one of the main challenges faced by shipping and all those engaged in the shipping industry. This book is not just about oil spills. [...]

    Read more >
  • BDM and London P&I attend Six Nations | BDM Blog | BDM Law
    February 15, 2023

    BDM and London P&I attend Six Nations

    David McInnes and Joshua Geesing of BDM Law were pleased to attend the Six Nations match between England and Italy alongside Simon Leslie and Simon Chapman of London P&I Club. BDM Law are committed to the Italian market and continue to service a large number of clients b[...]

    Read more >
  • 2023 and what to expect | BDM Blog | BDM Law
    February 9, 2023

    2023 and what to expect

    It’s difficult to predict what lies ahead but it’s illuminating to revisit what we said at the beginning of 2022. By and large, we were right to say that 2022 would be a strong year for shipping and ship owners. The predicted rise in ship casualties has not quite materia[...]

    Read more >
+44 203 968 0500
+44 7887 710 950