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Shipping—Time charterparty—Withdrawal of vessel for non-payment of hire

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17 May 2012
Issue: 7514 / Categories: Case law , Law reports , In Court
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Petroleo Brasileiro SA v ENE Kos 1 Ltd [2012] UKSC 17, [2012] All ER (D) 18 (May)

Supreme Court, Lord Phillips P, Lord Walker, Lord Mance, Lord Clarke and Lord Sumption SCJJ, 2 May 2012


The Supreme Court considered a clause in a charterparty containing an indemnity from the charterer in favour of the owner against all consequences or liabilities arising from the master complying with the charterer’s instructions.

Andrew Baker QC and Henry Byam-Cook (instructed by Thomas Cooper Solicitors) for the charterer. Timothy Brenton QC (instructed by Ince & Co LLP) for the owner.

In 2006, the claimant ship owner time-chartered its vessel to the defendant charterer for 36 months plus or minus 15 days at charterers’ option. The charterparty was on the Shelltime 3 Form which contained a standard form of withdrawal clause that provided that if hire was not paid when due, the owner would have the right to withdraw the vessel “without prejudice to any claim owners may otherwise have on charterers under
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