Articles - 2009
Please click on the archive dates to navigate through archived articles.
Courts stand up for refund guarantees - 01 Dec 2009
Owners are fortunate that in these troubled economic times, an English court has recently re-affirmed existing principles relating to the construction of "on demand" guarantees and provided welcome assurance of consistency of interpretation and sensible commercial construction of these vital financial documents
Download: courts stand up for refund guarantees JT.pdf
After "the Storm" - 02 Nov 2009
When the US Court in Shipping Corporation of India v. Jaldhi Overseas Pte. Ltd. recently appeared to put an end to all use of Rule B applications to attach electronic fund transfers (EFTs) cleared through New York, an article in this paper pointed out that arbitrations (in London and elsewhere), had lost a potent edge and that some may cease to be taken seriously at all
Download: After the storm WAC.pdf
Market conditions put conversion on agenda - 01 Oct 2009
Even before the current recession, ship conversion had become of increasing importance, particularly in highly specialised sectors and trades where the conversion of a second-hand vessel can be undertaken both at a lower cost and, often more importantly, in significantly less time than the construction of a newbuilding. In the prevailing market conditions, in which many owners seem to feel that future hire or freight rates do not currently justify incurring the capital cost of a newbuilding project and some shipyards have capacity for conversion and refit work which was simply unthinkable eighteen months ago, projects for the conversion of existing tonnage appear to offer renewed scope and opportunity for both owners and shipyards alike.
Download: Market conditions put conversion on agenda JT.pdf
Trouble at Yard? Shipbuilding Contracts and Financial Defaults - 02 Aug 2009
The global financial crisis and recession have obviously shaken the foundations of commerce in every sector – but no more so than in relation to shipbuilding, where the global market has been turned "on its head". Where only a year or so ago, shipbuilders were seeking and obtaining premium prices and delivery terms across a range of newbuilding products, the period since September 2008 has seen a huge decline in newbuilding prices and numerous instances of owners cancelling or renegotiating agreements they were previously keen to perform - as credit lines have dried up, the prospects of serious financial default, including insolvency, on the part of either the shipbuilder or the purchaser have become frightening real.
Download: Trouble at Yard SRC.pdf
Limiting liability for deliberate repudiatory breaches - 01 Jul 2009
A recent High Court decision on exemption clauses illustrates the ineffectiveness of exclusion clauses where there has been a deliberate repudiation of a contract, unless the clause is drafted widely. The current financial turmoil has resulted in parties often having no alternative but to walk way from shipping and offshore contracts. This case provides a timely reminder that this decision should not be taken on the assumption that an exemption clause in the contract will protect the contract breaker from liability for the losses suffered by the other party.
Download: Limiting Liability for deliberate repudiatory breaches WAC.pdf
