SupplyTime2005/Owner terminates contract due to delayed payment

Patricklee

Contract is standard Supply Time 2005;
3 years firm period;
only 1 year execution, charterers do not pay hire without any reasons;
Owner terminated contract finally.
my question is how much owner can claim for loss? can owner claim the rest 2 year profit?

many thx

Patricklee

no one is interest in this case? welcome clarifications.

艨艟剑客

Once the Owner accept the Charterers' repudiation, i.e., rejection of paying due hire and terminate the contract, the Owner need to take reasonable steps to mitigate its loss, e.g., to look for substitute charterers etc.. When the Owner signed the new charterparty with new substituted Charterers within a reasonable period, and the new hire payable to the Owner is less than the original hire which should be paid by that original Charterer in default, then the Owner can claim damages against that breaching Charterer for the difference between the new hire and the old hire for the rest two years. If the Owner can prove other actual losses caused by the breach of the Charterer, it is also possible to claim that sum against the Charterer.

Only for your reference.

Patricklee

3# 艨艟剑客

thx a lot.
we are under negotiation of new project currently. Even though we entered new contract later, i don't think we can claim the full hire of the idle period from contract termination until new contract signed. Because the condition of day rate is the 24hrs employment of vessel. I suppose we may get some compensation as profits as if the charter part was not terminated.

pleasure to hear yours.

艨艟剑客

4# Patricklee

Hi Patricklee,

I think it will be a matter of evidence and a matter of fact. The basic legal position is that you can claim damages against the owner, but you must well prove what damages you actually suffered. This may be a difficult task for claiming profits, but I cannot say it will never succeed. If you have strong and full evidence to show what kind of profits you lost and will lose, and that such loss is or ought to be within owner's knowledge, then your claim will become possible.

Only for your reference.

Good Luck.