Question
Suppose a shipowner placed its bulk carrier in the employment of a charterer under a time charter using the BIMCO GENCON time charterparty form. The
Suppose a shipowner placed its bulk carrier in the employment of a charterer under a time charter using the BIMCO GENCON time charterparty form. The charter period is two years and the rate of hire is $15,000 per day. After one year of successful operation, the charterer ordered the shipmaster to proceed on a route from Norfolk, Virginia, to Buenos Aires, Argentina. The shipmaster followed the orders and proceeded towards Argentina, but encountered rough weather in the Caribbean Sea. Due to the weather, the shipmaster scrapped the hull on shoals near the Bahamas, which disabled one of the vessel's propellers. Although the vessel was still able to operate, the shipmaster diverted the vessel to the nearestport to repair the propeller, which delayed the voyage for three weeks.
The charterparty includes an off-hire clause, which reads in relevant part as follows:
...in the event of the loss of time from deficiency of men or stores, fire, breakdown or damage to hull, machinery or equipment, grounding, accidents to the ship or cargo, or any other similar cause preventing the full working of the vessel, the payment of hire shall cease for the time thereby lost...
Using this fact pattern,answer bothA and B in a few short sentences per question.
A. From the perspective of the charterer, what is the best argument that the charterer does not have to pay hire during the delay?
B. From the perspective of the shipowner, what is the best argument that the charterer must continue to pay hire during the delay?
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