the charterers P&I club 
Claims
We have a team of 15 claims handlers in two offices handling claims for our clients.
When compared to overall scale of operation, our team is one of the largest in the P&I Market.
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Time Charter Trip – Cargo Claim
This case illustrates Charterer's exposure to an (implied) indemnity claim by Owners who are able to prove a loss as a result of complying with Charterer's orders. Equally it highlights the need to combat indemnity claims where there is merit to do so. This example explains how an Assured is able to rely on the Club and its external legal advisors to assess the need compromise on a shortage claim on the one hand and fight a personal injury claim on the other. Legal costs exceed USD 30,000 including indemnity costs received from Owners. The Claims Department invests some 20 hours in handling this claim.
Read More »Demurrage under a Voyage charter
This matter involves a Charterer (the Assured) attempting to recover a substantial claim for demurrage from his sub-charterer. The FD&D department of the Club is immediately instructed to provide a preliminary advice on how best protect the disponent owner’s position. Local correspondents, experts and US attorneys are also retained to advise and collect evidence in support of the Assured’s claim.
Read More »Failure to follow Charterer's orders under a Period Charter
This case highlights the exposure of a Charterer to an abusive Owner prepared to deviate from the contractual terms and to lien the cargo as security for an unwarranted claim in terms of quantum. It is only through the assistance of the Club’s experienced FD&D department and that of London solicitors retained by the Club in consultation with the Assured that swift steps are taken to obtain an injunction before the London High Court preventing the Owners from discharging the cargo in a port other than that shown on the bill of lading. The cost of solicitors and barristers (retained to lodge the Court application) amounts to USD 85,000 including the costs of supporting full blown arbitration proceedings. The FD&D claims department calculates more than 20 hours of work devoted to this dispute.
Read More »Frustration under a time charter
This case deals with the delicate legal English law principle of frustration where sound legal advice from the Club and English solicitors is paramount to avoid unpleasant consequences arising of a potential repudiatory breach for unlawful termination of contract. The advice received by the Assured after the ship is placed out of service for a long period of time allows him to eventually agree on a mutual termination with Owners which would otherwise have been unlikely. The solicitors’ costs amount to USD 10,000 with the Club’s defence department allocating some 8 hours to this case.
Read More »Cancellation of a Voyage Charter
A premature cancellation can place a party in what is called in English law anticipatory breach allowing the other party to claim damages which otherwise would not have arisen. It is not uncommon for a charterer to be tempted to terminate a voyage charter when realising the contracted vessel is unlikely to meet her laycan. This example offers an insight of the type of legal advice that a charterer can expect from the Club and its solicitors under these circumstances which in this case allowed them to conclude a satisfactory settlement. The Club’s defence department invested some 15 hours in the case whilst legal and correspondents’ costs reached USD 42,000.
Read More »Voyage Charter – Damage to Hull
There is often the perception that a very limited third party liability risk is attached to a voyage charterer. Whilst to some extent this is accurate, the reality is that the exposure could be substantial in the event of a claim typically for breach of a safe berth/port warranty or, as described in this example, for serious damage caused to the vessel by the stevedores or their equipment. In this case the Club is forced to put up security in respect of a substantial indemnity claim presented by Owners for damage to the ship caused by barges hired by the Assured in the cargo discharge process.
Read More »Time Charter Trip – Cargo Claim
This claim example illustrates the exposure of a time charterer to cargo claims in the first instance when trading with bills of lading on its own form as carriers. With the valuable assistance of Club correspondents and local surveyors, the Club is able to establish that the nature of the damage is salt water ingress through the hatch covers. Whilst the Club is forced to settle numerous cargo claims at the port of destination, the threat of a recourse action from Owners pursuant to the terms of the Inter Club Agreement allows the Assured to enter into a good settlement that includes a contribution to costs. The Club incurs USD 80,000 in legal and expert fees and computes some 35 hours of management time.
Read More »Period Time Charter – Damage to Hull Claim
The quality of bunkers stemmed by the vessel has always been a major concern to Charterers who are commonly required by contract to supply bunkers of a certain specification. This example highlights the exposure that a Charterer has to very significant claims for damage to engine caused by the use of off-spec bunkers which will include any detention time for repairs. A swift and coordinated team response lead by the claims department is considered critical when handling this type of casualties. In this case the immediate attendance of qualified experts and lawyers has been key to the Assured achieving a sensible settlement.
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