| Archives: July 2013

Award 1207 – Second Degree – C/P Gencon – Carriage of refrigerated lychees – Competence of CAMP – English law – Guarantee of maximum safe speed – Vessel delayed – Disponent owner’s liability (yes) – Falling price of fruit on arrival – Damage calculation. The charter-party included a guarantee of maximum safe speed without further detail. During her transit from Madagascar to Marseille, in particular while crossing the Mediterranean, the vessel slowed down and arrived late at port of discharge. Charterers claimed for the loss incurred by this late arrival on the basis of the falling price of lychees until the end of discharge across the whole cargo. The arbitrators confirmed the competence of CAMP and dismissed the estoppel rule advanced by the defendant, which relied on an award on the same facts previously being rendered void by the Court of Appeal. The arbitrators held that the disponent owner did not produce any evidence to demonstrate the cause of the vessel slowing down and was therefore liable. Applying English law, requiring that the injured party be put in the same position as if there had been no breach, they considered the vessel’s delay was not the sole cause of the drop in the price of lychees and assessed the amount of damages on the basis of the official market price and the sales potentially missed during the vessel’s delay.