Taking on the role of an owner and a charterer in a hypothetical fixture discussion, Alexandra Couvadelli and Alex McCue discuss the implications of incorporating the BIMCO EEXI clause into the charterparty.
The outbreak of war in Ukraine on 24th February, 2022, and the subsequent closure of Ukraine’s Black Sea ports, caused great disruption to Ukrainian grain trade. Not only were ships unable to call at Ukraine’s ports, but ships that were at those ports when the conflict began were trapped.
Contracts for the sale or hire of a ship will almost always specify a place of delivery which the ship has to reach before she can be sold or go on-hire. But what if circumstances change so that it becomes impossible for the ship to reach the designated delivery place? Some contracts provide a mechanism to deal with this problem, but even then disputes can still arise.
The current state of the market has resulted in an increased focus on the sale and purchase of second-hand ships. These transactions can, however, be fraught with potential pitfalls for both buyer and seller alike.