Insights

RAINY SKY vs Kookmin Bank The Association’s Member entered into shipbuilding contracts with the JINSE Shipbuilding Co., Korea for the construction of 6 ships. As is normal practice, refund guarantees were provided to secure the pre-delivery instalments.

Hot on the heels of the Singapore F1 Grand Prix, on 28th September, 2011 the UK Defence Club co-hosted a seminar and cocktail reception at the Conrad Hotel for Members, brokers and other guests from the local shipping community. 

A repudiatory breach of a charterparty allows the innocent party to terminate the contract and claim damages. However, quantifying such damages can give rise to significant difficulties. This is especially true for a time charter for an extended period and when the repudiation takes place early in the contract. A recent arbitration appeal in Glory Wealth Shipping v Korea Line Corporation [2011] EWHC 1819 has helped define the manner in which such damages can be assessed.

In 2001, the Managers implemented their Value for Money (“VfM”) programme, which was introduced to ensure “best practice” was applied to claims handling services, both by the Managers and by third party suppliers. A further aim of the programme was to identify ways of improving and increasing the cost effectiveness of those services.

Many Members will have experienced the consequences of a counterparty entering into creditor protection schemes that are in place in the vast majority of jurisdictions.