Issue 5, 2011 - The calculation of damages when no available market


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.