{"id":10077,"date":"2011-06-29T09:16:56","date_gmt":"2011-06-29T09:16:56","guid":{"rendered":"http:\/\/192.168.1.14\/index.php\/2011\/06\/29\/failure-to-pay-hire-timely-and-vessel-withdrawal\/"},"modified":"2025-09-01T01:21:52","modified_gmt":"2025-08-31T17:21:52","slug":"failure-to-pay-hire-timely-and-vessel-withdrawal","status":"publish","type":"post","link":"https:\/\/andrewliu.com.hk\/zh\/failure-to-pay-hire-timely-and-vessel-withdrawal\/","title":{"rendered":"Failure to pay hire timely and vessel withdrawal"},"content":{"rendered":"<p><span style=\"text-align: justify;\">&nbsp;<\/span><img decoding=\"async\" class=\"size-full wp-image-9071\" src=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2010\/06\/pdf.png\" width=\"16\" height=\"16\" alt=\"pdf\" style=\"padding: 0px; outline: 0px; text-align: justify;\" \/><span style=\"text-align: justify;\">&nbsp;<\/span><a href=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2011\/06\/B130_ALCO-Circular-20110020-Failure-to-pay-hire-timely-and-vessel-withdrawal.pdf\" target=\"_blank\" style=\"padding: 0px; border: 0px; outline: 0px; text-align: justify; line-height: 24px;\">ENG<\/a>&nbsp; &nbsp;<img decoding=\"async\" class=\"size-full wp-image-9071\" src=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2010\/06\/pdf.png\" width=\"16\" height=\"16\" alt=\"pdf\" style=\"padding: 0px; outline: 0px; text-align: justify;\" \/><span style=\"text-align: justify;\">&nbsp;<\/span><a href=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2011\/06\/B130_ALCO-Circular-20110020-Failure-to-pay-hire-timely-and-vessel-withdrawal-chi.pdf\" target=\"_blank\" style=\"padding: 0px; border: 0px; outline: 0px; text-align: justify; line-height: 24px;\">\u4e2d\u6587<\/a><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">In the recent shipping market downturn, many shipowners have faced, are facing or will face a situation where the time charterers fail to pay hire timely.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Cl. 5 NYPE 1946 provides &#8220;&#8230;.failing the punctual and regular payment of hire&#8230;owners shall be at liberty to withdraw the vessel&#8230;without prejudice to any claim they have on the charterers.&#8221;<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">In many situations especially when it is now apparent the freight market will not likely improve in the shorter term, the charterers are more concerned about not continuing their obligation to pay hire for the balance of the charter period agreed at a substantially higher hire rate than the current market hire, even though they may be willing to pay outstanding hire installments already due.It is very important for owners to be aware before they consider to invoke Cl. 5 of NYPE, they will not have an automatic legal right to claim for future losses which is usually the agreed hire rate to the current market hire rate, with credit given to charterers for the substitute fixtures.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">In English law, future losses are only claimable if the failure to pay hire is a repudiatory breach. Many owners would consider serving a warning notice to charterer as may be required under the charterparty that if hire is not received during this grace period the owner will invoke Cl. 5 and withdraw the vessel and claim for future losses.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Not many owners are aware that this course of action will only enable them to claim past outstanding hire installments but NOT the future losses.It is important to know that future losses can only be recovered if the charterer repudiates the contract. The charterer will only be taken to have repudiated the contract where his words or conduct show a clear intention that he will no longer be bound by the contract. Therefore where the charterer has failed to pay one hire installment timely this will NOT amount to a repudiation. There is no legal definition on the number of failures to pay hire installments which would be necessary to amount to a repudiation and every case is considered on its own merits.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">The same legal principle applies to a COA contract. Zodiac v Fortescue Metals was a case which occurred during the financial crisis in 2008 where the charterers under a COA were unable to perform further voyages after the first five voyages had been completed. Charterers advised owners they were not able to fulfill the future freight commitments and requested a suspension of the contract. There were several exchanges between owners and charterers whereupon the owners declared the charterers&#8217; communication and conduct amounted to a repudiation which they were accepting and hence the owners cancelled the contract and claimed damages for future losses. Charterers argued their exchanges were not repudiatory and alleged the owners themselves were in repudiatory breach by terminating the contract.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Although in this case it was held a particular conversation between owners and charterers amounted to a repudiatory breach by charterers, it is clear that a breach by charterers in failing to perform future shipments does not automatically amount to a repudiatory breach.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Should you have any enquiry, please feel free to contact with us.<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">See attached file :&nbsp;ALCO Circular 20110020 Failure to pay hire timely and vessel withdrawal.pdf<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">&nbsp;<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\"><span style=\"font-size: 14pt; color: #022469;\"><strong>\u672a\u6309\u65f6\u652f\u4ed8\u79df\u91d1\u4e0e\u64a4\u8239<\/strong><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px;\"><span style=\"padding: 0px; border: 0px; outline: 0px; text-align: justify;\">\u5728\u76ee\u524d\u822a\u8fd0\u5e02\u573a\u6574\u4f53\u4f4e\u8ff7\u7684\u72b6\u6001\u4e0b\uff0c\u5f88\u591a\u8239\u4e1c\u90fd\u66fe\u7ecf\uff0c\u6b63\u5728\u6216\u8005\u5c06\u8981\u9762\u5bf9\u671f\u79df\u79df\u5bb6\u4e0d\u80fd\u6309\u65f6\u652f\u4ed8\u79df\u91d1\u7684\u60c5\u51b5\u3002<\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">NYPE1946\u7b2c5\u6761\u89c4\u5b9a&#8221;&#8230;.\u79df\u5bb6\u5982\u679c\u6ca1\u6709\u5b9a\u671f\u51c6\u65f6\u652f\u4ed8\u79df\u91d1\uff0c\u8239\u4e1c\u6709\u6743\u64a4\u8239\uff0c\u64a4\u8239\u4e0d\u5f71\u54cd\u8239\u4e1c\u5411\u79df\u5bb6\u63d0\u8d77\u7d22\u8d54\u7684\u6743\u5229\u3002&#8221;<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u8003\u8651\u5230\u77ed\u671f\u5185\u6d77\u8fd0\u8fd0\u8d39\u5e02\u573a\u4e0d\u53ef\u80fd\u6709\u660e\u663e\u6539\u5584\uff0c\u8bb8\u591a\u79df\u5bb6\u5373\u4f7f\u613f\u610f\u5982\u7ea6\u652f\u4ed8\u5df2\u7ecf\u5230\u671f\u7684\u90e8\u5206\u79df\u91d1\uff0c\u4e5f\u53ef\u80fd\u5728\u8003\u8651\u4e0d\u518d\u6267\u884c\u5269\u4f59\u7684\u79df\u671f\uff0c\u56e0\u4e3a\u5408\u540c\u79df\u91d1\u5f80\u5f80\u662f\u8fdc\u9ad8\u4e8e\u73b0\u5728\u7684\u5e02\u573a\u79df\u91d1\u6c34\u5e73\u3002\u8239\u4e1c\u5728\u4f9d\u636eNYPE1946\u7b2c5\u6761\u89c4\u5b9a\u64a4\u8239\u524d\u5fc5\u987b\u8981\u6e05\u695a\uff0c\u8239\u4e1c\u64a4\u8239\u540e\u5e76\u4e00\u5b9a\u80fd\u81ea\u52a8\u4eab\u6709\u5411\u79df\u5bb6\u7d22\u8d54\u9884\u671f\u79df\u91d1\u635f\u5931\uff0c\u5373\u5408\u540c\u79df\u91d1\u8d85\u8fc7\u5e02\u573a\u79df\u91d1\u7684\u90a3\u4e00\u90e8\u5206\u635f\u5931\u7684\u6743\u5229\u3002<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u6309\u7167\u82f1\u56fd\u6cd5\u7684\u89c4\u5b9a\uff0c\u53ea\u6709\u672a\u6309\u671f\u652f\u4ed8\u79df\u91d1\u5df2\u7ecf\u6784\u6210\u5b9e\u8d28\u6027\u8fdd\u7ea6\uff08Repudiatory breach\uff09\u7684\u60c5\u51b5\u4e0b\uff0c\u8239\u4e1c\u624d\u6709\u6743\u7d22\u8d54\u9884\u671f\u79df\u91d1\u635f\u5931\u3002\u8bb8\u591a\u8239\u4e1c\u53ef\u80fd\u4f1a\u6309\u7167\u79df\u7ea6\u7684\u89c4\u5b9a\u5411\u79df\u5bb6\u53d1\u51fa\u8b66\u793a\u6587\u4ef6\u79f0\uff0c\u5982\u679c\u79df\u5bb6\u5728\u89c4\u5b9a\u7684\u65f6\u95f4\u5185\u4ecd\u672a\u652f\u4ed8\u5230\u671f\u7684\u79df\u91d1\uff0c\u8239\u4e1c\u4f1a\u4f9d\u636eNYPE1946\u7b2c5\u6761\u7684\u89c4\u5b9a\u64a4\u8239\uff0c\u5e76\u5411\u79df\u5bb6\u7d22\u8d54\u9884\u671f\u79df\u91d1\u635f\u5931\u3002\u5f88\u591a\u8239\u4e1c\u5e76\u6ca1\u6709\u8ba4\u8bc6\u5230\uff0c\u901a\u8fc7\u7c7b\u4f3c\u7684\u8b66\u793a\u6587\u4ef6\uff0c\u4ed6\u4eec\u53ea\u80fd\u4f9d\u6cd5\u5411\u79df\u5bb6\u7d22\u8d54\u90a3\u4e9b\u5df2\u7ecf\u5230\u671f\u672a\u652f\u4ed8\u7684\u79df\u91d1\uff0c\u800c\u5e76\u4e0d\u5305\u62ec\u5c1a\u672a\u5230\u671f\u7684\u79df\u91d1\u635f\u5931\u3002<\/p>\n<p style=\"border: 0px; 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Cl. 5 NYPE 1946 provides &#8220;&#8230;.failing the punctual and regular payment of hire&#8230;owners shall be at liberty to withdraw the vessel&#8230;without prejudice to any claim they have [&hellip;]<\/p>","protected":false},"author":3,"featured_media":9071,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[125],"class_list":["post-10077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-circulars","tag-english"],"_links":{"self":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/comments?post=10077"}],"version-history":[{"count":1,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10077\/revisions"}],"predecessor-version":[{"id":20594,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10077\/revisions\/20594"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/media\/9071"}],"wp:attachment":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/media?parent=10077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/categories?post=10077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/tags?post=10077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}