Cover Story

How Far Will Owners Be Responsible for Their Vessels’ Underperformance?

It is common for charterparties to have performance warranties to ensure that vessels will not underperform during the term of the contract. Nevertheless, vessels sometimes have to operate under unfavourable conditions which may make it difficult for their owners to perform the charterparty up to the specifications warranted. Such underperformance may constitute a breach of the charterparty, in which the owners will be liable to pay damages to the time charterers, even when it is a result of the Owner’s compliance with the time-charterers’ instructions...

Shipping News Highlights

• What could Brexit mean for the shipping industry?
• Dynagas in landmark deal for two regas vessels in China
• Hong Kong eyes co-operation with Greece in maritime service cluster
• Tribunal rules against China’s claims in the South China Sea

Recent Cases Highlights

• NYK Bulkship (Altantic) NV v Cargill International SA (The “Global Santosh”)
• FSL-9 Pte Ltd v Norwegian Hull Club (The “FSL New York”)
• Neon Shipping Inc v Foreign Economic & Technical Corporation of China and Another

Shipping Q & A

What is a Limitation Fund?

A ship owner or other person may limit their liability for claims related to a ship or other properties by constituting a limitation fund in accordance with Order 75 of the Rules of the High Court, which is a right granted under the Convention on Limitation of Liability for Maritime Claims 1976. It should be noted that pursuant to section 12 of the Merchant Shipping (Limitation of Ship owners Liability) Ordinance, provisions in the Convention have the force of law in Hong Kong...

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