The Washington Trader was a giant oil tanker owned by the plaintiff, American Trading and Production Corporation.

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The Washington Trader was a giant oil tanker owned by the plaintiff, American Trading and Production Corporation. In March 1967, the defendant, Shell International Marine, Ltd., contracted for the ship to carry a load of oil from Texas to India. The total fee agreed upon was $417,327.36. No reference was made in the contract for the route to be taken; this was to be a decision of the shipping company. The route around Africa’s Cape of Good Hope was an acceptable route. However, the price was based on passage through the Suez Canal (the invoice contained a Suez Canal toll charge). The Washington Trader headed for the Mediterranean Sea and the Suez. When the ship reached Gibraltar, it was warned of possible violence in the Middle East. Nevertheless, it continued. Upon reaching the Suez Canal, the ship found the canal closed by the Arab-Israeli War. The ship turned back and took the long route around Africa, at an added cost of $131,978.44. It arrived in Bombay some 30 days later than originally expected. American Trading then billed Shell for the full amount. When Shell refused to pay, American Trading sued. American claimed that the war made it impossible to perform as originally agreed. Shell, it said, should pay the extra cost because otherwise Shell would be unjustly enriched. You decide. (American Trading and Production Corporation v. Shell International Marine, Ltd., 453 F.2d 939, 2d Cir.)

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