Sue Khumalo is the director of African Seas Pty Ltd (AS), a fleet managing company based...
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Sue Khumalo is the director of African Seas Pty Ltd (AS), a fleet managing company based in South Africa with branches overseas. AS has its own fleet of about 15 vessels but from time-to-time charters vessels to supplement its operational requirements through hiring vessels for specific voyages or for a defined period of time. AS entered into a charterparty as charterers with Multicargo International PPL (MI). MI are the owners of the my "Dictator" (the vessel). AS and MI signed a charterparty on 30 June 2022 in respect of the vessel. At the time of signing the charter, the vessel was trading on the route between the Far East and South America, loading sugar to India and rice to Brazil on its return voyage. Although not specifically discussed, the general idea was that owners would load in Brazil and sail for 10 days to South Africa to deliver the vessel. However, the clear agreement was that the vessel will arrive in Durban between 15 and 18 August and that the charterer's right to cancel the charter will be on 20 August. The charterparty also recorded, amongst other things, that "the vessel was currently discharging or about to discharge containers in Chennai, India to load to Santos, Brazil...". However, in India the vessel was delayed in concluding its discharge operations due to a stevedores' strike which was reported on the morning following the signing of the charterparty. The vessel only left India on 15 July and as a result, the vessel lost its preferential berth slot when it arrived at the port of Santos. The vessel was eventually allocated a berth on 10 August to discharge its cargo. The vessel required another 5 days to discharge, load and then sail to South Africa. You are the Regional Manager: Logistics at AS. Sue wants to know from you what she ought to do because "... we have paid handsomely for warehousing, security and labour as it is already. We can simply not afford any further delays. The freight rates have doubled in the last three weeks and I am not prepared to carry any further costs..." Advise Ms Khumalo on the issues below. Briefly refer to cases and other authorities. Focus on the principle of the case. Avoid long factual narratives. Narrate relevant facts briefly only where necessary. SPECIFIC TASKS: The first part requires that you advise her/ AS on what she must do currently. The second part is directed at what she must do to avoid the same issues in the future when she charters the vessels out (acting as owner). Question 1 She wants to cancel the charter on the basis that "it is clear that the vessel will not reach Durban before 25 August and the warehousing contract expires on 20 August." Advise her about her right to invoke the cancelling clause. Sue Khumalo is the director of African Seas Pty Ltd (AS), a fleet managing company based in South Africa with branches overseas. AS has its own fleet of about 15 vessels but from time-to-time charters vessels to supplement its operational requirements through hiring vessels for specific voyages or for a defined period of time. AS entered into a charterparty as charterers with Multicargo International PPL (MI). MI are the owners of the my "Dictator" (the vessel). AS and MI signed a charterparty on 30 June 2022 in respect of the vessel. At the time of signing the charter, the vessel was trading on the route between the Far East and South America, loading sugar to India and rice to Brazil on its return voyage. Although not specifically discussed, the general idea was that owners would load in Brazil and sail for 10 days to South Africa to deliver the vessel. However, the clear agreement was that the vessel will arrive in Durban between 15 and 18 August and that the charterer's right to cancel the charter will be on 20 August. The charterparty also recorded, amongst other things, that "the vessel was currently discharging or about to discharge containers in Chennai, India to load to Santos, Brazil...". However, in India the vessel was delayed in concluding its discharge operations due to a stevedores' strike which was reported on the morning following the signing of the charterparty. The vessel only left India on 15 July and as a result, the vessel lost its preferential berth slot when it arrived at the port of Santos. The vessel was eventually allocated a berth on 10 August to discharge its cargo. The vessel required another 5 days to discharge, load and then sail to South Africa. You are the Regional Manager: Logistics at AS. Sue wants to know from you what she ought to do because "... we have paid handsomely for warehousing, security and labour as it is already. We can simply not afford any further delays. The freight rates have doubled in the last three weeks and I am not prepared to carry any further costs..." Advise Ms Khumalo on the issues below. Briefly refer to cases and other authorities. Focus on the principle of the case. Avoid long factual narratives. Narrate relevant facts briefly only where necessary. SPECIFIC TASKS: The first part requires that you advise her/ AS on what she must do currently. The second part is directed at what she must do to avoid the same issues in the future when she charters the vessels out (acting as owner). Question 1 She wants to cancel the charter on the basis that "it is clear that the vessel will not reach Durban before 25 August and the warehousing contract expires on 20 August." Advise her about her right to invoke the cancelling clause.
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Answer Under the terms of the charterparty AS has the right to cancel the charter if the vessel has ... View the full answer
Related Book For
Principles of Information Systems
ISBN: 978-1305971776
13th edition
Authors: Ralph Stair, George Reynolds
Posted Date:
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