Charter cancellation and dispute arising at the Danube ports of Ukraine and before entering the Sulina Canal

Charter cancellation and dispute arising at the Danube ports of Ukraine and before entering the Sulina Canal

From the very beginning of hostilities in Ukraine, in Interlegal shipping practice, the number of requests regarding settlement of disputes between Charterers and Shipowners has significantly increased due to Shipowners’ cancellation of Charter Parties that involve a voyage from the Danube ports of Ukraine.

For example, there were cases where a Voyage Charter involves cargo transportation by vessel from Reni/Izmail (Ukraine) to foreign ports. In one of the current projects, such a vessel arrived at anchorage before entering the Sulina Canal, but soon, even without starting to move towards Reni, the Shipowner canceled the Charter Party, referring to the worsening situation in Ukraine.

In another dispute, without providing laycan for the vessel, as specified by the Charter Party, the Shipowner canceled the voyage, arguing its position by the fact that the crew feared to go to Ukraine due to active hostilities and referring to force majeure clause in the Charter Party, the applicability whereof was soon refuted.

In several disputes, such Shipowners’ decisions did not contain any arguments at all or were directly related to the growing freight rates in this direction.

All these cases contain different clauses in Charter Parties, different applicable law, different reasons for cancellation, and, accordingly, different rights and obligations of the parties; however, the subject of dispute remains unchanged and is the same: unilateral cancellation of the Charter Party by the Shipowner.

In some cases, Interlegal lawyers have already succeeded in providing legal assistance to the Clients and settlement of disputes between the parties by commercial way;  in other cases they are still helping the Clients to understand the current situation, to clarify their rights and obligations and to hold negotiations with counteragents.

If you face a similar situation, please do not hesitate to contact Interlegal – it will make profit both for you and for your business.

Please contact Mykola Kozachenko in this respect.