NYK Bulkship (Atlantic) NV v Cargill International SA

Shipping – Charterparty. Under a time charterparty, the owner had chartered its vessel to the charterer. The owner brought arbitration proceedings seeking withheld hire in respect of a period when the vessel had been detained subject to an arrest order. The arbitrators dismissed the owner's claim and the owner appealed to the High Court. The judge held that the arbitrators had erred in their decision that the arrest of the vessel in question had not fallen within the proviso to the 'off-hire clause' contained in the charterparty. In the light of the court's ruling that the proviso in that clause had applied, the question of causation was remitted to the tribunal to determine. The Court of Appeal, Civil Division, upheld the judge's decision, albeit on a different construction of the proviso to the off-hire clause, and determined that the judge had been correct to remit the question of causation.

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