02-11-2015 /

The Hong Kong Competition Ordinance (Cap. 619) (“Ordinance”) was gazetted on 14 June 2012 and will commence on 14 December 2015. The Hong Kong Competition Commission (“Commission”) published the Revised Draft Guidelines (“Guidelines”) to the Ordinance in July 2015. We summarise below the rules of the Ordinance and then consider their potential impact on the shipping sector.

02-11-2015 / Insurance, Maritime

Involnert Management Inc v. Aprilgrange Ltd & others (Galatea) [2015] EWHC 2225 (Comm) In this Commercial Court judgment, Underwriters were held to have validly avoided a policy of insurance in respect of a Riva 115 superyacht (Galatea) following the Constructive Total Loss of the Yacht by fire in Athens in December 2011 due to the non-disclosure of substantial over-valuation.

02-11-2015 / Maritime

Louis Dreyfus Commodities Suisse SA v. MT Maritime Management BV (MTM Hong Kong). [2015] EWHC 2505 (Comm) The fundamental principle governing the assessment of damages under English law is the compensatory principle, i.e. that damages should compensate the victim of the breach for the loss of their contractual bargain. In applying the compensatory principle in this case, the English Court departed from the normally used measure of damages where the charterers wrongfully terminate a voyage charter. In doing so, it significantly increased the owners’ recovery.

02-11-2015 / Maritime

Sang Stone Hamoon Jonoub Co Ltd v. Baoyue Shipping Co Ltd (Bao Yue) [2015] EWHC 2288 (Comm). In circumstances where a cargo arrived at the discharge port and no bill of lading was presented, the Commercial Court has considered whether discharge into a warehouse by the Shipowner amounted to unlawful conversion of the cargo. The Court held that the claim for damages for conversion failed. The Claimant Shipper was ordered to reimburse the Shipowner for the storage charges and to surrender the original bill of lading to enable the sale of the cargo.

02-11-2015 / Maritime

Glencore International AG v. MSC Mediterranean Shipping Company SA and MSC Home Terminal NV (MSC Katrina) [2015] EWHC 1989 (Comm) The advance of modern technology is often seen as relentless and inevitable, with supporters of the most up-to-date practices citing advantages such as improved speed, reduced expense or superior ease of use for those involved. Processes within the shipping industry are, of course, no exception. This recent case examines the use of the Electronic Release System (“ERS”) at discharge ports and perhaps challenges the increasingly popular mantra that “newer equals better”.

02-11-2015 / Maritime

Expofruit SA & Ors v. Melville Services Inc & Anor (Africa Reefer) [2015] EWHC 1950 (Comm). The Commercial Court recently refused the Claimant’s application for a time extension for commencing arbitration in London, despite the Defendants having participated in Belgian court proceedings for the best part of three years before disputing the jurisdiction of the Belgian Court.

02-11-2015 / Maritime

Hellenic Petroleum Cyprus Limited v. Premier Maritime Limited (Navigas 1) [2015] EWHC 1894 (Comm) Parties should be very careful when negotiating an agreement to ensure that there are no misunderstandings as to whether a contract has been concluded or not. In this case, it was not clear whether the parties had concluded a long-term charter and therefore, it was not clear whether there was a valid arbitration agreement. That confusion meant that time and costs were wasted seeking an arbitration award only to have it set aside by the English Court.

02-11-2015 / Maritime

The UK’s Modern Slavery Act 2015 (“the Act”), which came into force on 31 July 2015, addresses the rise of new forms of slavery. These include imposing, as from October 2015, an obligation on companies with a turnover of over £36m to disclose what they are doing (or indeed not doing) to eradicate slavery within their supply chains. Shipowners with links to the UK may, therefore, need to review their anti-slavery and anti-trafficking policies and may be particularly affected as an industry, because in some circumstances the legislation provides for the forfeiture of vessels that have been used (or were intended to be used) for trafficking.

02-11-2015 / Maritime

Southport Success SA v. Tsingshan Holding Group Co Ltd (Anna Bo) [2015] EWHC 1974 (Comm). In the latest decision on the “hot topic” of anti-suit injunctions, the Commercial Court has taken the opportunity to provide further helpful clarification of the underlying basis of its powers to grant interim relief in the form of anti-suit injunctions, and discussed the scope of potential limitations to the Court’s powers to restrain parties from pursuing foreign proceedings.

02-11-2015 / Maritime

B.V Scheepswerf Damen Gorinchem v. The Marine Institute (Celtic Explorer) [2015] EWHC 1810 (Comm). This case is one of many to confirm that a successful challenge to an arbitration award on the ground of serious irregularity under s.68 of the Arbitration Act 1996 (the “Act”) is hard to achieve.