Damages claimable when charterer cuts rate

Shipowners’ Club has published a blog on the legal resources available to members whose charterers break contract on the rate that they are willing to pay.

Helen McCormick Associate Director Claims & Legal (CTRL) noted that the usual ‘rule of thumb’ measure of damages for a charterer’s repudiatory breach of a charterparty is the difference between the hire that the owner would have earned under the charterparty and the hire that the owner would earn from a reasonably similar replacement fixture on an available market, for the balance of the period. The full blog, with examples and further possible strategies, can be read at: https://www.shipownersclub.com/charterer-has-threatened-to-cut-charter-rate/