Freight

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this page was last time updated on: 09-Apr-2012

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Case Law

Dakin v Oxley (1864) 15 CBNS 646

Henriksens Rederi A/S THZ Rolimpex (The Brede) [1973] 2 Lloyd’s Rep. 333; [1973] 3 All ER 589

Aries Tanker Corporation v Total Transport Ltd (The Aries) [1977] 1 Lloyd’s Rep 334

Gunnstein A/S & Co K/S v Jensen, Krebs and Nielsen (The Alfa Nord) [1977] 2 Lloyd’s Rep 434

Cleobulos Shipping Co Ltd v Intertanker Ltd (The Cleon) [1983] 1 Lloyd’s Rep 586

Lakeport Navigation Co Panama SA v Anonima Petroli Italiana SpA (The Olympic Brilliance) [1982] 2 Lloyd’s Rep 205, CA

Colonial Bank (Now Bank of Boston Connecticut) v European Grain & Shipping Ltd. (The Dominique) [1989] 1 Lloyd’s Rep 431

Voyage Charterparty

Freight. Deduction from freight. General Principles

Excluding only instances when a lumpsum freight agreed, the amount paid by the charterers to the shipowners is always subject to delivered quantity of goods.

…according to the law of England, as a rule, freight is earned by the carriage and arrival of the goods ready to be delivered to the merchant, though they lie in a damaged state when they arrive. If the shipowner fails to carry the goods for the merchant to the destined port, the freight is not earned. If he carry part, but not the whole, no freight is payable in respect of the part not carried, and freight is in respect of the part carried unless the charterparty make the carriage of the whole a condition precedent to the earning of any freight

In accordance with the rule stated above, when the goods delivered in whole but in damaged state English law precludes any deduction from the freight and affords the injured party a remedy by cross-action only.

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