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'''Summary'''
In this case the Court held that, where the evidence pointed to the vessel having slow steamed, arbitrators were entitled to hold that the Owners were in breach of their obligation to proceed with the utmost despatch and that the vessel was off-hire.
This Case Note is based on a note by Neil Henderson , a barrister at Stone Chambers, Gray’s Inn, London, and Tom Burdass, an associate solicitor with the London firm of Campbell Johnston Clark, London.
'''The Facts'''
The Pearl C is a potentially important decision in that it identifies the performance warranty in the vessel’s description as the relevant yardstick against which the slow-steaming can be measured. The Court approved the approach taken by the Tribunal whereby they decided that deliberate slow steaming was the only reasonable explanation in the absence of any obvious mechanical problem, adverse weather or other reason for the slow performance of the vessel.
In the circumstances where: (i) where the absence of a good explanation for poor performance may be sufficient to establish a claim for breach of clause 8 or a claim for off-hire and (ii) the general prevalence of slow-steaming, the decision of The Pearl C indicates that an owner who chose to steam more slowly for commercial or other will not be able to hide behind a performance warranty which applied only upon delivery.
What should such an owner do to avoid such claims?
As a result of the incidence of slow-steaming in the market, BIMCO has developed standard form slow-steaming clauses for both time and voyage charterparties. Both clauses provide owners with a two-fold protection: an express recognition that slow-steaming in accordance with orders (whether given by charterers or owners) will not amount to a breach of the utmost/due dispatch obligation; and an obligation on the charterer to ensure that the terms of bills of lading permit slow-steaming and that charterers will indemnify owners for liabilities arising from claims for breach of the obligation to proceed with utmost and/or due dispatch.
