USEFUL ADVISE

Situation is following: I’m acting as ship broker, and following situation takes a place: we are chartered vessel, smoothly loaded, bs/l are singed, but vessel is not able to leave load port due to weather conditions (storm wind, one week); owners claimed Chrtrs that they still haven’t paid freight and breaching charter party terms, but we, Chrtrs, sure that their obligations for freight payment to be performed before start of discharging, and decline all claims. Please clarify who is right, and if owners have right detain vessel by the way to discharging port. Fixture recap is attached.

And in a minutes :

Thank you. I’ve reviewed your recap.

1) Kind of contract

- Voyage charter (clean fixture recap states “Otherwise as per GENCON 94 CP …,” which is a voyage form).

2) Underlying pro forma

- GENCON 1994 is incorporated “logically amended/altered as above.”

3) Applicable law, forum, and cargo regimes

- Governing law/arbitration: English law; London arbitration under LMAA Terms; General Average under York-Antwerp Rules 1974 as amended 1994.

- Cargo liability regime: Not specified in the recap (no Clause Paramount shown). Any Hague/Hague-Visby/Hamburg/Rotterdam application would arise under the bills of lading and any mandatory local law, not the charter. This freight dispute is under the charter and thus under English law per the above.

4) Which clauses apply and how responsibility is allocated (based strictly on the recap text)

- Freight due: “FRT TO BE PAID … 100 [pct] w/i 4 banking days after signing Bs/L but in any case BBB [before breaking bulk].” This sets an earlier deadline of 4 banking days after B/L signing, with an ultimate backstop of BBB. If 4 banking days have elapsed since B/L signature and freight remains unpaid, Charterers are in breach even if discharge has not started. If fewer than 4 banking days have elapsed, Charterers are still within time.

- B/L marking and control: B/Ls to be marked “freight prepaid” or “freight payable as per C/P” at Charterers’ option. If Charterers request “freight prepaid” B/L, those B/Ls are to be kept under agents’ custody until Owners receive the freight remittance (i.e., Owners’ leverage is to withhold release of “freight prepaid” B/Ls until funds are received).

- Sailing and nomination: The exact discharging port is to be nominated by Charterers within 48 hours SSHINC after sailing from the load port. There is no express “no sail until freight remitted” clause in the recap.

- Time at discharge if cargo price unpaid: If the vessel arrives/tenders NOR at discharge and Charterers prohibit discharge “since cargo is not paid,” the lost time counts as laytime or demurrage. This relates to cargo-price/receivership issues, not charter freight.

On the specific question “who is right” and “can Owners detain the vessel at the load port due to unpaid freight?”:

- Based on the recap alone, Owners bargained for payment within 4 banking days after B/L signing, with a long-stop of BBB. The clause does not tie payment to “start of discharging only”; rather, it can fall due much earlier (i.e., 4 banking days post–B/L signing).

- The recap provides no express right for Owners to refuse to sail from the load port pending freight. Owners’ express pre-departure leverage in the text you provided is the right to keep “freight prepaid” B/Ls under agents’ custody until receipt of remittance.

- Therefore:

  - If 4 banking days have already elapsed since B/L signing without payment, Owners are correct that Charterers are in breach of the payment clause; they can insist on freight before discharge and rely on the contractual remedies available, but the recap does not itself grant a stated right to detain the ship at the load port solely for non-payment.

  - If 4 banking days have not yet elapsed, Charterers are correct that they are not late; in that case, Owners’ claim of breach is unsupported by the payment clause as written.

5) Documents/data needed to complete the analysis (please provide)

- Date and time when each set of B/Ls was signed at load port.

- The banking calendar (to count “4 banking days”) and any bank holidays affecting those days.

- Proof of payment timing (value date, SWIFT MT103, or bank confirmation).

- Whether Charterers requested “freight prepaid” B/L, and whether B/Ls were released or held under agents’ custody.

- Any Owners’ formal notice/demand for freight and any correspondence reserving rights.

- Port of loading/discharge and the bills of lading terms (for any clause paramount; not essential to this freight-timing issue, but helpful context).

Your conclusion

- Payment trigger: 4 banking days after B/L signing, with a long-stop of BBB; not “only before start of discharge.” Who is “right” turns on whether the 4-banking-day window has already expired. The recap contains no express “no sail until freight paid” clause; Owners’ clear leverage before payment, if “freight prepaid” B/Ls were requested, is to keep those B/Ls under custody until funds are received.

Probability winning if in case of court (provisional, pending the dates)

- If 4 banking days elapsed pre-detention and no payment made: Owners’ position on breach of the freight clause is strong; Charterers’ argument that payment is only due “before discharge” is weak on the wording. High for Owners on breach of payment timing; remedy for detaining at load port would still depend on express terms, which are not shown in the recap.

- If 4 banking days have not elapsed: Charterers’ position is strong that there is no breach yet; Owners’ claim of breach would likely fail on the clear timing language.

Risks

- Interest/late payment and costs if the 4-banking-day deadline has passed.

- Operational knock-on: “After sailing” triggers the 48h window for discharge-port nomination; a prolonged weather delay does not change the freight due dates; ensure nomination obligations are tracked once the vessel actually sails.

- Documentary risk: If “freight prepaid” B/Ls were requested, the agent should not release them until Owners confirm receipt; any premature release could increase exposure.

Recommendation of compromise

- If within the 4-banking-day window: Send Owners a written timeline confirming the B/L signing date and the exact deadline; offer immediate payment scheduling and share bank SWIFT upon release to facilitate sailing. Ask Owners to proceed without insisting on pre-sailing payment, noting there is no such term in the recap.

- If the deadline has passed: Offer prompt payment plus interest (if any) and, if needed to avoid further delay, propose an escrow confirmation or a reputable bank undertaking while the value arrives. In return, ask Owners to proceed to sea as soon as weather permits and to refrain from further threats to detain at the load port (since the charter contains no express “no sail” right).

Recommendation for next step

- Immediately calculate the 4 banking days from the B/L signature time(s) accounting for bank holidays; circulate the computed deadline to all parties.

- If you are still within time, notify Owners in writing; if out of time, remit and share proof of value date without delay.

- Confirm whether “freight prepaid” B/Ls were requested and, if so, ensure agents maintain custody until Owners confirm receipt (or secure Owners’ written consent to release against proof).

Further support

- If you share the B/L issue date/time, bank proof, and any “freight prepaid” request, I can: compute the exact deadline; draft a short position note to Owners referencing the recap wording; and, if needed, prepare a without‑prejudice settlement note (payment plus interest/undertaking) aligned with English law/LMAA language.

This is general legal information, not individualized advice. For final decisions, consult counsel or your P&I Club.