SK Shipping Company Ltd v BB Energy (Asia) Ltd - QBD (Com Ct)(Aikens J) - 15 September 1999

Sale of gasoil FOB - Whether buyers entitled to demurrage in respect of delay in shipment - Whether buyers entitled to damages representing increased market price of goods as a result of breach by sellers in failing to load the goods within agreed dates

The claimants were the sellers of a cargo of gasoil to the defendant buyers. Under the sale contract the sellers were obliged to deliver the cargo FOB Nakhodka within the delivery period of 1 - 10 May 1996. In the event there was a delay in the shipment of the oil on board the vessel chartered by the buyers at a time when the price of the gasoil was rising between 2 May and 15 May 1996. The buyers claimed $135,317.54 contractual demurrage for the period 4 to 15 May (‘the demurrage issue’). The sellers claimed damages in the amount of $94,310.13 representing the increased market price of the gasoil between 6 May and 15 May, the date on which the vessel completed loading of the gasoil (‘the price issue’).