S.M.A. Award No. 1374

Long Term Time Charter combined with equity agreement - Change of terms of equity at request of Charterer - Sale of ship free of Charter-Party - Charterer’s claim that sale of vessel does not terminate long term Time Charter

The essence of the dispute before the Panel concerned itself with a prospective sale of a vessel and the question of whether the sale could be made free of an existing 10-year time charter. As the vessel was rapidly approaching the conclusion of its voyage, and as the Owner’s contemplated sale was conditioned on the vessel being delivered “Charter free” after that voyage, a Panel was quickly assembled, urged to expedite the hearings and render a decision with the utmost of dispatch - the Panel’s ruling was given that same evening.