S.M.A. Award No. 1409

N.Y.P.E. Time Charter Form - Head Charter for 12/15 months - Subcharter on ame terms for single trip - Trading areas within I.W.L. in both charter-parties but excluded several named countries - Special additional clause (in both charter-parties) provided non-payment of hire if vessel boycotted/blacklisted, except if ITF connected - Vessel ordered to load for range not excluded - Owners refused performance on grounds of risk of ITF intervention

The question for the sole arbitrator to determine was whether under the terms of head charter-party, owner was entitled to order vessel not to load a cargo in U.S.A. for Antwerp-Hamburg range on grounds that the ship, being described as non ITF affiliated risked boycott upon arrival at Antwerp. Evidence was produced that some other non ITF vessels had encountered problems and resulting heavy financial losses at Antwerp - also evidence that other non ITF vessels had suffered none. Owner contended that if execution of a contract imposes such tremendous hardship or enormous financial burden on one of the parties based on unforeseen events, that party has the right to be let out of the contract. Owner also contended that if the vessel performs the voyage, owner is entitled to indemnification from charterer for all such expenses based upon the knowledge of charterer of the ITF limitation when it executed a sub-charter exposing owner to enhanced liabilities on performance.