Escaping the contracts

Jonathan Campbell, of Holman Fenwick Willan, considers the risk of getting out of shipbuilding contracts

Aquestion often asked by shipowners in this economic climate is to what extent they can legitimately walk away from orders of new buildings. Alternatively, prompted by a hope that the market will pick up in the future, many seek to delay the construction of the vessel. This also applies to buyers who have been unable to organise financing due to the decline in ship values.