TRANSPETROL MARITIME SERVICES LTD v SJB (MARINE ENERGY) BV (THE "ROWAN")

[2012] EWCA Civ 198, Court of Appeal, Civil Division, Lord Justice Longmore, Lord Justice Davis and Sir David Keene, 29 February 2012

Charterparty (voyage) - Oil companies' approval - Incorporation of Vitol Terms of 1999 - Whether clause 18 of Vitol Terms is substituted - Meaning of expression "to the best of owners' knowledge" - Whether owners were in breach of charter

Owners of the vessel Rowan (Transpetrol) and charterers (SJB) entered into a voyage charterparty which incorporated Vitol Terms of 1999. The terms of the charterparty were to be found in a recap email which stated under the heading "Vessel Info" that the vessel was to be approved by four named oil companies to the best of the owners' knowledge and without owners' guarantee ("TBOOK WOG"). In the recap email, next to the standard clause 18 of the Vitol Terms (Oil Company Approvals Clause) it was stated that the vessel was approved by five oil companies to the best of owners' knowledge ("TBOOK"). After the vessel sailed on her voyage a class survey took place which revealed low suction of sea chest valve. She was later on inspected by Shell with whom the charterer made an agreement to sell the cargo. Shell later on decided not to buy the cargo and said that the vessel was not acceptable. Charterers claimed against the owners on the ground that they had no option but to sell the cargo elsewhere and claimed the price difference by way of damages and that the vessel was not fit to be approved by the oil companies identified in the recap. The claim was upheld and the owners appealed.