London Arbitration 19/15

Charterparty – Vessel under construction let out on long-term time charter – Charter providing for laycan to be “back-to-back” with shipbuilding contract – Charterers purporting to cancel charter prior to delivery – Whether cancellation lawful

The subject vessel was time-chartered for a period of 23 to 25 months with charterers’ option to extend. At the time of the charter the ship had not been constructed. The vessel to be chartered was to be either the subject vessel or a sister ship then under construction. In the event, the subject vessel was nominated.