Lloyd's Maritime and Commercial Law Quarterly
SHIPOWNERS’ DUTY IMMEDIATELY TO OBEY TIME CHARTERERS’ ORDERS
The Houda
In Kuwait Petroleum Corporation v. I & D Oil Carriers Ltd. (The Houda)1 two related points arose for decision. First, where there is genuine doubt as to whether the orders purportedly given by time charterers do, indeed, come from them, is the vessel off-hire for the time spent while the doubt is being resolved? Secondly, is an order from time charterers directing the master to discharge other than against presentation of the bill of lading an order which the master is bound to obey? Philips, J., decided both issues in the charterers’ favour. His answer to the first was based on a certain logic but seems to be short on commercial reality. His answer to the second appears to cut across some first principles of maritime law. Whether right or wrong, the judgment will provoke discussion among shipping lawyers and much contentment in the breasts of charterers.
The Houda was time chartered to the plaintiffs on a Shelltime 4 form by her owners, the defendants. The charterparty provided, inter alia, that charterers should give sailing orders, that the master should be under their directions and that in the event of loss of time due to refusal to obey orders, the vessel was to be off-
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