Vague terms remain in speed and consumption clauses

Prokopios Krikris, charterparties claims expert, takes a look at the use of a performance clause

Performance claims continue to be an area of dispute, with complex factual or legal issues being resolved amicably or referred to arbitration in recent decades. The parties’ perspective incorporates a suitably worded performance clause in the charterparty to safeguard their conflicting interests. Usually, the performance clause spells out the benchmark conditions against which the vessel’s performance is to be measured.