Glencore Energy UK Ltd v NIS J S C Novi Sad [2023] EWHC 370 (Comm) - King's Bench Division, Commercial Court (Sean O'Sullivan KC, sitting as a Deputy High Court Judge) - 23 February 2023

Shipping - Delivery of defective cargo - Settlement agreement - Construction of terms as to responsibility for storage costs - Obligation to negotiate in good faith

On 24 January 2019 Glencore and NIS entered into a sale contract, by which Glencore agreed to sell and NIS agreed to buy a total of 1,100,000 mt (+/- 20 per cent in NIS's option) Export Blend crude oil of KBT quality, for delivery at Omisalj, Croatia. The oil came from Iraq and was exported via the Kirkuk-Ceyhan oil pipeline and loaded into tankers at Ceyhan in Turkey. It was to be delivered at Omisalj in parcels of 80,000 to 85,000 mt +/- 10 per cent in Glencore's option.