I Introduction

The agreed charter duration indicates the period of time for which the charterer is entitled to use the ship within agreed trading limits in consideration of payment of hire. Under the charter duration term, the charterer impliedly promises that the ship will be redelivered to the shipowner at the end of the period. Due to economic downturns and the surplus of ship tonnages in the shipping industry and the consequent impact these have had on charter rates, early redelivery of the vessel by charterers has become a common occur-rence in the chartering practice. This situation clearly causes economic problems from the shipowner’s perspective. In addition, it burdens the shipowner with a very painful litigation process. However, it does at least provide a good opportunity for the law to show a further development in the context of repudiation of contracts.