Process of Deduction | Case by Case (Ep. 56)

Case by Case – episode 56 – Process of Deduction. This week Luke and Calum discuss the English High Court case Fastfreight Pte Ltd v Bulk Trident Shipping Ltd (Re Arbitration Act 1996) [2023] EWHC 105 (Comm) (24 January 2023).
Off-hire. An essential concept in time charters.
What if parties make the payment of hire absolute, in the sense that charterers are unable to deduct off-hire claims from hire payments during the charter (with off-hire claims to be handled later)? That’s possible, right? Did the parties do that here?
Can one word – „deduction“ – change the meaning of a clause from what seems pretty clear was the intention of the parties?
Isn’t this all just a question of security? As in, who is in the money while a dispute plays out…
Interestingly, the context is a changing market dynamic in negotiating charterparties between owners and charterers.
It’s always good to go back to first principles. This is a great case to do just that.
Hope you enjoy ! Cheers, Calum and Luke.