Bunker Arrest – post Res Cogitans Early Contract and Charterparty Review (Part 7 of Economic Crisis Series)
  • Bunker Arrest – post Res Cogitans Early Contract and Charterparty Review (Part 7 of Economic Crisis Series)

    Bunker Arrest – post Res Cogitans Early Contract and Charterparty Review (Part 7 of Economic Crisis Series)

    Bunker arrests   This is Part 7 of our series on how to deal with an economic crisis – a guide for international businesses.   In 2016, the Supreme Court handed down its judgment in the Res Cogitans, the leading case arising out of the OW Bunkers insolvency. That case had a profound effect on the shipping market, with many ship operators left with debts to the physical suppliers of the bunkers, and to OW Bunkers’ liquidators.    We are now entering the most serious economic downturn since that judgment. In that economic climate, it is fair to expect parties seeking security by ever more creative means, including an uptick in bunker arrests against time charterers. In the spirit of being prepared, we take a look at what the Res Cogitans means for bunker arrests.    In particular, in the Res Cogitans the Supreme Court held that where bunker supply agreements are made on credit terms, with a retention of title clause pending payment, title to the bunkers remained in the bunker supplier. We look at whether charterers can rely on that judgment to defeat the attachment – after all, if charterers don’t actually own the bunkers, how can the arrest succeed? Contact Calum, or your normal ZFZ, for more.

  • Shipowner’s Liens over Cargo Early Contract and Charterparty Review (Part 5 of Economic Crisis Series)

    Shipowner’s Liens over Cargo Early Contract and Charterparty Review (Part 5 of Economic Crisis Series)
    Shipowner’s lien over cargo.   Part 5 of our series on how to deal with an economic crisis – a guide for international businesses.   Luke Zadkovich unpacks the fundamental differences between the US and English approaches to shipowner’s liens over cargo.  This has been a hot topic for a few years now, most recently with the English liquidation of British Steel in 2019 and prior to that, the collapse Hanjin Shipping and others.   One of the unfortunate business realities of an economic crisis is that it typically results in more bankruptcies and insolvencies.  Edward Floyd discusses bankruptcy proceedings in detail later in this series.   In this talk, we assess what a shipowner can do to secure its payments under a charterparty or bill of lading through the exercise of its cargo lien rights and other measures.  Charterers/cargo interests will also be interested to navigate through these tricky scenarios.   ps. look out for the Athos 1 unsafe berth analogy at 17:00mins – especially given the US Supreme Court’s decision came out yesterday.  If you have any further questions on this topic, please contact Luke Zadkovich.
  • Pre-Contract Protection and Damages Early Contract and Charterparty Review (Part 3 of Economic Crisis Series)

    Pre-Contract Protection and Damages Early Contract and Charterparty Review (Part 3 of Economic Crisis Series)
    Pre-contract protection – securing useful representations and creating contemplated damages.   Part 3 of our series on how to deal with an economic crisis, Shannen Trout discusses what international businesses can do pre-contract.   Obviously many deals now will be off the table in this market. Contraction is already happening. The price of oil has collapsed. As liquidity dries up, this situation might well get worse.   However, there will be those in a position to continue deal-making. At this time, it is even more important to consider carefully what kind of representations or guarantees you can obtain before entering into contracts. An air-tight bank performance guarantee is the strongest, yet hardest to obtain.   In this talk, we look at other options and assess what can be done in the context of representations and special damages awareness. These strategies are to be employed during commercial negotiations and put parties in a better position if things go wrong. For further information please contact Shannen Trout or anyone from the ZFZ team to discuss this, or any of the other topics in the video series.
  • Early Contract and Charterparty Review (Part 2 of Economic Crisis Series)

    Early Contract and Charterparty Review (Part 2 of Economic Crisis Series)
    Contractual levers and measures   Part 2 of our series on how to deal with an economic crisis – a guide for international businesses.   Damon Thompson discusses the importance of reviewing your contracts and charterparties at an early stage in an economic downturn, as well as some key provisions to look out for following the outbreak of COVID-19.   As liquidity tightens across the economy, parties will increasingly look to tighten the belt. Being on top of your charterparty provisions and understanding exactly where you stand is the first step for a company being ready to combat any speculative claims.    Damon has years of experience in the legal industry, including eight years at a major energy trading company, so is well aware of what practical steps a company can take to protect its position. Damon looks at standard form exclusion clauses, safe port warranties and what parties can do now to protect their position over the coming weeks and months.   If you have any questions, or would like someone to have a close look at your charterparty/contractual terms, please speak to Damon or your usual ZFZ contact.
  • Relationships Matter Early Contract and Charterparty Review (Part 1 of Economic Crisis Series)

    Relationships Matter Early Contract and Charterparty Review (Part 1 of Economic Crisis Series)
    Relationships matter in a crisis   Part 1 of our series on how to deal with an economic crisis – a guide for international businesses.   Karl Greissinger joins us with over two decades of in-house experience in the energy sectors. In this video, Karl offers his invaluable insight into the key issues that businesses should keep close in mind as they deal with the day-to-day difficulties posed by the economic climate.    While a lot of our guidance relates to specific legal steps that businesses can take, Karl is uniquely positioned to offer a commercial perspective. Relationships matter, and the way that a company conducts its business now could have an effect much more far reaching than the consequences of the ongoing global downturn. Contact your usual ZFZ contact, for more.
  • Introduction – How to deal with an economic crisis as an international business

    Introduction – How to deal with an economic crisis as an international business

    Introduction to 17-part ZFZ Series:  How can international businesses deal with an economic crisis?     In this video, Luke Zadkovich introduces our series on tools and strategies that international companies can use to protect and mitigate their positions. We are currently advising clients on these strategies almost daily.    Economic crises, by their nature, rarely come announced. But once they do, early movers are better placed. Liquidity dries up. Payments are delayed or unpaid. Relationships are tested. Market prices drop significantly. Price volatility increases exponentially. Counterparty insolvency is a genuine prospect.    This is not the first, nor will it be the last. While the causes will be different, previously successful strategies can and should be employed. Experience matters, and 2008 taught us a lot. Our strategies are nuanced, layered and staggered. Economic crisis management is bespoke and multi-faceted. It varies between different scenarios and relationships.   Today is our intro. There is plenty more to come. We would love your feedback, comments, likes and shares. It all helps to get our message out there and assist more businesses during this concerning time. Your ongoing support is very much appreciated. Further details, please contact Luke Zadkovich or your usual ZFZ contact.

Overview

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