Defence 03 Nov, 2021 A time charter chain in a rising market Nicola Cox Head of Defence Claims A case study in common time charter issues including: calculating the redelivery date and final hire due, withdrawal of the vessel from charter and the effect of withdrawal down the charter chain.  Download PDF This news publication was put together with the assistance of Lewis Moore from Hill Dickinson who was instructed by Members in the case. A recent Defence case for one of West’s charterer Members in the middle of a time charter party chain highlights a number of “core” charter party issues, with some surprising results. The charter party: West’s member was the time charterer in the middle of the charter chain. Both the head and sub charters provided: Redelivery of the vessel was to be latest 16 May plus any offhire periods, as long as charterers (in each case) gave notice at least 30 days before the charter party’s original redelivery date. On redelivery, charterers (in each case) had the right to deduct the value of redelivery bunkers (the bunker prices were agreed in the charters) “ from the last sufficient hire payments” . The value of bunkers on delivery at the agreed charter party prices amounted to more than US$400,000 which was equivalent to more than two full hire instalments at the sub charter hire rate and just over three full hire instalments at the (lower) head charter hire rate. There was a right of withdrawal of the vessel from charter with a grace period of three clear banking days. Events leading to the dispute: On 28 February, sub charterers paid the 13 th hire instalment based on a redelivery date of 20 April and making a deduction from hire in respect of part of the estimated bunkers on redelivery. Sub charterers’ message read: “ Pls be advised that 13th hire for subj vsl was paid against attached hire SOA bss min CP duration considering projected next voyages after completion of present one, ….. In the meantime, charterers would like to assur