#56 Process of Deduction

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.