London Arbitration 15/25

The dispute arose from delay caused by rejected holds after NOR, with owners asserting an implied obligation on charterers to arrange reinspection, while charterers argued laytime remained suspended until acceptance. The tribunal held that inspection and acceptance lay on charterers’ side of the fence and that an implied term was necessary for commercial coherence, requiring charterers to exercise due diligence to arrange reinspection within a reasonable time. Although immediate reinspection was not required (regardless of practical constraints), charterers were found in breach for failing to take reasonable steps once the vessel was ready, and laytime resumed after a reasonable period had elapsed.

Read the full judgment here.