When a charterer fails to load the vessel fully — supplies less cargo than agreed, supplies it late so that the vessel sails with her holds partly empty, or fails to supply cargo at all — the owner loses part of the freight it expected to earn. English law gives the owner a separate cause of action to recover that loss: deadfreight, literally “freight for cargo that was never loaded”. The claim exists independently of…
Cotton is one of the most fragmented commodity markets in the world: thousands of ginners, hundreds of intermediate traders, and mills in dozens of countries — and the majority of internationally traded cotton moves under contracts that incorporate the Bylaws and Rules of the International Cotton Association (ICA) in Liverpool. If you trade cotton internationally and a dispute arises, the answer to “where do I bring this claim” is, in most cases, ICA arbitration. This…
A CIF grain contract, shipment period: July. The vessel is brought alongside on 30 July, loading runs all night, and the final tonnes drop on board at 01:30 on 1 August. The master signs the bill of lading and dates it “31 July”. Formally everything looks clean: the B/L is dated the last day of the shipment period. But the loading was actually finished in August. The question is simple and uncomfortable at the same…
Legal costs in GAFTA and FOSFA arbitration are recoverable from the losing party, subject to certain conditions. The recovery regime in both forums departs from the English default of “costs follow the event” and operates differently in each: in GAFTA, each party bears its own legal costs as a rule, and recovery is only possible where the parties have entered into an express written agreement; in FOSFA there is no such prohibition, and legal costs…
The new edition of the FOSFA Rules of Arbitration and Appeal came into force on 1 April 2026. The amendments are few in number but touch the way parties and arbitrators actually conduct proceedings: email is now the prescribed method for submitting documents, English is mandatory for all submissions and oral evidence, renewal of a lapsed claim is limited to one occasion, and the exchange of written positions on appeal has been made more symmetrical.…
In an FOB contract on FOSFA or GAFTA forms, vessel nomination is not a formality but a key buyer’s obligation, the breach of which under English law can cost the contract. If the notice is given even one day late, the seller may be entitled to refuse to load and claim damages. But not every defect in a nomination is the same: courts distinguish situations where the breach genuinely gives a right to terminate from…
When a vessel is delayed through the charterer’s fault, but the charter contains no demurrage provision or the demurrage period has already expired, the owner can claim damages for detention. The two concepts are often confused, yet they have a fundamentally different legal nature, are calculated differently, and carry different consequences for both sides. What detention is Detention is the owner’s claim for unliquidated damages caused by the charterer’s breach of contract. Unlike demurrage, whose…
Laycan determines when a voyage truly begins. A vessel arriving too early waits idle; a vessel arriving too late risks losing the charter entirely. This article deconstructs laycan as a contractual mechanism — from its structure to its practical consequences for both shipowner and charterer. What Laycan Means Laycan is shorthand for “laydays/cancelling” — a date window in a voyage charterparty comprising two distinct elements: Laydays (the first date) — the earliest day on which…
The cancelling clause gives the charterer the right to walk away from the charter if the vessel is not ready to load on time. But this right is not as straightforward as it appears: its nature, boundaries, and the consequences of wrongful cancellation produce some of the sharpest disputes in shipping law. This article examines the cancelling clause as a mechanism — from the structure of laycan to the practice of English courts. For laycan…
Default Clause in FOSFA contracts is a contractual damages mechanism triggered when one party commits a material breach. When a seller fails to ship oil or a buyer fails to provide a vessel, the aggrieved party may invoke Default Clause and recover damages calculated under a fixed formula embedded in the contract itself. FOSFA International (Federation of Oils, Seeds and Fats Associations) publishes standard form contracts for bulk oils and fats trading. The principal forms…
