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…
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 contracting party breaches a contract, the injured party is entitled to compensation for damages. But English law does not permit the injured party to simply sit back and watch losses mount. It requires the injured party to take reasonable steps to mitigate its losses — this is the principle of mitigation of damages. For a trader facing non-performance of a GAFTA or FOSFA contract, understanding mitigation is a practical matter: what steps should…
Default clause is a damages compensation mechanism built into standard GAFTA contracts. When one party commits a material breach (breach of condition), the injured party may declare default and demand compensation equal to the difference between the contract price and the market price of the goods on the date of default. The fundamental difference from the general rules for damages recovery under English law: the GAFTA default clause locks in a specific formula for calculating…
The English approach to contractual penalties stands in marked contrast to that prevailing across continental European jurisdictions. Where many legal systems permit parties broad latitude in specifying monetary consequences for non-performance, the courts of England and Wales will strike down stipulations whose primary purpose is punitive rather than compensatory. For practitioners operating in the sphere of cross-border commerce — particularly those advising on commodity supply agreements governed by GAFTA or FOSFA terms — a working…
The London Maritime Arbitrators Association (LMAA) has developed several frameworks to resolve maritime disputes. Its flagship LMAA Terms provide a comprehensive set of rules for large and technically complex cases. The Intermediate Claims Procedure (ICP) fills the gap for claims up to around USD 400 000, while the Small Claims Procedure (SCP) is designed to handle more modest cases quickly and economically. This article concentrates on the SCP, reviewing when it applies, how arbitrators are appointed,…
