Glory Wealth Shipping Pte Ltd v Korea Line Corporation  EWHC 1819 (Comm)
The parties had entered in to a time charter, on an amended NYPE form, for a minimum of 36 months to a maximum of 38 months. Five months after commencement of the charterparty, Charterers purported to make early redelivery of the vessel. Owners accepted that redelivery as a repudiatory breach entitling them to terminate the charterparty.
When the dispute was referred to arbitration, Charterers accepted that their termination of the charterparty was wrongful. The only issue between the parties was, therefore, the determination of damages. At the time when Charterers redelivered the vessel there was no available market, and Owners had continued on a spot fixing basis for the next 7-8 months until the market revived.
The judge referred the matter back to the arbitrators for calculation of Owners’ actual loss. He held that, in the absence of an available market at the time of Charterers’ breach, damages should be determined based on Owners’ actual loss, rather than applying actual losses until an available market came in to existence.