Hapag-Lloyd AG v Skyros Maritime Corp: Late Redelivery and Lost Opportunities

The English Commercial Court (the “Court”) has provided helpful clarity on the extent of damages available to a claimant shipowner for the late redelivery of a vessel under a time charter where there is evidence that the owner of the vessel would have been unable to enter into a subsequent charter for the vessel. In such circumstances, only nominal damages will be recoverable, as no actual loss has been suffered.

Background

• Hapag-Lloyd AG (the “Charterers”) entered into two materially identical time charters (the “Charters”) in respect of the MV ‘Skyros’ and the MV ‘Agios Minas’ (the “Vessels”) with Skyros Maritime Corporation and Agios Minas Shipping Company (the “Owners”). By the terms of the Charters, the Vessels were required to be redelivered on 30 May 2021 (in respect of the MV ‘Skyros’) and 31 May 2021 (in respect of the MV ‘Agios Minas’);
• prior to the redelivery dates, the Owners entered into two MOAs for the sale of the Vessels to MSC Shipping SA and Maersk A/S, respectively. Under these MOAs, the Owners were precluded from entering into subsequent charters following the expiry of the Charters;
• both Vessels were subsequently redelivered late by the Charterers, with the MV ‘Skyros’ being about two days late,