Frustration and modern charterparty drafting: Ian Teo speaks at UKDC seminar

Our Managing Director, Ian Teo, spoke at a seminar organised by the UK Defence Club (“UKDC”) on frustration of charterparties.

Ian was joined by Mr Dinesh Sabapathy, Senior Claims Director at UKDC, and Ms Rachel Loke, Senior Claims Executive at UKDC. The seminar was held at the Ngee Ann Kongsi Auditorium, National Gallery Singapore.

Against a backdrop of geopolitical uncertainty, shipping interests face growing exposure to events that may prevent, delay or radically alter contractual performance. The seminar examined when frustration can arise, why frustration arguments are rarely successful and whether modern charterparty drafting has effectively displaced the doctrine through contractual risk allocation.

Ian noted that frustration very often displaces the allocation of risk the parties have agreed. Under a time charter, unless an off-hire event can be shown, the risk of delay and loss of time rest with the charterer. A finding that a prolonged delay has frustrated the charter would displace that allocation.

For owners and charterers alike, understanding where the contract ends and the doctrine of frustration begins has never been more important.

Thank you to UKDC for the invitation, and to everyone who joined the session.

For further enquiries, please contact:

Ian Teo at ian.teo@helmsmanlaw.com

For media enquiries:

Marisa Tse at marisa.tse@helmsmanlaw.com