UKDC - Soundings December 2010

The preparation of cargo holds for the next intended carriage is a critical operation which requires careful planning and execution; this article considers a number of legal issues which may arise, including terms commonly used in charterparties to describe the cleanliness of cargo holds, the consequences of failing to comply with such terms, potentially resulting in off-hire claims and damages, and the role of the independent surveyor.

Hold preparation is probably the most vital part of bulk carrier operations; if it is not undertaken properly, it can result in substantial cargo claims, delays, additional cleaning, survey costs and expensive off-hire disputes.

The English Commercial Court has ruled in favour of the defendant charterers in a demurrage dispute that examined the choice of route and care for cargo.

Collins v Lawrence [2017] EWCA Civ 2268