Delivery undertakings of charter shipping companies around the world are expected to come under unprecedented scrutiny following a recent ruling in the Federal Circuit Court of Australia.
Judge Raphael found shipper Leisure Freight & Import had the right to cancel a contract with Spliethoff Transport when the latter took an inordinate amount of time to complete its side of the deal.
Leisure Freight & Import cancelled the contract in August 2012 – drawing legal action for damages from Spliethoff – when its consignment of two luxury yachts remained unshipped in Florida four months after their expected arrival in Brisbane.
In his findings, Judge Raphael stated he believed Spliethoff had a clear intention to "only perform its contractual obligation when it suited it", being "when it had sufficient base cargo to make a voyage from the United States to Australia financially viable".
Citing the internationally-recognised Carriage of Goods By Sea Act 1991, Judge Raphael found one month would have been a reasonable time for shipment.
Iain MacIntyre
