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IN THE MATTER OF THE ARBITRATION ACT 1996
AND IN THE MATTER OF AN LMAA ARBITRATION
Royal Courts of Justice
Rolls Building, Fetter Lane,
London, EC4A 1NL
Before :
THE HONOURABLE MR JUSTICE HENSHAW
Between:
SINO EAST TRANSPORTATION LTD
Claimant (“Charterers”)
(Respondent in arbitration)
- and -
GRAND AMAZON SHIPPING LTD
Defendant (“Owners”)
(Claimant in arbitration)
Alexander Wright KC (instructed by Pennington Manches Cooper LLP) for the Claimant
Stewart Buckingham KC and Michael Proctor (instructed by MFB Solicitors) for the Defendant
Hearing date: 26 March 2025
Further written submissions: 21 and 23 May 2025
Draft judgment circulated to parties: 25 July 2025
Approved Judgment
.............................
Mr Justice Henshaw:
(A) INTRODUCTION 2
(B) BACKGROUND 3
(1) Facts 3
(2) The Charterparty 4
(C) THE ARBITRATION 6
(1) The cases before the tribunal 6
(2) The Tribunal’s findings 7
(D) GROUNDS OF APPEAL 10
(E) THE PARTIES’ ARGUMENTS 12
(F) PRINCIPLES 13
(1) Appeals on a point of law 13
(2) The implied indemnity 14
(a) Basic principles 14
(b) More onerous terms in bills of lading 20
(c) Limitation on the implied indemnity 22
(d) The Island Archon 25
(e) Pre-Island Archon decisions relied on 32
(f) Later cases and awards 36
(3) Incorporation of the Inter-Club Agreement into charterparties 37
(G) APPLICATION 38
(1) The Tribunal’s reasoning and conclusion 38
(2) Grounds on which leave was given 39
(3) Effect of the express terms of the Charterparty 39
(4) Effect of The “Island Archon” and other case law 42
(5) Other commercial considerations 44
(6) A special rule for inherent vice? 47
(H) CONCLUSION 48
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