The International Transport Intermediaries Club (ITIC) has cut a payout by a shipbroker after a charterer claimed damages for failing to pass on fixture options correctly.
The insurer said a charter agreement between the unnamed parties contained an option for a second voyage, but the broker did not forward the charterer’s message declaring this.
It had to be nominated upon completion of loading on the first voyage.
The owner refused to perform the second leg as the option had not been declared in time, and the market had risen in the meantime.
The charterer maintained that, if the owner did not perform, it would claim from the broker damages of $500,000 representing the additional cost of fixing a ship in the prevailing market.
"Following negotiations with ITIC and the broker, the owner agreed to perform the second leg for an additional $275,000, which more accurately reflected what could have been achieved on the spot market," ITIC said.
ITIC paid the broker for the additional freight under the claim.
