There has been extensive reporting of the Coronavirus disease (COVID-19) impacting the international shipping industry. Reports have included quarantining ships, container ships departing ports with dramatically reduced utilisation of their [twenty-foot equivalent unit] TEU capacity and shipping lines facing refinancing difficulties due to market uncertainty impacting their bond values.
Repair and refit shipyards are also being impacted. In the People’s Republic of China shipyards are at a virtual standstill whilst in other countries there are reports of repair and refit shipyards receiving increased business as owners look to satisfy continuing vessel maintenance and upgrade programmes in locations that are yet to suffer significant disruption. At the time of writing, the global spread of COVID-19 shows no sign of slowing. Many shipyards are actively considering how COVID-19 could impact their contracts. This article examines, in general terms, some key English law contractual considerations, but it is always important to consider each contract and situation on a case by case basis.
Excerpted from Drydock Magazine. To read the full article, click on the PDF linked below.