23 May 2024

Commodities in Focus Weekly - Issue 79


Who should I pay? Singapore High Court decision of Marchand Navigation Co v Olam Global Agri Pte Ltd.

In Marchand Navigation Co v (1) Olam Global Agri Pte Ltd; and (2) Sinco Shipping Pte Ltd1, the Singapore Court considered the position of a sub-voyage charterer, Olam Global Agri Pte Ltd ("Olam"), who had received a notice from the head owner in a chain of charterparties, Marchand Navigation Co ("Marchand"), that it was exercising a lien over sub-freights, sub-hires or demurrages.

The court had to decide whether Marchand's right to exercise the lien was affected by the existence of a dispute as to liability between Marchand and its charterer, Sinco Shipping Pte Ltd ("Sinco"). The court also considered whether the presence of an arbitration clause in the head charterparty had any bearing on Marchand's ability to make a claim against Olam in court.

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