Loss of ship; where the charter is for a named vessel and the named vessel is lost.
Damage to the ship; named in the charter where the time to carry out the repairs would take so long as to frustrate the charter by delay. In addition where the costs of the repairs necessary to carry out the voyage is greater than the repaired value of the ship plus the amount of freight at risk.
Delay to ship; where the vessel’s arrival at the first load port is delayed for a period sufficiently long to render the performance of the voyage radically different to that contemplated in the charter. The length of delay required to bring about frustration depends on circumstances.
For instance ‘Spirit of Dawn’ was fixed to load iron rails from Newport, South Wales, for discharge in San Francisco, California. The vessel sailed from Liverpool in ballast during January unfortunately she grounded and was not re-floated until February. She proceeded for repairs and presented to load the cargo in August. The charterers had by this time fixed another vessel and the cargo was no longer available. It was held that the charterers were entitled to refuse to load as the charter was for a definite voyage and an essential ingredient was that the ship should arrive at the loading port in time for it.