Nominating Ship

Where the charterparty provides that the vessel’s name is to be nominated then the owner must nominate a vessel. Once the vessel has been nominated, unless there is specific provision within the charterparty, then the vessel cannot be subsequently changed. Where the charterparty provides that the nomination of the vessel shall be made within a certain time, a failure to make a nomination within the relevant time is a breach of condition entitling the charterer to claim damages and cancel the charterparty. See Union Transport v Continental Lines 1992.
There is no implied liberty to allow substitution of a vessel for any other vessel. Sometimes express provision is made to allow substitution of vessels. Where there are express provisions in the charterparty relating to substitution of the vessel it is generally taken that it would be implied that the owners would be permitted only to substitute a vessel of like characteristics to the one named in the charterparty.