Nominating Ship

Where the Charterparty stipulates that the ship’s name is to be nominated then the Shipowner must nominate a ship.

Once the ship has been nominated, unless there is specific provision within the Charterparty, then the ship cannot be subsequently changed.

Where the charterparty provides that the nomination of the ship 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. (Union Transport v Continental Lines 1992).

There is no implied liberty to allow substitution of a ship for any other ship. Sometimes Express Provision is made to allow substitution of ships. Where there are express provisions in the Charterparty relating to substitution of the ship it is generally taken that it would be implied that the Shipowners would be permitted only to substitute a ship of like characteristics to the one named in the Charterparty.