Conflict causes loss of commission
A shipbroker fixed a ship between owners and charterers which was due to load grain from Ukraine.
Shortly thereafter they received notice from the charterers to cancel the fixture as the Ukrainian ports had been closed as a result of the Russian invasion and therefore, they were unable to proceed to the load port.
As a result of the cancellation of the fixture commission was not payable. Luckily the shipbroker had loss of commission cover with ITIC and the following term applied:
“Your commission income in respect of contracts for the charter, sale/purchase or management of a nominated ship not being paid by reason of your loss of legal entitlement to this income because of the termination
of the contract due to:
war, invasion, acts of foreign enemies, civil war,
rebellion or revolution;”
ITIC paid the shipbroker the full commission they would have earned under the charterparty had it proceeded as planned, which was US$ 48,125.