No fixture, no problem
A ship had been fixed by a shipbroker, who then received notice from the charterer to cancel the fixture due to the closure of Ukrainian ports as a result of the Russian conflict.
The charterparty made the following provision: Load port: 1 SB 1 SP Nikolaev. (Owners to satisfy themselves regarding any restrictions incl draft). Due to the ongoing conflict the ship was unable to proceed to the load port. As a result of the cancellation of the fixture commission was not payable and the shipbroker made a claim under their loss of commission cover with ITIC. The following terms 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.”
The full commission was paid by ITIC in the sum of US$ 48,125.