Security of the charterer’s obligations under the charter party is a vital issue for today freight market. At the same time, financial instruments for the purpose of securing obligations under the charter party, for instance by issuing bank guarantee by the charterer, are rarely used in practice.
Interlegal experts consulted the Client, a large carrier of project cargos, acting as the charterer under the charter party.
According to the charter party provisions, charterer’s obligations should be secured by bank guarantee issued by the first-class European bank in favour of shipowner.
Due to 20-year experience in settlement of non-standard issues, Interlegal lawyers prepared a draft bank guarantee with regards to peculiarities of contractual relationship and held active negotiations with shipowner in respect of approval of the bank guarantee terms.
Prompt and precious work resulted in proper execution of bank guarantee and its acceptance by the shipowner, enabling the parties to proceed to fulfillment of contractual obligations immediately.
Interlegal lawyer Ekaterina Gadetskaya and senior lawyer Alexey Remeslo have been working upon the case.