Emergency Contact MV Smart update - Shipowners unfettered right to collect freight under the bill of lading Home Latest updates News MV Smart update - Shipowners unfettered right to collect freight under the bill of lading 1 Sept 2021 Download Sign up for alerts In the recent judgment of Alpha Marine Corp v. Minmetals Logistics Zhejiang Co.Ltd (The M/V Smart) [ 2021] EWHC 1157 , the Court recognised the right of the vessel’s owner/contractual carrier under the bill of lading to ask for freight to be paid to them under bill of lading, even where the vessel has been time chartered. This judgment should be seen positively by Members, as it confirms for the first time that shipowners can collect freight due under bills of lading, even when there is no default on their time charterers’ part, subject only to an obligation to account for any surplus. The significance of this right for shipowners is undoubted, as it now offers a separate and straightforward course of action against a defaulting charterer, in addition to the traditional exercise of a lien on freight. Facts Alpha Marine Corp (“Owners”) time chartered their vessel M/V Smart to Minmentals Logistics Zhejang Co Ltd (“Charterers”) on an amended New York Produce Exchange (NYPE) form. Charterers sub-chartered the vessel to General Nice Resources (Hong Kong) Ltd (“GNR”) on voyage charter terms (“the Charterparty”). The vessel proceeded to load a cargo of coal at Richards Bay in South Africa and Owners’ bills were issued, according to which freight was payable “ as per charterparty”. On 19 August 2013, upon the vessel’s departure from the port of Richards Bay, she ran aground just outside the channel and later broke her back. As a result, both the vessel and her cargo were lost. Shortly after, the Charterers issued a freight invoice to GNR in the sum of US$ 1,860,390. Under the Charterparty, the freight was deemed to be earned " whatever vessel/cargo lost or not ", and it was provided that “ 100% of the freight paymen