Republished with permission of Black Sea Law Company LLC
For more information contact Margarita Bendiuha, Associate
Freight rates increased sharply in early March 2026, driven by military action in the Middle East and the rising cost of bunker fuel. The increase in maritime transportation costs is also becoming one of the key factors influencing global commodity prices, including fertiliser, grain and oilseed markets. As safety remains the primary consideration, the Master may decide not to proceed with the voyage, which may result in vessel deviation or changes in routing decisions. At the same time, the rapid rise in bunker fuel prices affects not only freight rate formation but also the performance of ongoing voyages.
Most voyage charterparties are governed by English law. Therefore, at the current stage shipowners and charterers are facing challenges that require prompt but well-balanced commercial and legal decisions.
Legal & Commercial Risks
The ongoing war in Ukraine has created multiple commercial and legal challenges in the shipping industry, including claims related to demurrage, detention, delays in loading and discharge operations, termination of the contracts, repudiatory breaches, and changes in voyage routing. A similar legal and commercial environment may arise due to the ongoing military tensions in the Middle East and the risks associated with the Strait of Hormuz. In this context, while every situation must be assessed on a case-by-case basis, we recommend that our clients consider several key factors:
Monitor the situation in ports:
Parties should closely monitor developments in ports and official statements issued by authorities regarding cargo operations, navigational safety, and vessel transit procedures, including any official restrictions affecting port access, cargo handling, or vessels’ movements.
Safety first:
The safety of the vessel and crew remains the primary consideration. Decisions ultimately lie with the Master and the Shipowner. It is also strongly recommended to include a War Clause in charterparties and bi ls of lading. The Strait of Hormuz has been designated a Warlike Operations Area by the IBF, triggering potential additional compensation and rights for crew, which owners should review against contractual obligations.
Compliance with the “Safe Port” principle
Under English law, as established in The Eastern City, a port is considered that “…a port will not be safe unless, in the relevant period of time, the particular ship can reach it, use it, and return from it without, in the absence of some abnormal occurrence, being exposed to danger which cannot be avoided by good navigation and seamanship.” [1958] 2 Lloyd’s Rep 127 at p. 13
Shipowners must continue to follow the well-established English law concept of a safe port when deciding whether to proceed to a particular destination.
Force Majeure:
English law does not recognize a general doctrine of “force majeure”. Therefore, the precise wording of contractual clauses becomes critically important.
Preparation for potential disputes:
Parties should be prepared for different scenarios, including charterparty canceling, termination, breach, or even frustration. The correct legal qualification of the circumstances wi l be crucial in determining the appropriate course of action and developing an effective strategy to mitigate potential risks and liabilities. Both shipowners and charterers should maintain proper documentary evidence at the earliest possible stage in anticipation of potential arbitration proceedings or claims.