AMERICAN TRADING AND PRODUCTION CORP. V. SHELL INT'L MARINE, LTD.
453 F.2d 939 (3d Cir. 1972)
NATURE OF THE CASE: This was a suit to obtain additional compensation under a charter
contract. American (P) sought review of a decision dismissing its claim for additional
compensation for transporting cargo pursuant to a contract of voyage charter between the
parties.
FACTS: Shell (D) contracted with American Trading (P) on March 23, 1967 to take lube oil
from Texas to Bombay at the prevailing rate under the American Tanker Rate Schedule (ATRS).
This was $14.25 per long ton of cargo, plus 75%, and $.85 per long ton for passage through
the Suez Canal. After departing on May 15, 1967 the Washington Trader was advised of a
possible diversion due to a war, Suez Canal crises, but P continued towards the Canal. The
Canal was closed and P was forced to travel 9000 miles around the Cape of Good Hope. D was
contacted and diversion approval was requested. D said it was P's decision because the
contract required delivery of the cargo without qualification of the route. P advised D that
it would proceed via the Cape of Good Hope and would reserve all rights to extra
compensation. P arrived 30 days too late and traveled 18,055 miles instead of 9,709. P sued
D to recover $131,978.44 for the extra expenses; the closure of the canal discharged
performance under the contract. The trial court dismissed P's claim. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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