A British Columbia (BC) appeals court has opened the door for shipowners to jump the entire charter chain and demand direct payments from shippers when a time-charterer fails to pay.

While involving a relatively small claim, the ruling marks the first time that a Canadian court has upheld the long-standing rule in English law that allows a shipowner that is a party to a bill of lading to demand unpaid freight due to another party along the chain, according to Vancouver law firm Bull, Housser & Tupper.

The