Jurisdiction(s):
United Kingdom

GAFTA 49: English Commercial Court—proof of performance required for substantial damages after wrongful force majeure declaration and repudiation; strict Clause 6 timing on vessel substitution; section 69 appeal allowed

Published on: 28 January 2026

Published by a LexisNexis Arbitration expert

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Article summary

Olam Global Agri Pte Ltd v Holbud Ltd [2025] EWHC 3187 (Comm) What are the practical implications of this case?

This ruling serves as a practical touchstone for advisers handling commodity sale claims and GAFTA arbitrations. It underscores strict observance of the GAFTA 49 machinery, with particular focus on vessel nomination and any swap under Clause 6. The court applied a narrow reading to substitution, tied to the contractual ETA and the agreed delivery period, and dismissed the contention that a replacement ship might be put forward at will beyond the Contract’s parameters. Accordingly, any attempted nomination outside the ETA or delivery period fell foul of the bargain. For arbitration specialists, the message is to advance your entire legal and evidential case before the tribunal, and seek explicit determinations on all material issues. In this matter, Holbud sought to invoke waiver/estoppel on appeal, yet had not advanced that basis in the GAFTA process, and the BOA Award made no findings on its essential components. More generally, parties should not expect the court to bridge omissions or sustain an award on points never properly ventilated and decided in the arbitration. The judgment also confirms the ongoing, real-world utility of section 69...

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