In the case of dispute over charter party between Tangshan Caofeidian Xiangkun Shipping Co., Ltd. (hereinafter referred to as Xiangkun Company) as the plaintiff and Dalian Shipbuilding Industry Co., Ltd. (hereinafter referred to as DSIC) as the defendant25, DSIC chartered the floating crane ship owned by Xiangkun Company for the overwater hoising operation with the agreement that the operating period was from October 16, 2019 to January 24, 2020, the grace period was from January 25 to February 8, 2020 with no charge, and the demurrage shall be charged for extended use. Xiangkun Company completed the majority of hoising operation from October 16, 2019 to January 23, 2020. DSIC had no arrangement for hoising operation from January 24 to 30, 2020. Affected by the COVID-19 pandemic, Dalian COVID-19 pandemic prevention and control command issued the NO.3 order on January 31, 2020, which commanded all kinds of enterprises in the city shall resume work no earlier than 24:00 on February 9, 2020. Both the two companies resumed work on February 10, 2020. Through mutual consultation, Xiangkun Company completed the rest of hoising operation from February 11 to 24, 2020. Xiangkun Company argued that DSIC should be responsible for the demurrage from February 9 to 24, 2020. The Court held that, after the COVID-19 pandemic was identified as a public health emergency, the prevention and control measures taken by governments at all levels and relevant departments to protect people’s health and safety should constitute force majeure. The period from January 25 to 30, 2020 was the Spring Festival and also the legal holiday in China. DSIC did not arrange Xiangkun Company to carry out the hoising operation during the period, nor prove that DSIC made preparation work related to the hoising operation during the period. The period was the duration of force majeure affected by the COVID-19 pandemic but had no substantial impact on the contract performance, thus it should not be included into the duration of contract performance affected by the COVID-19 pandemic. The duration of contract performance affected by the COVID-19 pandemic was from January 31 to February 8, 2020. The Court ruled that DSIC paid Xiangkun Company RMB 1,133,600 of demurrage and its interest.
