ABSTRACT
Set off Charterers must pay freight in full and are not entitled to deduct counterclaims from it by relying on the usual rules of common law and equitable set off. The House of Lords in The Aries 7 confirmed that freight is a special obligation which is not subject to either of these rules.8 Any cross-claims made by charterers must be made by counterclaim or by separate action. This ruling was fatal to the charterers’ claim because they had allowed their cargo claims against the shipowners to become time barred under the Hague Rules before the shipowners commenced their action for freight. Attempts to set off claims for short delivery of cargo,9 and for damages consequent upon a repudiatory breach by the shipowner, 10 have also failed.
