ANALYSIS OF CHUNG WEI CASE

中威案評析

On October 14,1936, shipping Tycoon Chen Shuntong （STC）, upon request of the Japanese Daido Kaiun Corporation （Daido Kaiun）, and on behalf of his Shanghai Chung Wei Steamship Co.（Shanghai CW），Drafted a time charter which stipulated a charter period of 13 calendar months from the delivery date of November 1 of 1936 to December 1 of 1937 to rent out his 6,725－ton－ship ”Shunfeng”and 5,025－ton－ship”Xintaiping” to Daido Kaiunin in Shanghai. As agreed in the time charter, the rents were to be paid in installments and both ships should be returned on the date when the contract expired. In order to avoid any potential risk, Shanghai CW bought the appropriate hull insurance for both ships from Nipponkoa Insurance and Mitsubishi Marine Insurance Corporation respectivel, for which the amount insured was 667,000 yen for ”Shunfeng”and 400,000 yen for”Xintaiping”. Subsequently, Shanghai CW delivered both ships to Daido Kaiun according to the contract.