Author: Haugen Consulting
NYPE -- FAILED PORT STATE INSPECTION -- MISSED LAYDAY WINDOW -- FORESEEABILITY OF DAMAGES -- REMOTENESS OF DAMAGES -- Charterer Award
Because the Vessel failed a Port State Inspection due to structural deficiencies and was detained until Owner could affect repairs, Charterer missed a layday window with a sub-charterer. Charterer sought to recover lost profits in arbitration and won. Owner appealed and the Judge considered whether the Charterer’s damages were unforeseeable, too remote, or erroneously derived.
BERTH OR PORT CHARTER -- WAITING TIME -- CHARTERPARTY CONSTRUCTION -- ONE SAFE BERTH -- Charterer Award
With no incorporation of a proforma charter party form, at issue was whether the fixture constituted a berth charter or port charter. The key terms considered include "one good and safe Charterer’s berth" in conjunction with other clauses addressing a safe port warranty and shifting time. In overturning the arbitration award, the Court examined the fixture terms and explained contract construction.
SHELLVOY 5 -- NOTICE OF READINESS -- FAILURE TO OBTAIN FREE PRATIQUE WITHIN 6 HOURS -- Owner Award
With the charter party fixed on an amended Shellvoy 5 form inclusive of "Shell Additional Clauses – February 1999", this dispute hinged on whether the Vessel’s NOR was valid in light of the fact that Free Pratique was not granted within six hours as specified within Shell Additional Clause 22.
CHARTERPARTY LANGUAGE "SHINC" -- SUPER HOLIDAYS -- ADDITIONAL CLAUSE SUPERCEDING PRO-FORMA – DESPATCH – DEMURRAGE -- Charterer Award
This laytime dispute hinged on the interpretation of a fixture recap term, SHINC (Sundays and Holidays included), in conjunction with the terms of the underlying charter party form. The underlying charter party Clause 63 stipulated "Sundays and Holidays included", followed by the phrase, “…excluding Super Holidays”. At issue is how the contract should be interpreted specifically relating to the terminal shutdown during the Christmas holiday period.
COMETALS PRO FORMA CP -- SAFE BERTH WARRANTY -- VESSEL SUITABILITY -- BERTH RESTRICTIONS – IMPROPER CANCELLATION -- Owner Award
At issue is whether the Charterer improperly canceled the charter party. The fixture stipulated the discharge as "one safe berth" and when the Receiver at the intended berth rejected the Vessel as being unsuitable (taking into consideration the size of the terminal’s grabs relative to the size of the Vessel’s hatch openings), the Charterer canceled the fixture claiming that the Owner failed in providing a suitable vessel thereby frustrating the commercial purpose of the charter.
GENCON -- WHARFAGE AND WATCHMEN FEES FOR EXTENDED DISCHARGE TIME -- DEMURRAGE AS JUST COMPENSATION -- DELAYS BEYOND CHARTERER’S CONTROL -- Partial Charterer, Partial Owner Award
This award follows up an earlier decision under London Arbitration 23/07 for the same voyage, and addresses two new points: 1) who is responsible for dues paid by Owner resulting from the delayed discharge; and, 2) whether time is interrupted for discharging delays that are beyond Charterer’s control e.g. awaiting shoreside equipment and personnel.
CONTRACT OF SALE -- IMPLIED TERM REGARDING QUALITY AFTER DELIVERY -- CONDITION OF CARGO -- Buyer Award
This ruling hinged on whether there is an implied term warranting condition of cargo after delivery; and, if so, whether the Seller was relieved of such obligation under an express exclusion clause (which, in this instance, did not reference "conditions") or, alternatively a certificate final clause (which, in this instance, did not exclude implied terms).
NYPE -- LATE REDELIVERY -- ILLEGITIMATE LAST VOYAGE -- MEASURE OF DAMAGES -- PENALTY CLAUSE -- Charterer Award
In an appeal over the late redelivery of a time-chartered vessel, the Court was called on to determine if a clause stipulating that in the event of late redelivery the daily hire rate for the 30 days prior to the commencement of the overrun period is to be calculated at the higher prevailing market rate, is a penalty clause and unenforceable in English law.
SHELLTIME 3 -- TIME CHARTER -- UNPAID HIRE -- WITHDRAWAL OF VESSEL FOR UNPAID HIRE -- DETENTION OF VESSEL -- CONSUMPTION OF BUNKERS -- SECURITY -- Partial Owner Award
The Court was called to determine if, following the Charterer's failure to pay hire, Owner's withdrawal of the Vessel during load operations was legal. If so, was the Owner entitled to damages or solely compensation for expenses (bunkers and time consumed discharging the cargo) incurred fulfilling their duties as bailee, plus the cost of securing the bank guarantee as required by the Charterer.
ASBATANKVOY -- CARGO SEGREGATION -- WITHIN VESSEL'S NATURAL SEGREGATION ("WVNS") -- VOYAGE ORDERS -- DEADFREIGHT -- STOWAGE -- LOI -- REFUSED TO LOAD -- Owner Award
The Panel was asked to determine the Charterer's liabilily where the charter party expressly defines the Vessel’s stowage capacity and the cargo requirement as "Min 38,000 MT, Max 4 grade(s) WVNS" (within Vessel’s natural segregation). Is the Charterer liable for deadfreight if the Owner refuses to load a portion of 2 of the nominated 3 parcels because it would be necessary to load through a single-valve segregation? Is the Charterer liable for deadfreight because they refused to sign Owner’s Letter of Indemnity (relieving Owner of risk of cross-contamination) which would have permitted Owner to load the full nomination? The Panel explains their decision in this award.
