Author: Haugen Consulting
ASBATANKVOY -- TIME-BAR -- CHARTERPARTY CONSTRUCTION -- HEATING AND PURGING -- Owner Award
Owners submitted a claim for additional heating and purging costs beyond the scope of the requirements in the charter party, but Charterers rejected the claim as time-barred. The Panel was called on to settle the dispute and explained how specific modifications to the charter party terms affected their ruling.
ASBATANKVOY -- INTERPRETATION OF RELOAD CLAUSE -- FREIGHT ASSESSMENT -- NUMBER OF CARGO GRADES CARRIED -- Charterer Award
During the discharge at Freeport, Charterers informed Owners that they planned on loading additional cargo after discharge operations completed. Owners commenced arbitration to recover this freight payment from Charterers. Charterers disagreed, claiming that they were within their rights to reload cargo at any discharge port within the scope of the charter party. This award describes how the Panel interpreted the special provisions clauses and applied them to the dispute.
GENCON -- DEMURRAGE -- WHETHER BERTH OR PORT CHARTER -- NIGHT TRANSIT -- GROUNDING -- AWAITING PILOT -- SHIFT TO BERTH -- Owner Award
This award covered a number of issues, including whether the fixture of "one safe berth" and a WIBON (whether in berth or not) constituted a berth charter party, whether or not port restrictions on night transits are demurrage events, and how a pilot shortage affected the Panel's ruling on waiting time and a grounding incident.
NYPE -- TIME CHARTER TRIP -- SUBSTANTIAL DELAYS AT DISPORT -- IMPLIED TERM TO DISCHARGE WITHIN REASONABLE TIME -- OWNERS’ CLAIM FOR FINANCIAL LOSS -- Charterer Award
Under a NYPE form time charter, the Vessel delivered cargo to Lagos, but wasn't given berthing instructions for nine months. Owners commenced arbitration to recover lost profits from the delay in redelivering the Vessel. How did the Panel define "reasonable time" under a NYPE charter party? This Panel's ruling lays out what happens when parties don't include protective clauses with specific wording in their contracts.
VEGOILVOY -- SUBSTANTIAL FAILURE OF EPOXY COATING OF CARGO TANKS -- TANK LINING -- VESSEL SUITABILITY -- WHETHER OWNERS IN BREACH OF CHARTER -- Charterer Award
The Charterer's inspector rejected the Vessel's tanks due to severe corrosion and rust, and declared the Vessel unsuitable. Charterer held the Owner in breach of the charter not only for the condition of the tanks, but also if the Vessel's tanks were actually epoxy coated as presented in the charter party. Charterer won the initial dispute in the Court of Singapore. Owners appealed, and this award details how the Court approached the issue.
NYPE -- SUBCHARTER -- SUBPOENAS -- REQUEST FOR DOCUMENTS -- CONSOLIDATION OF DISPUTES -- Partial Owner Award
The Vessel suffered severe damage allegedly caused by stevedore negligence, and Owners commenced arbitration to recover damages. Charterers contended that they had no first-hand knowledge of the incident, as the Vessel was under sub-charter at the time. Charterers subsequently requested arbitration against their sub-charterer and requested that the Panel consolidate all parties into one proceeding.
TIME CHARTER -- LATE REDELIVERY -- REQUEST FOR CONSOLIDATION -- COMMON QUESTION OF LAW -- Partial Charterer Award
While under a time charter, the Vessel was sub-chartered for a single voyage. During the single voyage, the time charter expired and the Vessel was delivered late. Owners attempted to consolidate their arbitration claim for damages against both the time charterer and the sub-charterer, citing SMA rules which allow for same when the dispute against all parties involves the same common question of law. The ruling explains why the Panel rejected Owners request for consolidation.
GENCON -- VESSEL ARRESTED WHILE AWAITING BERTH -- FORCE MAJEURE -- HURRICANE -- STORM -- WEATHER -- GROUNDING -- DEMURRAGE -- Owner Award
Although the loading operations were uneventful, the discharge on the Mississippi River was delayed due to a recent hurricane (Katrina) as well as the threat of another hurricane (Rita). Charterers declared force majeure, and, in the event that the Panel did not agree, also argued that the demurrage claim should be reduced during an eight day period that the Vessel was under arrest. The award explains why the Panel upheld the Owners claim in full, despite the arrest and a grounding incident.
GENCON -- NOR VALIDITY -- TENDERED PRIOR TO LEGALLY BEING ABLE TO ENTER THE PORT -- LOCAL AUTHORITIES -- DEMURRAGE -- Charterer Award
The Vessel arrived and tendered NOR at the Libyan discharge port despite not having received permission to discharge from the Libyan Port Authority. Four days after arrival, permission was granted. The Vessel had missed her turn at berth, and the port had closed for a period due to inclement weather. The Charterer rejected both the NOR and the subsequent demurrage claim. The award explains the consequences for the Owner for failing to re-tender NOR after receiving permission to discharge.
NYPE -- TIME-CHARTER -- SPEED WARRANTY -- BUNKER CONSUMPTION -- CHARTERPARTY LANGUAGE -- APPLICATION OF MARGIN FOR "ABOUT" -- EXERCISE OF LIEN OVER CARGO (OFF HIRE) -- Partial Owner, Partial Charterer Award
The Panel in this dispute was called on to determine the amount recoverable by Charterers under a time charter for the Vessel's underperformance in the warranted speed and for the over-consumption of bunkers. The award details how the Panel calculated the damages.
