Author: Haugen Consulting
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.
ASBATANKVOY -- BILL OF LADING -- NOR TENDERED OUTSIDE PORT LIMITS -- "QUICK DEPARTURE" PROCEDURE -- PIRACY -- Owner Award
Charterers presented two complaints against the Owner in this arbitration. The first was regarding a "quick departure procedure" in which a verbal agreement was made between Charterer's and Owner's agents, for the Vessel to sail the loadport without a copy of the bill of lading onboard. The second was regarding the Vessel's location when she tendered NOR at the Nigerian discharge port. The award details why the Panel rejected any agreements made by agents, and how the threat of piracy off the shore of Nigeria affected the Panel's ruling on what constituted a valid NOR.
ASBATANKVOY -- DELAY -- FAILURE TO PROSECUTE -- DISMISSAL -- Partial Owner Award
The Charterer began arbitration to recover damages resulting from an Owner breach of contract and demanded for an immediate partial reward. However, the Charterer delayed to prosecute the manner beyond the claim’s submission and after eight years of delayed prosecution, the Owner moved to dismiss the case.
ASBATANKVOY -- SHORTLOADING -- WITHHELD FREIGHT -- TWO BOTTOMS -- DAMAGES -- Owner Award
In compensation for damages (specifically shortloading, an address commission on freight issue, legal and administrative costs) incurred by the Owner, the Charterer made an unauthorized freight deduction from the contracted pay amount. In the partial award of SMA No. 3965, the sole arbitrator ruled that the withheld freight and the claim for damages would be addressed in two different rulings. The withheld freight was addressed in the aforesaid partial award and the remaining items are discussed herein.
TIME CHARTER -- SPEED WARRANTY -- CONSUMPTION WARRANTY -- SPEED CALCULATION -- SEA CURRENT FACTOR -- WEATHER FACTOR -- FAVORABLE CURRENTS -- Owner Award
This arbitration concerns the interpretation of the time chartered Vessel’s speed and consumption warranties, specifically, if the Vessel's actual speed performance be reduced by taking beneficial sea currents into account.
SALES CONTRACT -- CARGO -- BREACH -- WRONGFUL CANCELLATION -- MEANING OF LAYCAN IN SALES CONTRACT -- Seller Award
In this contract, the Buyer had to nominate a performing Vessel for the voyage, narrow the laycan to a two day period, and then the Seller would have to load the Vessel in 36 + 6 hrs. The Buyer performed all contracted requirements; however, upon arrival, the Seller’s plant was unable to supply cargo within the contracted load window. The Buyer subsequently claimed that the Seller violated the contract and canceled the transaction.
GENCON -- DETENTION -- VESSEL MASTER -- DELAYED LAUNCH FOR CARGO INSPECTOR -- Owner Award
Although several issues were disputed in arbitration, only the detention claim item will be recapped. The Owner filed for detention damages when the Vessel was delayed at port because there was no launch available for the port’s inspector after nightfall. The Charterer, however, contended that it was customary at the given loadport for the vessel master to be responsible for such launches.
