Author: Haugen Consulting
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.
NYPE -- HULL DAMAGE -- ICE -- ANCHORAGE -- SAFE PORT WARRANTY -- CHARTER PARTY CONSTRUCTION -- Owner Award
En route from disport, the Vessel suffered hull damage from ice and the Owner submitted a claim for damage compensation. The Charterer contended that ice was an obvious expectation at this specific disport during the winter, and therefore, the risk was borne by the Owner upon the port’s acceptance. The Owner defended stating that the charter outlined that all berths, ports and anchorages must be safe regardless of acceptance implications.
SHELLTIME 4 -- MARPOL -- CHANGE OF INTERNATIONAL REGULATION -- TIME CHARTER -- CARGO RESTRICTIONS -- COMMERCIAL RISK -- DUE DILIGENCE -- Charterer Award
This arbitration began as a result of MARPOL international regulation changes during the operating period of this specific time charter. Due to these changes, the two operating Vessels became legally unable to carry their contracted cargo. This ruling settles which party should bear the commercial risk.
NOR -- TENDERED FROM OUTER ANCHORAGE -- NOR ACCEPTED UNCONDITIONALLY BY THIRD PARTY TERMINAL -- DEMURRAGE -- Owner Award
The Vessel tendered her NOR to the Charterer’s agents and the Terminal from the outer anchorage within the given laycan. However, a congested berth forced her to wait at the outer anchorage for ten days, which was subsequently claimed as demurrage by the Owners. The Charterer rejected this demurrage claim and stated that because the Vessel was at the outer anchorage upon tender, the NOR was invalid. Conversely, the Owner pointed out that the Terminal unconditionally accepted their NOR.
TIME CHARTER -- LATE REDELIVERY -- LOST PROFITS UNDER SUBSEQUENT FIXTURE -- LIABILITY -- Owner Award
This arbitration appeal deals with the damages that a time-charterer is liable to pay to a shipowner for any late redelivery of the chartered Vessel.
