Author: Haugen Consulting
ARBITRATION -- BUNKERS -- CONSUMPTION -- CHARTER -- PERFORMANCE WARRANTY CLAUSE -- Owner Award
In this time-charter contract, the Vessel had under-consumed its allotted bunkers because of slow steaming. The difference in the allotted and actual consumption would be paid to the Owners; however, due to vague language in the charter, the amount of under-consumption was under dispute in arbitration.
BPVOY4 -- LAYTIME -- FREE PRATIQUE -- NOTICE OF READINESS CLAUSE -- PORT -- Owner Award
After the Vessel tendered NOR in the Port of New York, it took over 6H to grant free pratique—a violation to the BPVOY4’s Notice of Readiness Clause. However, the Port of New York does not formally endow free pratique, but instead views a tendered NOR as the beginning of laytime.
ASBATANKVOY -- LAYTIME -- PRORATED -- CHARTER PARTY -- CARGO -- DEMURRAGE -- PARCEL TANKER -- ARBITRATION -- Owner Award
The original Charter Party contained no stipulation on laytime rates, so in order to incentivize payment, the Owners gave a gratis prorated cost for time at port. However, when the demurrage claim became outstanding, the Owners began arbitration and removed the original prorate and pursued the claim in full.
ASBATANKVOY -- ARBITRATION -- TERMINAL -- DEMURRAGE -- TERMINAL -- DOCK MASTER -- CARGO CONTAMINATION -- CONSEQUENTIAL DAMAGES -- Charterer Award
After the vessel had been loaded with separate cargos, the Charterer discovered that one of the cargos had been contaminated with another. The Owner claimed that the contamination came from the terminal and commenced arbitration for demurrage and shifting expenses caused by the contamination. The Charterer counterclaimed for costs lost material costs arguing that the contamination resulted from tank seal defects.
ASBATANKVOY -- LPG CARGO -- VALIDITY OF LOAD NOR WHEN POSSIBLE CONTAMINANTS FOUND IN VESSEL’S TANKS -- NIGHTTIME TRANSIT RESTRICTION -- DELAY FINDING SOLUTION FOR CONTAMINANTS IN TANKS -- DOCUMENTS ONBOARD -- UNSAFE BERTH -- SHIFT COSTS -- ROB -- Partial Owner Award
The arbitration following the Vessel’s voyage encompassed several key demurrage arguments. Disagreements centered on the validity of the Vessel’s NOR (tendered after a pre-inspection revealed contaminants in three tanks), the responsibility of the Charterer in supplying a safe berth "reachable on [the Vessel’s] arrival," shifting delays, and ROB compensation.
ASBATANKVOY -- VALIDITY OF NOR TENDERED EOSP -- RECEIPT OF NOR -- VESSEL RESTRICTED LOADING -- LOW DISCHARGE TEMPERATURE AND EFFECT ON DISCHARGE RATE -- LINING UP -- REDUCED INTEREST -- Owner Award
This dispute arises out of the finer aspects of proper NOR declaration. In this case, the Vessel tendered NOR upon arriving at the disport’s entry buoy, which the Charterers refute as "customary anchorage." If this is not considered “customary anchorage,” then the Vessel’s NOR cannot represent a valid laytime beginning.
EXXONMOBIL VOY2000 -- PURGE -- VOYAGE ORDERS -- LOAD PORT -- CONTRACT OF AFFREIGHTMENT -- CARGO HANDLING INSTRUCTIONS -- Charterer Award
This arbitration stems from the Contract of Affreightment on ExxonMobil Voy2000 and the responsibility of nitrogen purging. In this case, when the Vessel reached the load port, the Charterers refused Vessel loading because the tanks were not purged to the cargo’s required .5% O2 level. The Owners, however, brought evidence proving that the specific purging requirements were not included in the COA or the voyage orders.
VOYAGE CHARTER PARTY -- LAYDAY -- CARGO -- CHARTER PARTY -- DEMURRAGE -- DEADFREIGHT -- DETENTION -- WRONGFUL CANCELLATION -- Owner Award
The Vessel arrived at loadport and tendered NOR within laycan, however the Charterer failed to supply the cargo. The Charterer, after fourteen days of expressing to the Owner that loading would begin soon, cancelled the Charter Party because of "unexpected problems." The Owner subsequently demanded compensation for damages to demurrage, deadfreight, and detention.
ASBATANKVOY -- DEMURRAGE -- FREIGHT -- ARBITRATION -- VOYAGE -- INTEREST ON FREIGHT AND DEMURRAGE -- Owner Award
After outstanding demurrage and freight bills for three separate voyages, the Owner began arbitration to recover lost profits and interest. Although the Charterer did not participate in the proceedings, the sole arbitrator pointed out several issues with the Vessel's NOR at the loadport which could have been contested.
BURDEN OF PROOF -- ARBITRATION -- CARGO CONTAMINATION -- CARGO -- PORT -- BURDEN OF PROOF -- Owner Award
Upon arriving at the discharge port, the Vessel’s cargo was discovered to be heavily contaminated with sea water. The Charterers subsequently began arbitration to recover expenses; however the Charterer’s claim must prove that cargo quality was intact before voyage and was contaminated after discharge.
