Author: Haugen Consulting

Tropical Product Sales, SA v. Suisse-Outremer Reederei, AG (The “Liberty”) – SMA No. 3382, 18 Aug 1997

VEGOILVOY -- PORT -- CARGO -- CUSTOMS -- SHORE TANK -- CUSTOMS -- Owner Award As is customary discharge procedure for the port, the Owners discharged cargo under customs control. However, the Charterers found the shore tank empty and demanded reimbursement for the improper discharge of cargo to customs officials.
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Palm Shipping Inc. v. Tauber Oil Co. (The “Seraya Spirit”) – SMA No. 3385, 2 Sep 1997

ASBATANKVOY -- BERTH -- DISPORT -- TYPHOON -- ACT OF GOD -- DEMURRAGE -- Owner Award Although the berthing delay at disport was caused by a typhoon, the Owners argue that their claim is valid because the typhoon happened sixteen days before berth. Subsequent changes could have been made to accommodate possible delays.
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Fairy Tale Shipping, Ltd. v. Stolt-Nielsen Parcel Tankers, Inc. (The “Altair”) – SMA No. 3388, 30 Sep 1997

ASBATANKVOY -- CARGO -- LOADPORT -- FIBER GRADE -- CHARTER PARTY -- LAYDAY -- Charterer Award The Vessel was chartered to load a cargo of corn oil at one loadport as well as a fiber grade cargo of ethylene glycol at another. However, the Vessel’s zinc tanks failed numerous inspections for the ethylene glycol and caused the Charterer to cancel the charter party on the grounds that the Vessel was unready to load within the given laydays.
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Botany Bay Parcel Tankers International v. Fiorano Agroindustrial, Ltda. (The “Botany Trader”) – SMA No. 3391, 7 Nov 1997

ASBATANKVOY -- BILL OF LADING -- FREIGHT -- LIEN -- DEMURRAGE -- DISPORT -- Owner Award Because the Bill of Lading was late in arriving, the freight payment due Owners was also delayed. In response, the Owners exercised their posessory lien on the cargo at the discharge port until the freight was paid, thereby accruing demurrage that the Owners’ claim was ultimately faulted by the Charterers.
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Panamerican Tankers, Inc. v. Blystad Shipping (USA), Inc. and Pasternak, Baum & Co., Inc. (The “Diamond Star”) – SMA No. 3396, 12 Dec 1997

VEGOILVOY -- DEMURRAGE -- DISPORT -- PART CARGO -- PIPELINES -- Owner Award The Vessel accrued demurrage at disport because of difficulties discharging a part cargo of semi-refined fish oil. The Owner blamed the Charterers’ cargo for the delay on the grounds that lines connected to the fish oil’s tanks were backed up with sludge and particles while other part cargoes were discharged without delay.
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Blystad Shipping & Trading, Inc. v. Wings Investments, Ltd. (The “Aniara”) – SMA No. 3402, 17 Dec 1997

ASBATANKVOY -- CHARTER PARTY -- TRANSSHIP -- CARGO -- DISPORT -- DEMURRAGE -- Charterer Award This arbitration centered upon disputed language between charter party exception clauses. The Owners had to transship cargo due to ice restrictions to the original disport, a task which the Owners’ claim falls under the language of Clause 14 ("if port … is inaccessible due to ice … any demurrage is responsibility of the Charterer"). But, there is a Transship Clause which states that “Owners have the option to transship the cargo at their own time.”
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Gestopmo Armatoriali SRL v. Stinnes Interoil AG (The “Sun Rose”) – SMA No. 3359, 16 Jun 1997

EXXONVOY 90 -- DISPORT -- CHARTER PARTY -- PUMP WARRANTY -- DEMURRAGE -- LAYTIME -- PORT -- Charterer Award While discharging at the first of two disports, the Vessel failed to meet the charter party’s pump warranty. After the voyage, the Owners presented an adjusted demurrage claim that excluded laytime while not meeting the pump warranty at the first port. The Charterers, however, argued that no laytime at discharge after breaching the warranty, including laytime at the second port, can be counted as demurrage.
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Norwegian Gas Carriers AS v. Etoxyl CA (The “Norgas Discoverer”) – SMA No. 3374, 18 Jun 1997

WARSHIPOILVOY -- CARGO -- DEMURRAGE -- DISPORT -- OFFSHORE STORAGE -- LOADPORT -- CONTAMINATION -- Charterer Award Because the cargo was contaminated, the Charterers used the Vessel as an offshore storage facility while filtering the cargo into a useful form. The Owners argue that contamination came from the loadport’s inferior steel railcars, and therefore claim this extensive delay at disport as demurrage. The Charterers contended that the disport samples prove that the contamination occurred on the Vessel and counterclaimed for cargo damages.
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SeaRiver Maritime, Inc. v. Enron Clean Fuels Co. (The “Charleston”) – SMA No. 3377, 30 Jun 1998

ASBATANKVOY -- DEMURRAGE -- TIME-BAR -- BROKER -- CHARTER PARTY -- Charterer Award The Owners submitted a demurrage invoice within the 90-day time-bar, however, the Charterers contested its completeness upon submission. The Owners subsequently resubmitted the full claim to the broker on the last day of the time-bar, which they claim satisfies the charter party.
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Alpaca Shipping Corp. v. Enichem America, Inc. (The “Artesia”) – SMA No. 3380, 11 Jul 1997

ASBATANKVOY -- CARGO -- DISPORT -- CONTAMINATION -- DEMURRAGE -- LAYTIME -- HANDLING COSTS -- Owner Award Because the cargo was found to be off spec at disport, the Charterers accepted a US$100,000 settlement for the contamination. In addition to the settlement, the Owners submitted a demurrage claim for additional laytime at disport. However, the Charterers counterclaimed for excess handling costs and rejected the Owner’s invoice based on the cargo contamination and the Vessel’s inoperative radar.
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