Author: Haugen Consulting
NYPE 1946 -- TIME CHARTER -- OFF-HIRE CLAUSE MEANING OF “LOSS OF TIME” -- Owner Award
Charterer was liable to pay for the off-hire period while drifting off the discharge port as there was no net loss of time as the discharge berth was unavailable.
BALTIMORE FORM C -- MOORING PERSONNEL STRIKE -- PILOT DELAY -- WIBON CLAUSE -- NOTICE OF READINESS VALIDITY -- SUBSTANTIAL READINESS -- Charterer Award
The Vessel experienced serious delays en route to the upriver loadberth due to a strike of mooring personnel. Charterer rejected the subsequent demurrage claim, and at arbitration, they argued that (1) Shortened Proceedings should govern, (2) the loadport Notice of Readiness (NOR) was invalid because the Owner had not met all NOR requirements, and (3) the delay due to a workmen strike (mooring personnel) is exempted by a special exceptions clause.
ASBATANKVOY -- COA -- ARBITRAL VENUE -- Charterer’s Motion Denied
Charterer requested arbitration hearings to be conducted in Houston, Texas, despite the Contract of Affreightment (COA) stipulating that arbitration is to take place in New York.
NYPE -- LOSS MITIGATION -- UNSAFE BERTH -- VESSEL DAMAGE -- CHARTER HIRE RATE -- PROTRACTED VOYAGE -- WITHOUT GUARANTEE PROVISION -- Partial Owner Award
The Disponent Owner’s claim was a summation of five different issues recapped below as (1) Vessel damage while alongside the discharge berth; (2) disputed daily hire rate for transit time to Santos to conduct repairs; (3) unsafe berth; (4) time charter trip exceeding the estimated voyage days fixed; and (5) indemnity for a third-party claim for underperformance attributable to bottom-fouling (due to prolonged waiting time at Charterer’s disport).
COA -- SEAWORTHINESS -- CARGO DAMAGES -- INDEMNITY -- Owner Award
Charterer seeks market damages due to a one week delay in cargo delivery because of Vessel repairs. Owner rejects the Charterer’s damages claim on the basis that the Charterer sold the cargo under a CIF contract (title and risk of loss to the cargo is transferred when the cargo passes the ship’s rail at the loadport) and is therefore not the injured party.
ASBATANKVOY -- SAFE PORT WARRANTY -- "APPROACH" DEFINED -- Owner Award
Owner appealed the U.S. District Court ruling for exoneration from or limitation of liability resulting from the Vessel striking a partially submerged anchor in its approach to the Charterer’s discharge terminal. Per Owner, Charterer breached the safe berth warranty. Per Charterer, the incident occurred outside its area of control and the Owner is responsible for port draft restrictions by virtue of the port being named in the charter party.
UNLAWFUL MEANS CONSPIRACY -- CONFIDENTIALITY WAIVED -- DISCLOSURE FOR JUSTICE -- Claimant Award
Bdocuments that had been presented in a London arbitration were needed by the Claimant to pursue court proceedings against others for alleged unlawful means conspiracy
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BPVOY 4 -- “REASONABLE” OVERAGE FREIGHT -- INCORRECT FREIGHT CALCULATION -- RECOVERY OF OVERPAYMENT -- Owner Award
Owner and Charterer appealed a judgment that found Charterer was liable for a "reasonable" amount (subject to further inquiry) of freight that was overpaid on the Owner’s purportedly miscalculated invoice. At issue is whether freight overage applies for cargo carried in excess of the minimum volume stipulated when the additional port/region was not named in the Overage Section of the contract.
NYPE -- TIME CHARTER -- BACK-TO-BACK CHARTERS -- 1986 US TAX REFORM ACT -- INEMNITY FOR US FREIGHT TAX -- Charterer Award
Tax payable under U.S. Tax Code for transportation income earned by a nonresident alien or foreign corporation is potentially payable for the hire earned by the head owner as well as the income earned by the disponent owner, subject to any exemptions. In this instance the disponent owner was found to be exempt and, therefore, their request for indemnity from the sub-charterer had to fail.
BIMCO PIRACY CLAUSE -- TIME CHARTER -- NECESSITY OF PIRACY INSURANCE -- REIMBURSEMENT OF INSURANCE PREMIUM -- Charterer Award
When the Vessel was instructed to sail on a voyage which took her through the Gulf of Aden -- an area known to be exposed to piracy risks – the Owner undertook insurance against kidnap, ransom, and loss of hire for which they seek reimbursement for the $31K insurance premium. At issue is whether the insurance was "necessary" as stipulated in the BIMCO Piracy Clause.
