Author: Miriam Bailey

English Maritime Cases

Laysun Service Co Ltd v Del Monte International GmbH [2022] EWHC 699 (Comm) (Calver J) – 28 March 2022

CHARTERPARTY – CONTRACT OF AFFREIGHTMENT – COA – FORCE MAJEURE – APPEAL AGAINST ARBITRATION AWARD – ARBITRATION ACT 1996, SECTION 69
In December 2017, Del Monte entered into a contract of affreightment (COA) with Laysun to transport refrigerated bananas from the Philippines to Iran. The agreement was for 36 voyages from January 1, 2018 – December 31, 2018. After 17 shipments, Del Monte stopped providing cargos. Layson sought arbitration for Del Monte’s failure to supply the remaining shipment. Del Monte claimed force majeure due to US Sanctions against Iran and the resulting import restrictions. Laysun appealed the arbitration citing error of law under section 69 of the Arbitration Act 1996.

English Maritime Cases

Nautica Marine Ltd v Trafigura Trading LLC (The “Leonidas”) – English Commercial Court: Foxton J: [2020] EWHC 1986 (Comm): 28 July 2020

VOYAGE CHARTER – APPROVAL OF A VESSEL – DAMAGES FROM BREACH OF CHARTER – PRE-CONDITION OF CHARTER – PERFORMANCE CONDITION OF CONTRACT – IMPLIED OBLIGATIONS OF CHARTERER – PUTATIVE LOSS OF PROFITS – BREACH OF CHARTER

Nautica (Owner) negotiated a prospective voyage charter of the tanker “Leonidas” with Trafigura (Charterer) for a laden voyage carrying oil cargoes. The charter was subject to obtaining suppliers’ approval of the vessel within a four-day deadline. When the deadline passed without Trafigura obtaining suppliers’ approval, the charter was abandoned. Nautica claimed damages for the charterer’s alleged breach of charter of the difference between the profit it would have gained on the prospective charter and the (lesser) profit made on the fixture entered.

English Maritime Cases

Shagang Shipping Co Ltd v HNA Group Co Ltd (The “Dong-A Astrea”) – Supreme Court (Lord Hodge DP, Lord Briggs, Lord Hamblen, Lord Leggatt and Lord Burrows JJSC) UKSC 34 –  5 August 2020

BRIBERY – ENFORCE CHARTERPARTY AGAINST GUARANTOR – TORTURE – CONFESSION EVIDENCE OBTAINED BY TORTURE – LIABILITY OF GUARANTOR

The appeal was based on whether a charterparty’s guarantor (HNA) could avoid liability under the guarantee because the charterparty was allegedly obtained through bribery and so was unenforceable. The bribery charge was based on confessions made in Chinese criminal procedures by individuals who reportedly paid and received the bribe.

English Maritime Cases

Priminds Shipping (HK) Co Ltd v. Noble Chartering Inc (The “Tai Prize”) – QBD (Comm Ct), 31 January 2020

BILL OF LADING – DAMAGED CARGO – LIABILITY FOR DAMAGED CARGO – INDEMNITY – DISPONENT OWNERS – TIME CHARTER – HAGUE RULES
When a vessel commenced unloading in China, receivers discovered the soybean cargo had heat and mold damage. The Chinese courts upheld a claim by the receivers against the shipowner for US$ 1,086,564.70. The shipowner sought arbitration in London against Noble Chartering, the head charterer/disponent owner, for fifty percent of the amount paid to the receivers. Noble then requested London arbitration against its charterer, Priminds Shipping, claiming indemnity and legal fees. Priminds appealed the arbitration ruling to the High Court.

English Maritime Cases

London Arbitration 21/21

ASBATANKVOY – FRUSTRATION – VOLGA-DON SHIPPING CANAL (VDSC) – WINTER CLOSURE – ADDITIONAL FREIGHT – DEVIATION – INTERIM PORT CLAUSE – ALTERNATIVE DISCHARGE CLAUSE – DEADFREIGHT – DEMURRAGE – DELAY
A sea-river vessel was chartered on an amended Asbatankvoy to transport fuel oil. The vessel was to sail from Turkmenbashi, Turkmenistan, to OPL Kavkaz, Russia, via the Volga-Don Shipping Canal (the VDSC). The VDSC accelerated its official closing for the season, and the vessel was refused “commercial” entrance. The charter was frustrated, and the vessel was forced to retrace its route back to the Caspian Sea. Owners claimed additional freight, deadfreight, deviation, quantum meruit demurrage, and damages for detention.

U.S. Maritime Cases

Tricon Dry Chemicals LLC v Global Petro Converge – SMA 4391, 17 Jul 2020

PURCHASE CONTRACTS – FORCE MAJEURE – TIME IS OF THE ESSENCE CLAUSE – LOSS OF PROFITS – CALCULATION OF DAMAGES
When Respondent failed to ship purchased cargoes in a timely manner, Claimant charged the Respondent failed to perform its obligations under two separate purchase contracts and sought damages, interest, legal, and arbitration fees. Respondent claimed force majeure for changes in Saudi Arabian export laws and delays due to the holy month of Ramadan and Eid holiday.

English Maritime Cases

London Arbitration 15/21

DEMURRAGE – BERTH OPERATOR RULES (UBT) – COMMENCE OF LAYTIME – DESPATCH
Owner claimed demurrage was due to delays at the Davant, Mississippi, loading port and cited the charterparty. Charterer countered Owner owed despatch and that UBT Rules as incorporated into the fixture superseded the charterparty.

English Maritime Cases

London Arbitration 20/21

NORGRAIN – CHANGE IN DISCHARGE PORT NOMINATION – OWNERS CLAIM FREIGHT FOR TRANSPORT TO FIRST PORT NOMINATED– ESTOPPEL – UNJUST ENRICHMENT
The vessel was chartered on an amended Norgrain form to transport a cargo of soybeans from Brazil to China. Discharge port(s) were nominated during the voyage and subsequently changed. The owner asserted the first ports nominated were binding and freight payable basis same although the vessel did not complete passage to these ports and instead discharged cargo at another port.

English Maritime Cases

London Arbitration 9/22

AMENDED NYPE – OFF HIRE – FAILURE TO PRESENT CLEAN HOLDS – DAMAGES FOR FAILURE TO PRESENT CLEAN HOLDS – RATE OF OFF-HIRE – BREACH OF CHARTERPARTY
The vessel was chartered on an amended NYPE form for a charter trip. Off-hire was claimed for failure to provide clean holds, and the rate of off-hire contested. Charterer also sought damages for breach of the charterparty due to rejection of the holds.

English Maritime Cases

London Arbitration 6/22

NYPE FORM – TIME CHARTER – HOLD CLEANING – OFF HIRE DURING EXTENDED HOLD CLEANING – COVID-19 PANDEMIC – COVID-19 PROTOCOLS – OFF HIRE DUE TO ALLEGED CREW SICKNESS 

Two disputes for off-hire developed on a one time, time charter trip from India to China relating to extended hold cleaning and alleged crew sickness.