Category: Archive

Archive / U.S. Maritime Cases

Mediterranean Shipping Co. (USA) Inc. v. International Freight Services, Inc. – 2014 AMC 1442, 26 Mar 2014

CONTAINER DEMURRAGE -- DOCTRINE OF LACHES -- STATUTE OF LIMITATIONS -- DELAYED PROCEEDINGS -- INTEREST CALCULATION -- Plaintiff Award The Claimant’s container sat at the discharge port for a period of 4 years. During that time they issued 13 demurrage claims contemporaneously to the Cargo Merchant for the container’s running delay. However, the Defendant never paid, so once the container was returned by Customs, the Claimant brought admiralty action against the Defendant to recover those outstanding funds. As this was several years after the voyage (and a number of these claims), the Merchant argued that these claims were barred by laches.
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Archive / U.S. Maritime Cases

Hudson Shipping Lines Inc. v. TBS Ocean Carriers Ltd. (The “Seminole Princess”) – SMA No. 4239, 28 Aug 2014

NYPE -- GROUNDING -- SAFE PORT WARRANTY -- GOOD NAVIGATION AND SEAMANSHIP -- OFF HIRE -- REPAIR COSTS -- Charterer Award The Vessel grounded on an uncharted reef on her approach to the discharge port, Makassar, Indonesia, causing hull damage, loss of time, additional bunker consumption and other related expenses. At issue is whether Charterer breached the safe port warranty or whether Owner failed in exercising good navigation and seamanship.
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Archive / U.S. Maritime Cases

Agriculture & Energy Carriers Ltd. v. United Coals Inc. (The “Mardinik”) – SMA No. 4240, 10 Sep 2014

AMERICANIZED WESLSH COAL CHARTERPARTY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- LOST PROFITS -- Partial Owner Award Despite Charterer’s ongoing promise to supply cargo, after waiting 95 days, the Owner canceled the contract. Demurrage was awarded up to the time of contract cancellation, however, Owner’s claim for lost profits did not succeed owing to a lack of supporting evidence.
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Archive / English Maritime Cases

London Arbitration 12/14

NYPE -- TIME CHARTER -- PERFORMANCE WARRANTY -- SPEED AND CONSUMPTION -- GOOD WEATHER CRITERIA -- BREACH OF CHARTER -- CONTRACT LANGUAGE -- Owner Award During a winter voyage the Vessel allegedly underperformed and Charterer subsequently argued that the Owner was in breach of the speed and consumption warranties. Owner countered that the Vessel’s performance warranty was not absolute, but instead, was only applicable during periods of good weather.
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Archive / English Maritime Cases

Fulton Shipping Inc. of Panama v. Globalia Business Travel SAU (The “New Flamenco”) – QBD (Comm. Ct.), 21 May 2014

NYPE -- TIME CHARTER -- ANTICIPATORY BREACH – EARLY REDELIVERY – DAMAGES -- PROFIT FROM SALE OF VESSEL -- CAUSATION -- Owner Award Under a time charter contract, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim.
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Archive / Maritime Articles

What Exactly is “Detention”?

Detention accrues when a ship is delayed outside of the scope of laytime and demurrage, which is directly attributable to fault of the Charterer. Some examples of Charterer’s fault includes failure to have cargo ready when the Vessel arrives within laydays, failure to give voyage orders, delay in paying freight causing Owner to impose a cargo lien, and unreasonable departure delays in releasing the Vessel after laytime ceases to run.
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Archive / Industry News

Maritime Industry News…In Brief

In order to remain abreast of the maritime world, Haugen Consulting reviews the pertinent shipping news articles from around the globe and summarizes them for the busy industry member…in brief.   ESHIPS BOUGHT BY OLDENDORFF…The UAE-based tanker and drybulk shipowner and operator has been purchased by Germany’s Egon Oldendorff in a move to bolster their Middle East operations.   Although not fully realized, Oldendorff will take control of their business with the goal of generating “long term dry bulk freight contracts” with clients. STOLT TANKERS PROFITS DOWN…Stolt-Nielsen (SNI) reported a net profit of only $30.8 million for this quarter after last...
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Archive / Market Trends

Market Trends Through June 2014

These charts represent freight rate trends (USD/M.T.) over a three-year period for 1,000 M.T. lots of easy liquid chemicals between Houston, Rotterdam, Mediterranean, Brazil, Latin America, Asia Pacific and Kandla. Data provided by New England Tanker Chartering, Inc. (NETCO).
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Archive / U.S. Maritime Cases

Sherwin Alumina LP v. West Bulk Carriers – SMA No. 4230, 31 Mar 2014

CONTRACT OF AFFREIGHTMENT (COA) -- CONTRACT PRECEDENCE -- CHARTER CONSTRUCTION -- FREIGHT CALCULATION AND REIMBURSEMENT -- CARGO RELET -- Partial Owner Award Four years into an eight-year COA, Charterer started charging security and docking fees for vessels loading/discharging at their owned, nominated berth. In a previous award, the Panel held that Charterer had established a precedent which precluded them from charging Owner for these costs on time chartered vessels. This award covers the decis spot fixed relet voyages where these costs were factored into higher freight rates against and the calculation.
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Archive / U.S. Maritime Cases

BBC Chartering Inc. v. CVG Bauxilum, CA (The “Kronoborg” & The “BBC Georgia”) – SMA No. 4229, 24 Feb 2014

GENCON -- DETENTION DUE TO VESSEL GROUNDING -- UNPAID FREIGHT BEFORE BREAKING BULK (BBB) -- CARGO LEIN -- OUTSTANDING LIABILITY -- Owner Award Owner commenced Shortened Arbitration Procedures to recover $33K in demurrage, detention, and ancillary costs under two voyages. At issue under the first voyage concerned the Charterer’s “safe berth, safe port, always afloat” obligation as it relates to the Vessel’s grounding at the loadport, subsequent hull inspection costs, and departure delay. Under the second voyage the Owner enforced a lien on the cargo while awaiting Charterer’s freight payment and seeks compensation for detention.
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