Category: Archive

London Arbitration 10/14

VOYAGE CHARTER -- CALCULATION OF TIME BAR DATE -- CHARTERPARTY LANGUAGE -- MEANING OF "FINAL DISCHARGE" -- NO CARGO LOADED -- REPUDIATORY BREACH -- Partial Owner Award Prior to loading, Charterer cancelled the charter after the Vessel was deemed unfit. When Owner waited over three months from that notice to formally submit a claim for damages, Charterer argued that it was time barred.
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London Arbitration 8/14

GENCON -- WHETHER LAYTIME SUSPENDED AT LOADPORT -- FREIGHT PAYMENT ON “SIGNED/STAMPED FREIGHT INVOICE” OR “BREAKING BULK” -- NOR VALIDITIY -- WHETHER INVALIDITY OF NOR WAIVED -- WHETHER OWNERS ENTITLED TO DAMAGES FOR DETENTION -- CARGO LEIN -- WHETHER CARGO LIEN REASONABLY EXERCISED -- Owner Award Owner is seeking compensation for balance of freight, demurrage, and detention. Charterer rejected the Vessel’s NOR tendered during port traffic delays due to the breakdown of a dredger; denied liability on balance 5% freight due based on Owner failing to comply with a C/P clause stipulating that freight be payable after receipt of “signed/stamped freight invoice” on Owner’s official letterhead but always before breaking bulk; and, denied demurrage at disport based on the fact that the SOF showed a second NOR and thus holding Owner bound by that. In turn, Owner exercised a lien on the cargo at disport awaiting payment of freight, consequently claiming detention and/or demurrage.
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Star Tankers, Inc. v. Chevron Marine Ltd. (The “SN Federica”) – SMA No. 4224, 23 Dec 2013

ASBATANKVOY -- AMBIGUITY OF OWNER NAMED IN CHARTER PARTY -- CONTRACT REFORMATION -- DEMURRAGE -- Partial Owner Award This partial final award addresses the claimant’s right to assert a demurrage claim against Charterer, when the claimant is not expressly named as the Owner in the fixture recap. Star Tankers, as disponent Owner, filed a demurrage claim with Charterer which was rejected on the basis that the charter party names the Owner as Scerni Di Navigazion.
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London Arbitration 1/14

NYPE -- TIME CHARTER TRIP -- SPEED AND BUNKER CONSUMPTION -- ONGOING PERFORMANCE WARRANTY -- Partial Charterer Award At issue is whether the seaworthiness of the Vessel as warranted in clause 1 "for the service and all time during the currency of this Charter" applies to the speed and consumption warranty as a continuing warranty throughout the duration of the charter (not just at the time of delivery).
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London Arbitration 4/14

SALE CONTRACT -- FOB DEMURRAGE -- RIVER PORT -- NOR TENDERED PRIOR TO ARRIVAL -- VESSEL’S SUSPENSION OF LOADING DUE POSSIBLE CARGO CONTAMINATION -- APPROPRIATE DATE FOR CURRENCY EXHANGE RATE -- Buyer Award Under an FOB sale of ethanol ex Matadi, Democratic Republic of the Congo the Seller invoiced the Buyer for the contract price, which was paid by the Buyer. Subsequently the Seller claimed additional costs and supplemental freight, which the Buyer did not dispute, however Buyer presented a counterclaim for demurrage stating that it should be set off against Seller’s claim. Seller brought arbitration proceedings against the Buyer to dispute the demurrage and to recover the supplemental charges.
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London Arbitration 5/14

GENCON -- VOYAGE CHARTER -- COST OF SECURITY GUARDS -- DISTINCTION OF BIMCO ISPS CLAUSES -- NATIONALITY OF CREW -- Owner Award This dispute arose under a voyage charter from Turkey to a U.S. port wherein the U.S. Customs and Border Protection (hereinafter CBP) ordered security guards to be posted. Charterer denied liability for the cost of the guards on the basis that the latest BIMCO ISPS clause excuses Charterer from liability when security guards are required due to the nationality of the crew.
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London Arbitration 7/14

NYPE -- TIME CHARTER -- REPUDIATION OF CHARTER -- UNPAID HIRE -- CALCULATION OF DAMAGES -- Owner Award Charterer withheld payment for hire thereby frustrating the charter. Owner considered this a repudiatory breach and withdrew the Vessel from the Charterer’s service.
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Caresse Navigation Ltd. v. Office National de L’electricite and Others (The “Channel Ranger”) – QBD (Comm. Ct.), 14 Oct 2013

NYPE -- WHETHER BILL OF LADING INCORPORATED CHARTER PARTY LAW AND JURISDICTION -- Owner Award With respect to a cargo contamination claim, the consignees and the cargo insurers challenge the jurisdiction of the English court and law (stipulated in the charter party) when the cargo contamination occurred at the place of delivery in Morocco.
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Flame SA v. Glory Wealth Shipping Pte. Ltd. (The “Glory Wealth”) – QBD (Comm. Ct.), 22 Oct 2013

CONTRACT OF AFFREIGHTMENT -- REPUDIATORY BREACH -- CONTRACT CONSTRUCTION -- DAMAGES -- Owner Award A three-year contract of affreightment (COA) was fixed basis six liftings per year from 2009 to 2011. Charterer failed to declare laycans for the last two shipments of 2009 and for all shipments the following year. At arbitration the Disponent Owner was awarded damages in the form of lost revenues, being the difference between the COA and market rate. Charterer appealed claiming that the Tribunal erred at law and serious irregularity. Namely, that after the sudden collapse of the freight market in 2009 the Owner’s financial position had deteriorated to a point that would have prevented them from being able to provide the required vessels; the tribunal’s belated request for supporting documents from Owner; and, the tribunal’s failure to consider the issue of Owner’s dishonesty raised by Charterer.
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DS-Rendite-Fonds Nr 106 VLCC Titan Glory GmbH & Co Tankschiff KG and Others v. Titan Maritime SA and Others (The “Titan Glory”) – QBD (Comm. Ct.), 13 Nov 2013

LONG-TERM PERIOD TIME CHARTERS -- CHARTER RESTRUCTURING AGREEMENT (CRA) -- SEMI-ANNUAL HIRE ADJUSTMENT -- CONTRACT CONSTRUCTION -- Owner Award Due to the financial challenges brought on by the market collapse of 2008/9, Owner and Charterer restructured the long-term period time charters for eight VLCCs. Under this new agreement, the hire would be derived on a month-to-month basis relative to the Clarkson Index and adjusted semi-annually. Disagreements arose with respect to the proper construction of the contract and interpretation of the semi-annual adjustment clause.
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