Category: Archive

WORLDSCALE -- PORT EXPENSES -- AMOCO CLAIMS CLAUSE -- TIME BAR -- Charterer Award When Charterer directed the Vessel to a port which did not have an established Worldscale (WS) rate, Charterer advised Owner that port expenses would be for Charterer's account. When Owner's claim for port expenses arrived 155 days after discharge, Charterer rejected the claim stating it was barred under the Amoco Claims Clause.

BALTIME 1939 -- NON-PAYMENT OF HIRE AND BUNKERS -- REPUDIATORY BREACH -- QUANTUM MERUIT FOR COMPLETION OF VOYAGE -- Owner Award When Charterer failed to pay three installments of hire, other expenses and arrange and pay for bunkers under a time charter contract, Owner first informed Charterer that they were suspending performance of the charter until outstanding hire was paid and then three days later, informed Charterer that they accepted Charterer's repudiatory breach. At the time of the repudiatory breach the Vessel was at sea en-route to the disport and in fact Vessel continued on to the disport and discharged Charterer's cargo.

BALTIME 1939 -- VESSEL BREAKDOWN -- WRONGFUL TERMINATION -- REPUDIATORY BREACH -- DAMAGES -- Owner Award When Charterer emailed Owner that Owner had committed breaches of two time charter parties amounting to repudiations and that the two charter parties were terminated, Owner responded by stating Charterer's email was itself a repudiatory breach and that the charter parties were thusly terminated. Owner claimed damages in the form of lost profits due to early redelivery, unpaid hire and fees, detention at the disport and the cost incurred when containers were left on board one of the vessels at redelivery.

GAFTA FORM 120 -- FOB SALE -- INSUFFICIENT ETA NOTICE -- REPUDIATORY BREACH -- Buyer Award When the FOB Buyer failed to nominate the vessel at least 7 working days prior to vessel's ETA, Seller rejected the nomination. Despite non-conformity with the contract’s ETA requirement, this was not a sufficient basis for Seller to repudiate the contract.

SUGAR CHARTER PARTY 1999 -- INVALID NOTICE OF READINESS -- DEMURRAGE -- ALLEGED SERIOUS IRREGULARITY BY ARBITRATORS -- Owner Award In ruling for Charterer in an arbitration on documents alone, the Panel noted that as Charterer had not introduced the case of "The Happy Day", the inclusion of which may have further reduced Charterer's demurrage obligation, the Panel need not consider it. Charterer subsequently appealed to the High Court on the basis that the arbitrators, knowing Charterer had made a concession, had a duty to alert Charterer and failing to do so it constituted a serious irregularity.

CONSTRUCTION OF WARRANTY -- OIL COMPANIES APPROVALS CLAUSE -- "TBOOK" DEFINED -- Owner Award At the time of the fixture, Owner alleged that the Vessel was approved by five oil majors as required by the charter. Thus, when Charterer’s buyer rejected the Vessel due to a sea-chest valve needing repairs as imposed by the Class survey, a sale was lost with Charterer incurring substantial damages. The Commercial Court ruled Owner had breached the Oil Companies Approval Clause. The Court of Appeal overturned the Commercial Court’s ruling and clarified the meaning of the acronym "TBOOK" and the word “approved” in regards to the charter's majors approval requirement.