Category: English Maritime Cases

Shipping industry court rulings and arbitration awards under English law.

London Arbitration 11/24

DEMURRAGE - ADVERSE WEATHER DELAY – BILLS OF LADING DELAY – CARGO LOAD DISCREPANCY – ANVOY FORM – SYNACOMEX 90 FORM – PHYTOSANITARY CERTIFICATE – DESPATCH – WEEKENDS EXCLUDED FROM LAYTIME – TIME EXCLUDED CLAUSE – DOCUMENTS ALLOWANCE – CUSTOMS CLEARANCE DELAY – DELAYS DURING WEEKENDS The vessel was chartered for a single voyage transporting wheat between Russia and Brazil. Owners claimed demurrage of US$48,093.75 for time spent awaiting customs clearance over the weekend. Charterers denied liability, claiming this time was exempt from laytime, and filed a counterclaim of US$40,208.33.
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London Arbitration 12/24

TIME CHARTER – AMENDED NYPE FORM – UNDERPERFORMANCE – LSMGO DISCREPANCY – ROB FUEL DISCREPANCY - OFF-HIRE VS UNPAID HIRE – CRANE FAILURE – SPEED AND CONSUMPTION METHODOLOGY – WEATHER ROUTING COMPANY REPORTS A vessel was time chartered under an amended NYPE 1993 form for the transport of paddy rice from Rio Grande to Veracruz. A dispute arose regarding the final hire accounts. Owners claimed US$11,854.31 for unpaid hire. Charterers denied liability, arguing deductions made to the claim were valid, citing underperformance, off-hire for crane failure, and a discrepancy in the LSMGO figures.
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London Arbitration 15/24

VOYAGE CANCELLATION – TERMINATION OF CHARTER – BREACH OF CONTRACT– IMPLIED OBLIGATION OF GOOD FAITH – DAMAGES AND MITIGATION – OBTAINING SUBSTITUTE FIXTURE AFTER CANCELLATION - AMENDED GENCON FORM – MISSED CANCELLING DATE – SHIPPER’S CANCELLATION OF VOYAGE – WHETHER CARGO WAS SPECIFIC TO SHIPPERS OR AN AGREED OBLIGATION A vessel chartered under an amended GENCON form was to transport scrap metal from Venezuela to Turkey. No loading occurred, and the charter was canceled. The dispute centered on Owners’ claim for damages due to the fixture’s cancellation and Charterers’ counter that Owners did not act in good faith to secure substitute employment.
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London Arbitration 1/24

NORGRAIN FORM – CHANGE OF PORTS – CHANGE IN FREIGHT DUE TO CHANGE OF PORTS – DESPATCH TERMS – DO LOCAL PUBLIC HOLIDAYS COUNT FOR LAYTIME PURPOSES

A vessel chartered under an amended Norgrain agreement was to transport dense grains from Paranagua, Brazil, to China. The discharge points were initially Zhoushan and Taixing but were later changed to Tianjin. Disputes arose over outstanding freight charges and despatch claims.

London Arbitration 2/24

TIME CHARTER – NYPE FORM – BUNKERS UPON REDELIVERY – SPEED AND CONSUMPTION CLAIM – WEATHER ROUTING COMPANY – ALLEGED ADDITIONAL / UNAUTHORIZED PORT CALL

In a time charter dispute based on an amended NYPE 1946 form, Owners claimed a balance of hire for $79,103.27, while Charterers denied responsibility and counterclaimed for $100,000, alleging the vessel had traveled an extra 250 miles and did not meet speed and consumption warranties.

London Arbitration 3/24

FORCE MAJEURE – “LAWSUIT” DEFINITION – TIME-BARRED CLAIMS – TIME-CLAUSE – AGREEMENTS ON CHARTER – ARBITRATION

In March 2022, a vessel sustained propeller damage on the way to its first load port, leading to the charter party cancellation through force majeure.  Charterers did not initiate arbitration proceedings until over a year later in April 2023. The dispute focused on whether arbitration proceedings were time-barred. Charterers contended that the one-year time bar did not apply due to circumstances surrounding the voyage’s cancellation.  

London Arbitration 17/23

TIME CHARTER – INTER-CLUB AGREEMENT – DISCHARGE TO THREE RECEIVERS – CARGO SHORTAGE – OVER DISCHARGE – DETAINED BY RECEIVERS – OFF HIRE – REIMBURSEMENT OF CREW BONUS FOR DANGEROUS WATERS

Disputes in a wheat transport time charter from Ukraine to East Africa involved cargo shortage claims, off-hire due to port delays, and crew bonus issues under an amended NYPE 1946 form. Owners sought $2278K in unpaid hire fees, while charterers counterclaimed for $31K.

Marchand Navigation Co v Olam Global Agri Pte Ltd and Another –Singapore High Court – 29 Nov 2023

BUNKERS – MARITIME LIEN – DEMURRAGE DEBT – ARBITRATION CLAUSE – SUB-CHARTER – NYPE FORM – VOYAGE CHARTER – FAILURE TO PAY HIRE – ARREST

The MARIA THEO I was chartered by Sinco from disponent owners, Marchand Navigation Co. on a NYPE form under English law and with the arbitration in London. Sinco then sub-chartered the vessel to Olam under a voyage charter. Olam incurred demurrage charges, which they agreed to pay Sinco, however, Marchand exercised a lien against Olam, stating breach of the charterparty by Sinco for the failure of Sinco to pay hire and for unpaid bunkers.

London Arbitration 6/24

TIME CHARTER – NYPE 93 FORM – FAILURE TO TENDER NOR FOR FIVE DAYS – DELAY TO TENDER NOR – LIABILITY OF OWNERS FOR DEMURRAGE NOT EARNED UNDER SUB-CHARTER – CLAUSE 8 – NEGLIGENCE OF AGENTS – DEMURRAGE

On a voyage chartered under an amended NYPE 93 form, a dispute arose due to the master’s delayed submission of the Notice of Readiness (NOR), leading sub-charterers to contest the commencement of demurrage. Owners contended that the delay was neither deliberate nor negligent, attributing any loss to negligence on the part of the Charterers’ agents. Charterers argued that the master’s failure constituted a breach of contract and negligence.

RTI Ltd v MUR Shipping BV – UK Supreme Court – 15 May 2024

APPEAL – US SANCTIONS – CONTRACT OF AFFREIGHTMENT – FORCE MAJEURE AFFECTING DELAY IN LOADING AND DISCHARGE – REASONABLE ENDEAVORS – DOLLAR PAYMENTS REQUIRED BY THE CONTRACT – OFFER TO PAY IN EUROS – OVERCOMING SANCTIONS

MUR Shipping sought to overturn a previous decision by the Court of Appeal by focusing on a force majeure clause in their contract with RTI. MUR invoked force majeure due to US sanctions preventing payments in dollars. The appeal examined contractual clarity, contractual rights, and the application of force majeure clauses.