Category: English Maritime Cases
BPVOY3 – FREIGHT RATE CALCULATION DISAGREEMENT – WHETHER RATE IS TO BE DETERMINED BASED ON COMPLETE VOYAGE – Owner Award
A charterparty was negotiated for a voyage from a predetermined load port to one or two discharge ports with an addendum regarding the freight rate calculation. A disagreement ensued over the wording of addendum to how freight should be calculated; namely, whether the rate should be determined by taking into account the voyage in its entirety.
TIME CHARTER - CHARTERER’S FAILURE TO PROVIDE OR REFUND BUNKERS UPON REDELIVERY - WHETHER OWNER OBLIGATED TO MITIGATE LOSS - Owner Award
A vessel was time chartered with the provision that Charterer would supply bunkers before redelivery. When Charterer was unable to pay for bunkers upon redelivery and further failed to reimburse Owner for when Owner arranged and paid for the bunkers, Owner commenced arbitration. In turn, Charterer claimed Owner failed to mitigate losses when Owner allegedly wasted 2 days arranging the bunkers.
FOB SALE - VALIDITY OF SUBSTITUTE VESSEL’S NOMINATION - PRE-ADVICE AND NOMINATION PROVISIONS - WHETHER BUYER IN REPUDIATORY BREACH OF CONTRACT - Seller Award
Buyer nominated a substitute vessel one day before the original vessel was to arrive and load her cargo. Seller rejected both vessel nominations and cancelled the contract basis Buyer’s repudiatory breach of the provisions laid out in the contract. A GAFTA tribunal ruled one way, a board in another, whilst in this instance the the High Court supported the GAFTA tribunal.
CONTRACT OF AFFREIGHTMENT - CHARTERER’S FAILURE TO NOMINATE CARGOES - OWNER A DISPONENT OWNER - ASSESSMENT OF OWNER’S LOSS - Owner Award
A three year contract of affreightment was fixed to ship bulk commodities between 2009-2011. The global financial crisis caused Charterer to breach the COA by not nominating cargoes. Arbitrators would find that Owner had suffered no loss due to their utilization of third party companies to receive inward freight from the COA as well as pay outward freight to head owner. This decision was appealed by Owner with the intention being to prove Owner’s entitlement to $3 million in lost freight due to charterer’s breach.
On 28 June 2017 the Supreme Court overruled the Court of Appeal and reinstated the Comm. Court’s ruling. I.e. After repudiating the charter party, charterer is not entitled to a credit for the difference in diminished value between when the vessel was sold in 2007 versus had it been sold in 2009 when it was to have been redelivered. NYPE – TIME CHARTER – ANTICIPATORY BREACH – EARLY REDELIVERY – WHETHER A MARKET AVAILABLE IN WHICH TO MITIGATE LOSS – CAUSATION – Charterer Award While under a time charter the vessel was redelivered two years early. An arbitrator found in favor of...
NYPE – TIME CHARTER – IFO HS RE-DELIVERY VALUE This arbitration award dealt with six issues yet only one is pertinent to TANKVOYager. Specifically, after the completion of the voyage, the Vessel was redelivered to the Owner with 272 MT IFO HS that the Charterer had purchased. The Charterer argued that they should be reimbursed for the bunkers at the charter party rate whereas the Owner claimed the bunkers should be priced at the market rate at the redelivery location. [dropcap]P[/dropcap]rior to redelivery the master had requested 450 MT of IFO HS, and although questioning whether this was too much, Charterer...
GENCON 1976 - REDUCED DISCHARGE RATE - FORCE MAJEURE - DEMURRAGE - Owner Award
During unloading, the Vessel was directed to vacate the dock and wait until the berth once again became available. After a month of waiting, she was called back in and completed her discharge. Charterer rejected the resultant demurrage claim under the auspices that the unloading rate was reduced due to the ingress of water, the berth’s inefficiency in unloading was a force majeure event, and the removal of the Vessel from the berth by the port authority was a force majeure event.
NYPE TIME CHARTER – SPEED AND CONSUMPTION WARRANTY – HOW LONG MUST A PERIOD OF GOOD WEATHER BE – ERROR OF LAW – Charterer Award
Under a time charter, an arbitration panel defined a “good weather day” as being 24 consecutive hours from noon to noon. As there were no noon to noon periods of good weather, the panel dismissed charterer’s claim for poor performance. The charterer appealed basis the panel having made errors of law.
TIME CHARTER - CHARTER PROVIDING FOR LAYCAN TO BE BACK-TO-BACK WITH SHIPBUILDING CONTRACT - WHETHER CHARTERER FULFILLED OBLIGATIONS TO OWNER WHEN CANCELLING CHARTER - Charterer Award
Charterer cancelled the time charter under the interpretation that its right to cancel was “back-to-back” with owner’s shipbuilding contract. Owner disagreed that “back-to back” referred to its right to cancel in the shipbuilding contract leaving owner to claim a repudiatory breach of contract. Charterer in turn sought a declaration that it was entitled to cancel while owner counterclaimed for damages.
GENCON 94 – CHARTERER PAYS BUNKERS AND DISCHARGE PORT DISBURSEMENTS TO COMMENCE VOYAGE AFTER DISPONENT OWNER REFUSES TO PAY HEAD OWNER – CHARTERER CLAIMED DAMAGES FROM DISPONENT OWNER – Charterer Award
The head owner of the vessel asked the disponent owner to render payment for bunkers and discharge port disbursements before the commencement of the voyage. After the disponent owner did not comply, the charterer made payment in order to avoid further delay. The charterer then claimed damages against the disponent owner after the completion of the voyage.
