Category: English Maritime Cases

London Arbitration 17/14

NYPE -- TIME CHARTER -- PERFORMANCE SUSPENDED FOR UNPAID HIRE -- WHETHER OWNER REQUIRED TO SERVE ANTI-TECHNICALITY NOTICE -- WHETHER OWNER ENTITLED TO EXERCISE LIEN ON CARGO -- Owner Award This dispute arose under a trip charter from U.S. to China, where Owner suspended performance of contract due to outstanding hire, resulting in delays to discharge and additional hire until the redelivery date as Owner ordered the vessel to anchorage to wait. Charterer refused to pay the additional hire claiming that the vessel was off-hire during time spent at anchorage and Owner was liable for damages by depriving Charterer of service.
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London Arbitration 16/14

NYPE -- TIME CHARTER -- LATE DELIVERY AND CREW CHANGE -- FAILURE TO PAY HIRE -- RIGHT TO WITHDRAW VESSEL -- REPUDIATORY BREACH -- DAMAGES -- Owner Award Charterer failed to make several hire payments and failed to reimburse bunker costs causing the Owner to withdraw the Vessel on the basis of Charterer’s repudiatory breach. Conversely, Charterer claimed that Owner’s withdrawal was improper because it was not in compliance with the governing term and asserted that Owner was in repudiatory breach by not following their voyage orders. Charterer counterclaimed for damages owing to the Vessel’s late delivery causing a missed cargo opportunity and rejected liability for hire when Owner failed to follow their voyage orders.
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London Arbitration 13/14

GENCON -- BERTH CHARTER -- VESSEL DELAYED REACHING LOAD PORT OWING TO ICE -- WHETHER NOTICE OF READINESS VALID -- ERRONEOUS OVERPAYMENT -- LAW OF RESTITUTION -- Partial Charterer Award This dispute arose under a voyage charter fixed to load end-January at Rostov-on-Don, Russia wherein a special Ice Clause was incorporated. The Vessel subsequently incurred excessive delays reaching the load port owing to ice, both at the ice edge and while in the ice. The validity of the Vessel’s Notice of Readiness tendered from the anchorage where she was ordered (400 miles from the port) was also at issue. Owner brought arbitration proceedings to collect outstanding demurrage or, alternatively, damages for detention; and, Charterer counterclaimed for an erroneous overpayment.
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London Arbitration 18/14

NYPE -- TIME CHARTER -- SPEED AND PERFORMANCE -- BOTTOM FOULING -- RISK UNDER DIRECT CONTINUATION -- STEVEDORE DAMAGE -- Partial Owner Award Under the first trip charter the Vessel was forced to remain at the loadport anchorage for 48 days before sailing to the discharge port. Due to the extended delay, the high temperature waters caused bottom fouling that impacted her performance under two separate charters that were in direct continuation. At issue is whether the Owner breached the performance warranty under both trip charters and who is responsible for the hull cleaning costs.
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American Overseas Marine Corporation v. Golar Commodities Ltd (The “LNG Gemini”) – QBD (Comm. Ct.), 7 May 2014

TIME CHARTER -- INJURIOUS CARGO DEFINED -- DEBRIS IN PUMPS AND TANKS -- Charterer Award Under a time charter contract, the Vessel loaded a cargo of LNG for the Charterer’s account. After the operation, it was reported that debris could have been introduced into the cargo tanks, however nothing was noticeably wrong at the time. During the course of the following voyages, intermittent problems accumulated until the Vessel had to undergo extensive repairs. Owner blamed the Charterer’s cargo and filed a damages claim to recover their losses.
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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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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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Geden Operations Ltd. v. Dry Bulk Handy Holdings Inc. (The “Bulk Uruguay”) – QBD (Comm. Ct.), 28 Mar 2014

NYPE -- ANTICIPATORY BREACH -- WHETHER CHARTERERS ENTITLED TO GIVE VOYAGE ORDERS TO TRANSIT GULF OF ADEN -- OWNERS ASSERTING THAT PERMISSION REQUIRED -- WHETHER OWNERS IN REPUDIATORY BREACH -- Owner Award At dispute is whether Charterer was entitled to terminate the time charter contract with the Disponent Owner because permission by the head owner was required if Charterer instructed the Vessel to transit the Gulf of Aden (GOA) – an area of piracy for which additional war risk premium was payable. Although GOA transit ability was a hard requirement by Charterer in the time charter negotiations with the Disponent Owner, it was not stipulated in the contract between Disponent Owner and head owners.
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London Arbitration 11/14

WHETHER VESSEL "IN EVERY WAY FITTED FOR THE VOYAGE" -- SUITABILITY OF VESSEL’S MOORING EQUIPMENT FOR THE LOADING INSTALLATION -- REPUDIATORY BREACH -- DETENTION AND DAMAGES -- Charterer Award The Vessel arrived at loadport without the necessary equipment to operate safely at the shipper’s loading installation. Charterer cancelled the charter after the Vessel was viewed as unfit for the voyage. Owner claimed damages for Charterer’s rejection.
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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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