Category: English Maritime Cases

London Arbitration 7/10

NYPE -- CLEANLINESS OF HOLDS -- VESSEL FIT FOR SERVICE -- OFF-HIRE -- Owner Award The Vessel was approved for the first voyage under a time charter and carried out the first voyage without incident. Prior to the second voyage, the holds were rejected due to stains from a cargo carried just prior to the commencement of the time charter. After five days of cleaning, the holds were approved. In dispute is Charterer's claim for off-hire and expenses during the cleaning.
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Cosco Bulk Carrier Co. Ltd. v. Team-Up Owning Co. Ltd. (The “Saldanha”) – QBD (Comm. Ct.), 11 June 2010

NYPE -- PIRACY -- CHARTERPARTY LANGUAGE -- WHETHER VESSEL CAN BE CONSIDERED OFF-HIRE -- Owner Award Charterer appealed to have all time that the Vessel was held by pirates count as off-hire. The High Court examined whether the Vessel was prevented from working due to any of the three causes listed in the charter party: a) detention by average accidents to ship or cargo; b) default and/or deficiency of men; c) any other cause.
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Emeraldian Ltd. Partnership v. Wellmix Shipping Ltd. and Anr (The “Vine”) – QBD (Comm. Ct.),17 June 2010

BREACH OF SAFE PORT WARRANTY -- BEYOND CHARTERER'S CONTROL -- WHETHER DELAY COUNTED AS LAYTIME -- DEMURRAGE -- Owner Award After nominating the loadberth an accident occurred forcing its closure for repairs. Owner claimed demurrage for the time spent by the Vessel awaiting the repair of the berth, but Charterer refuted the claim basis the notion that the accident was beyond Charterer’s control. In addition, the Court was asked to determine whether the berth was safe at the time it was nominated due to the complex mooring maneuvers required in order for vessels to safely berth.
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SK Shipping (S) Pte. Ltd. v. Petroexport Ltd. (The “Pro Victor”) – QBD (Comm. Ct.), 24 Nov 2009

ASBATANKVOY -- WRONGFUL CANCELLATION -- ANTICIPATORY BREACH -- Owner Award On the first day of laydays, without expressly saying so, Charterer is alleged to have cancelled the fixture after the Buyer pulled out of the deal. At issue was whether Owner acted properly in terminating the charter party and claiming damages.
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Dalwood Marine Co v. Nordana Line AS (The “Elbrus”) – QBD (Comm. Ct.), 21 Dec 2009

NYPE 1993 -- TIME CHARTER -- EARLY REDELIVERY -- WRONGFUL CANCELLATION -- CALCULATION OF DAMAGES -- Charterer Award After Charterer prematurely cancelled a time charter, Owner secured a lucrative replacement contract. In determining Owner's damages, Charterer argued that the profits from the replacement contract should be weighed as a whole against the lost revenue from the early redelivery.
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Sylvia Shipping Co. Ltd. v. Progress Bulk Carriers Ltd. (The “Sylvia”) – QBD (Comm. Ct.), 18 Mar 2010

NYPE -- FAILED PORT STATE INSPECTION -- MISSED LAYDAY WINDOW -- FORESEEABILITY OF DAMAGES -- REMOTENESS OF DAMAGES -- Charterer Award Because the Vessel failed a Port State Inspection due to structural deficiencies and was detained until Owner could affect repairs, Charterer missed a layday window with a sub-charterer. Charterer sought to recover lost profits in arbitration and won. Owner appealed and the Judge considered whether the Charterer’s damages were unforeseeable, too remote, or erroneously derived.
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Novologistics SARL v. Five Ocean Corporation (The “Merida”) – QBD (Comm. Ct.), 27 Nov 2009

BERTH OR PORT CHARTER -- WAITING TIME -- CHARTERPARTY CONSTRUCTION -- ONE SAFE BERTH -- Charterer Award With no incorporation of a proforma charter party form, at issue was whether the fixture constituted a berth charter or port charter. The key terms considered include "one good and safe Charterer’s berth" in conjunction with other clauses addressing a safe port warranty and shifting time. In overturning the arbitration award, the Court examined the fixture terms and explained contract construction.
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AET Inc. Ltd. v. Arcadia Petroleum Ltd. (The “Eagle Valencia”) – QBD (Comm. Ct.), 8 Oct 2009

SHELLVOY 5 -- NOTICE OF READINESS -- FAILURE TO OBTAIN FREE PRATIQUE WITHIN 6 HOURS -- Owner Award With the charter party fixed on an amended Shellvoy 5 form inclusive of "Shell Additional Clauses – February 1999", this dispute hinged on whether the Vessel’s NOR was valid in light of the fact that Free Pratique was not granted within six hours as specified within Shell Additional Clause 22.
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Cobelfret Bulk Carriers NV v. Swissmarine Service SA (The “Lowlands Orchid”) – QBD (Comm. Ct.) 13 Nov 2009

CHARTERPARTY LANGUAGE "SHINC" -- SUPER HOLIDAYS -- ADDITIONAL CLAUSE SUPERCEDING PRO-FORMA – DESPATCH – DEMURRAGE -- Charterer Award This laytime dispute hinged on the interpretation of a fixture recap term, SHINC (Sundays and Holidays included), in conjunction with the terms of the underlying charter party form. The underlying charter party Clause 63 stipulated "Sundays and Holidays included", followed by the phrase, “…excluding Super Holidays”. At issue is how the contract should be interpreted specifically relating to the terminal shutdown during the Christmas holiday period.
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London Arbitration 1/09

GENCON -- WHARFAGE AND WATCHMEN FEES FOR EXTENDED DISCHARGE TIME -- DEMURRAGE AS JUST COMPENSATION -- DELAYS BEYOND CHARTERER’S CONTROL -- Partial Charterer, Partial Owner Award This award follows up an earlier decision under London Arbitration 23/07 for the same voyage, and addresses two new points: 1) who is responsible for dues paid by Owner resulting from the delayed discharge; and, 2) whether time is interrupted for discharging delays that are beyond Charterer’s control e.g. awaiting shoreside equipment and personnel.
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