Category: English Maritime Cases

London Arbitration 19/07

GENCON -- NOR VALIDITY -- TENDERED PRIOR TO LEGALLY BEING ABLE TO ENTER THE PORT -- LOCAL AUTHORITIES -- DEMURRAGE -- Charterer Award The Vessel arrived and tendered NOR at the Libyan discharge port despite not having received permission to discharge from the Libyan Port Authority. Four days after arrival, permission was granted. The Vessel had missed her turn at berth, and the port had closed for a period due to inclement weather. The Charterer rejected both the NOR and the subsequent demurrage claim. The award explains the consequences for the Owner for failing to re-tender NOR after receiving permission to discharge.
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London Arbitration 20/07

NYPE -- TIME-CHARTER -- SPEED WARRANTY -- BUNKER CONSUMPTION -- CHARTERPARTY LANGUAGE -- APPLICATION OF MARGIN FOR "ABOUT" -- EXERCISE OF LIEN OVER CARGO (OFF HIRE) -- Partial Owner, Partial Charterer Award The Panel in this dispute was called on to determine the amount recoverable by Charterers under a time charter for the Vessel's underperformance in the warranted speed and for the over-consumption of bunkers. The award details how the Panel calculated the damages.
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London Arbitration 21/07

ASBATANKVOY -- BILL OF LADING -- NOR TENDERED OUTSIDE PORT LIMITS -- "QUICK DEPARTURE" PROCEDURE -- PIRACY -- Owner Award Charterers presented two complaints against the Owner in this arbitration. The first was regarding a "quick departure procedure" in which a verbal agreement was made between Charterer's and Owner's agents, for the Vessel to sail the loadport without a copy of the bill of lading onboard. The second was regarding the Vessel's location when she tendered NOR at the Nigerian discharge port. The award details why the Panel rejected any agreements made by agents, and how the threat of piracy off the shore of Nigeria affected the Panel's ruling on what constituted a valid NOR.
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London Arbitration 15/07

TIME CHARTER -- SPEED WARRANTY -- CONSUMPTION WARRANTY -- SPEED CALCULATION -- SEA CURRENT FACTOR -- WEATHER FACTOR -- FAVORABLE CURRENTS -- Owner Award This arbitration concerns the interpretation of the time chartered Vessel’s speed and consumption warranties, specifically, if the Vessel's actual speed performance be reduced by taking beneficial sea currents into account.
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ERG Raffinerie Mediterranee SpA v. Chevron USA Inc. (The “Luxmar”) – Court of Appeal, 22 May 07

SALES CONTRACT -- CARGO -- BREACH -- WRONGFUL CANCELLATION -- MEANING OF LAYCAN IN SALES CONTRACT -- Seller Award In this contract, the Buyer had to nominate a performing Vessel for the voyage, narrow the laycan to a two day period, and then the Seller would have to load the Vessel in 36 + 6 hrs. The Buyer performed all contracted requirements; however, upon arrival, the Seller’s plant was unable to supply cargo within the contracted load window. The Buyer subsequently claimed that the Seller violated the contract and canceled the transaction.
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London Arbitration 18/07

GENCON -- DETENTION -- VESSEL MASTER -- DELAYED LAUNCH FOR CARGO INSPECTOR -- Owner Award Although several issues were disputed in arbitration, only the detention claim item will be recapped. The Owner filed for detention damages when the Vessel was delayed at port because there was no launch available for the port’s inspector after nightfall. The Charterer, however, contended that it was customary at the given loadport for the vessel master to be responsible for such launches.
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STX Pan Ocean Co Ltd v. Ugland Bulk Transport AS (The “Livanita”) – QBD (Comm. Ct.), 6 Jun 2007

NYPE -- HULL DAMAGE -- ICE -- ANCHORAGE -- SAFE PORT WARRANTY -- CHARTER PARTY CONSTRUCTION -- Owner Award En route from disport, the Vessel suffered hull damage from ice and the Owner submitted a claim for damage compensation. The Charterer contended that ice was an obvious expectation at this specific disport during the winter, and therefore, the risk was borne by the Owner upon the port’s acceptance. The Owner defended stating that the charter outlined that all berths, ports and anchorages must be safe regardless of acceptance implications.
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Golden Fleece Maritime Inc v. ST Shipping & Transport Inc (The “Elli” and “Frixos”) – QBD (Comm. Ct.), 2 Aug 07

SHELLTIME 4 -- MARPOL -- CHANGE OF INTERNATIONAL REGULATION -- TIME CHARTER -- CARGO RESTRICTIONS -- COMMERCIAL RISK -- DUE DILIGENCE -- Charterer Award This arbitration began as a result of MARPOL international regulation changes during the operating period of this specific time charter. Due to these changes, the two operating Vessels became legally unable to carry their contracted cargo. This ruling settles which party should bear the commercial risk.
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Ocean Pride Maritime Ltd. Partnership v. Quingdao Ocean Shipping Co. (The “Northgate”) – QBD (Comm. Ct.), 27 Nov 07

NOR -- TENDERED FROM OUTER ANCHORAGE -- NOR ACCEPTED UNCONDITIONALLY BY THIRD PARTY TERMINAL -- DEMURRAGE -- Owner Award The Vessel tendered her NOR to the Charterer’s agents and the Terminal from the outer anchorage within the given laycan. However, a congested berth forced her to wait at the outer anchorage for ten days, which was subsequently claimed as demurrage by the Owners. The Charterer rejected this demurrage claim and stated that because the Vessel was at the outer anchorage upon tender, the NOR was invalid. Conversely, the Owner pointed out that the Terminal unconditionally accepted their NOR.
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Transfield Shipping Inc of Panama v. Mercator Shipping Inc of Monrovia (The “Achilleas”) – Court of Appeal, 6 Sep 07

TIME CHARTER -- LATE REDELIVERY -- LOST PROFITS UNDER SUBSEQUENT FIXTURE -- LIABILITY -- Owner Award This arbitration appeal deals with the damages that a time-charterer is liable to pay to a shipowner for any late redelivery of the chartered Vessel.
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