Category: U.S. Maritime Cases

Westport Petroleum Inc. v. Kythrea Shipping Co. Ltd. (The “LMZ Artemis”) – SMA No. 4144, 2 Sep 2011

ASBATANKVOY -- CARGO CONTAMINATION -- DELAYED DISCHARGE DUE HIGH HYDROGEN SULFIDE (H2S) VAPORS -- COGSA -- HEATING AND PURGING COSTS -- LOST PROFITS ON MISSED VOYAGE -- Partial Owner Award When a prior cargo apparently contaminated Charterer’s cargo, Charterer claimed for the cost needed to decontaminate it. Owner in turn denied Charterer’s claim and claimed demurrage incurred whilst Charterer was treating the cargo, heating and purging costs and lost profits when a subsequent fixture was cancelled as a result of the delayed discharge.
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Horizon’s Edge Excursions, LLC. v. H. Dewayne Williams (The “Stolt Azalea”) – SMA No. 4012, 19 Sep 2008

ASBATANKVOY -- WHETHER BERTH CONGESTION IS BEYOND CHARTERER’S CONTROL -- NOTICE OF READINESS PRIOR TO FREE PRATIQUE -- PRORATED LAYTIME -- Owner Award Charterer attempted to dispute Owner's demurrage claim on the basis that berth congestion was a condition beyond charterer's control per ASBATANKVOY Clause 6, time cannot commence until the vessel is in free pratique, and time spent simultaneously discharging another charterer's cargo should be prorated.
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Scope Navigation, Inc. v. Standard Tankers Bahamas Ltd. (The “Seaking”) – SMA No. 4104, 17 Dec 2010

EXXONMOBIL VOY 2005 -- INTEREST ON UNDISPUTED DEMURRAGE -- ADVERSE WEATHER -- DEPARTURE DELAY DUE TUGS -- SIGNING DOCUMENTS -- REDELIVERY OF LIGHTERAGE EQUIPMENT AND MOORING MASTER -- Partial Owner Award At issue is whether Charterer is responsible for interest on a late payment of undisputed demurrage, whether weather related delays existed within the context of ExxonMobil VOY2005's Clause 14, whether Charterer or Owner was responsible for the delay in departing berth due to a lack of tugs, whether time ceased at documents onboard or upon signing, and the assessment of time after a transshipment i.e. whether time stops at hoses off or upon the Vessel redelivering the lighterage equipment and mooring master.
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Team Tankers AS v. Lukoil Pan Americas, LLC. (The “Loukas 1”) – SMA No. 4124, 9 May 2011

EXXONMOBIL VOY 2000 -- MISSING ANCHOR -- INTERIM CLASS CERTIFICATE -- SEAWORTHINESS -- SAFE PORT -- DETENTION -- ROLE OF AGENT -- Partial Owner Award At issue is whether the Owner is in breach of the seaworthiness obligation or Charterer failed to nominate a safe port; and, the relevant assessment of demurrage and detention. Just prior to the fixture, Vessel lost 1 of 2 forward anchors. After obtaining class approval to operate with one anchor temporarily, Vessel tendered NOR at Charterer's load port, informed the Vessel's agent of the missing anchor, loaded and proceeded to the disport range of Northern Chile. After waiting several days, Vessel was instructed to the disport but the pilot refused to berth her given the port's two-anchor requirement. After a replacement anchor was fitted the Vessel encountered delays at subsequent discharge ports due to lack of tankage. In addition to demurrage, Owner claimed detention from Vessel's arrival off Chile until berthing at the first discharge berth.
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Canfornav Ltd. v. AMCI Minerals Corp. (The “Garganey”) – SMA No. 4095, 29 Oct 2010

AMWELSH -- DEMURRAGE RESULTING FROM INSUFFICIENT WATER LEVELS -- ALWAYS AFLOAT, ALWAYS ACCESSIBLE -- SHORT LOADING -- Full Owner Award Owner claimed time ran during a period when the Vessel was required to temporarily vacate the berth during loading due to insufficient water levels as the fixture warranted Vessel to load "always afloat". Charterer counterclaimed for short loading when the Vessel departed with less than the warranted “max 21,400 MT in chrts option…”
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Precious Opals Ltd. v. Helena Chartering Inc. (The “Opal Naree”) – SMA No. 4096, 29 Oct 2010

NYPE 93 -- DEFICIENT SPEED -- BUNKER VALUATION -- EARLY REDELIVERY -- PREMIUM HIRE -- OFF-HIRE -- BANK CHARGES -- Partial Owner Award This arbitration resolved a number of different disputes under a time charter. These included the calculation of the deduction for a speed deficiency, Charterer proactively deducting from hire the speed deficiency rather than claiming from Owner as stipulated by the Charter Party, early redelivery and the valuation of bunkers on redelivery, an alleged shortage of IFO during the time charter period, whether Charterer was to pay a premium whilst the Vessel cleaned the holds after the cargo requiring a premium had been discharged, off-hire calculations whilst the Vessel had a crane breakdown yet wherein no loss of time was encountered, excessive address commission being deducted from "hire" paid when redelivering early and finally, insufficient payment by Charterer as a result of “nominal” Bank Charges.
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USS Chartering LLC v. Vitol, Inc. (The “ITB Baltimore”) – SMA No. 4099, 10 Nov 2010

ASBATANKVOY -- WRONGFUL CANCELLATION OF CHARTER PARTY -- PROCEED WITH UTMOST DISPATCH -- ETAs -- CONTRIBUTORY BREACH AND EQUITABLE REMEDY -- Partial Owner Award With a two port load option, San Francisco or Los Angeles, and a strict laycan to lift cargo prior to year-end (to avoid shoreside inventory taxes), Vessel initially commenced sailing in an indirect direction. Eventually, en-route to the U.S. West Coast Charterer nominated SF as the load port only to have the Vessel’s ETA begin slipping. Fearing a late arrival and the loss of the FOB purchased cargo, Charterer directed the Vessel to LA. Given that the intended load port had been changed it becomes apparent that the laycan will be missed whereas, weather permitting, she would have made the laycan had the load port remained SF. Charterer canceled the Charter and Owner subsequently claimed for damages basis an alleged wrongful cancellation.
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Westport Petroleum, Inc. v. Falcon Carrier Shipping Ltd. (The “Falcon Carrier”) – SMA No. 4085, 9 Aug 2010

ASBATANKVOY -- JURISDICTION -- DEVIATION EXPENSE -- FAILURE TO ACCEPT FULL CARGO -- DEMURRAGE -- TIME BAR -- Charterer Award Charterer paid lump sum freight on the mother vessel basis a full cargo of 66K MT. When mother vessel could only load 63K MT, daughter vessel incurred deviation expenses when she had to return to Singapore to discharge the balance of the cargo. At arbitration, Owner questioned jurisdiction claiming Charterer failed to properly inform them of the arbitration, Charterer claimed costs of the deviation and Owner claimed demurrage which charterer claimed was time barred.
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Team Tankers AS v. Tricon Shipping Ltd. (The “Siteam Merkur”) – SMA No. 4086, 16 Aug 2010

ASBATANKVOY -- UNSEAWORTHINESS -- FREIGHT DIFFERENTIAL -- MITIGATION COSTS -- EXTRA INSPECTION COSTS -- Charterer Award An extension of SMA 4016, the central issue to be decided is whether the cargo was adequately described in the charter and whether Charterer is obliged to notify Owner as to the cargo's sensitivity to iron thereby requiring tank coatings to be intact. This Award affirms that the Q88 should reference the Vessel’s current condition as opposed to the "as built" condition and that there is a breach of the Charter Party should the Vessel’s tanks not conform with the Q88.
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Precious Ornaments Ltd. v. Helena Chartering Inc. (The “Manisamut Naree) – SMA No. 4088, 15 Sep 2010

NYPE -- TIME CHARTER -- RISK OF PIRACY -- DEVIATION AND SECURITY GUARD EXPENSE -- Owner Award Due to the prevalence of piracy, Vessel deviated to take on security experts. The Panel deemed the deviation to be a reasonable act, consistent with due diligence and good seamanship. Furthermore, the Panel considered the deviation to be in the interest of both parties and as such, the Vessel was on-hire throughout the deviation with the cost of the security personnel shared equally by Owner and Charterer.
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