Category: U.S. Maritime Cases
NYPE -- SUBCHARTER -- SUBPOENAS -- REQUEST FOR DOCUMENTS -- CONSOLIDATION OF DISPUTES -- Partial Owner Award
The Vessel suffered severe damage allegedly caused by stevedore negligence, and Owners commenced arbitration to recover damages. Charterers contended that they had no first-hand knowledge of the incident, as the Vessel was under sub-charter at the time. Charterers subsequently requested arbitration against their sub-charterer and requested that the Panel consolidate all parties into one proceeding.
TIME CHARTER -- LATE REDELIVERY -- REQUEST FOR CONSOLIDATION -- COMMON QUESTION OF LAW -- Partial Charterer Award
While under a time charter, the Vessel was sub-chartered for a single voyage. During the single voyage, the time charter expired and the Vessel was delivered late. Owners attempted to consolidate their arbitration claim for damages against both the time charterer and the sub-charterer, citing SMA rules which allow for same when the dispute against all parties involves the same common question of law. The ruling explains why the Panel rejected Owners request for consolidation.
GENCON -- VESSEL ARRESTED WHILE AWAITING BERTH -- FORCE MAJEURE -- HURRICANE -- STORM -- WEATHER -- GROUNDING -- DEMURRAGE -- Owner Award
Although the loading operations were uneventful, the discharge on the Mississippi River was delayed due to a recent hurricane (Katrina) as well as the threat of another hurricane (Rita). Charterers declared force majeure, and, in the event that the Panel did not agree, also argued that the demurrage claim should be reduced during an eight day period that the Vessel was under arrest. The award explains why the Panel upheld the Owners claim in full, despite the arrest and a grounding incident.
ASBATANKVOY -- DELAY -- FAILURE TO PROSECUTE -- DISMISSAL -- Partial Owner Award
The Charterer began arbitration to recover damages resulting from an Owner breach of contract and demanded for an immediate partial reward. However, the Charterer delayed to prosecute the manner beyond the claim’s submission and after eight years of delayed prosecution, the Owner moved to dismiss the case.
ASBATANKVOY -- SHORTLOADING -- WITHHELD FREIGHT -- TWO BOTTOMS -- DAMAGES -- Owner Award
In compensation for damages (specifically shortloading, an address commission on freight issue, legal and administrative costs) incurred by the Owner, the Charterer made an unauthorized freight deduction from the contracted pay amount. In the partial award of SMA No. 3965, the sole arbitrator ruled that the withheld freight and the claim for damages would be addressed in two different rulings. The withheld freight was addressed in the aforesaid partial award and the remaining items are discussed herein.
ASBATANKVOY -- PUMP WARRANTY -- INTEREST ON UNDISPUTED DEMURRAGE -- ASDEM PUMPING PERFORMANCE EQUATION -- Charterer Award
Because the Vessel did not meet the pump warranty at disport, the Charterer rejected any excess pumping time billed to them by the Owner. The Owner argued that the terminal was incapable of receiving the cargo at the contracted rate and therefore made a reduced claim for pumping time basis the ASDEM Pumping Performance equation.
ASBATANKVOY -- SHORTLOADING -- WITHHELD FREIGHT -- TWO BOTTOMS -- DAMAGES -- Partial Owner Award
In light of Owner violations to the voyage charter by splitting the cargo onto two vessels,, the Charterer made an unauthorized deduction from Owner’s freight payment to compensate for damages incurred during voyage. At arbitration, the Owner believed that the withheld freight payment and the Charterer’s damages should be treated as separate issues.
ASBATANKVOY -- CARGO -- COA -- FAIRLY EVENLY SPREAD -- SPOT MARKET RATE -- CARGO NOMINATION REJECTED -- FAIRLY EVENLY SPREAD -- Charterer Award
The Owner refused to nominate a vessel to lift the final COA cargo tonnage on the grounds that a third voyage in one month violated the contracted "fairly evenly spread" nomination requirement. The Charter subsequently had to load the remaining cargo at the substantially higher spot market rate and began arbitration to recover the resulting losses.
ASBATANKVOY -- CHARTER PARTY -- ARBITRATION -- TANK CLEANLINESS -- WRONGFUL CANCELLATION -- Charterer Award
Upon the Vessel’s arrival at loadport, the Charterers’ inspector rejected the Vessel due to excess rust and tank lining deterioration. The Vessel crew attempted to clean the tanks over laycan, but ultimately could not meet the inspector’s minimum standards, so the Charterers subsequently terminated the charter party. The Owners refuted the cancellation by claiming that the expected standards were unjust and began arbitration for losses.
TRUCKER STRIKE -- CONSEQUENTIAL DELAYS -- WORK SLOW-DOWN -- BURDEN OF PROOF -- Charterer Award
Due to a trucking strike at disport, the discharge operation was protracted, causing the Vessel to incur demurrage. The Charterer refuted the demurrage claim, citing that the strike was out of their control, and therefore, exempt from demurrage fees. On the other hand, Owner argued that the Charterers had not satisfied their obligation to search for alternative means of discharge.
