Category: U.S. Maritime Cases

Navion Shipping AS v. Citgo Petroleum Corp. (The “Torm Gunhild”) – SMA No. 3863, 25 Aug 2004

ASBATANKVOY -- LOADPORT -- CHARTER PARTY -- BERTH -- CARGO -- DEMURRAGE -- ARBITRATION -- TANK CLEANLINESS -- Charterer Award Upon arriving at loadport after a new cargo revision in the Charter Party, the Vessel was kicked off of berth because of survey results revealing that the Vessel’s tanks were insufficiently cleaned for the revised cargo. The Owner submitted demurrage for the cleaning costs and delays arguing that the tanks were acceptable for the original cargo.
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Chembulk Trading LLC v. Cendian Corp. (The “Chembulk New York”) – SMA No. 3868, 2 Dec 2004

ASBATANKVOY -- CHARTER PARTY -- DEMURRAGE -- TERMINAL LOGS -- TIME-BAR -- Charterer Award This case’s Charter Party clearly stipulates that there are no grounds for demurrage unless the claim (along with supporting documentation) is received within ninety days of cargo discharge. So when the Owner submitted a claim on the ninetieth day without the specifically outlined terminal logs, the Charterer deemed the demurrage time-barred by the Charter Party.
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Marbulk Shipping, Inc. v. Martin Marietta Materials, Inc. (The “Bahama Spirit”) – SMA No. 3849, 4 Jun 2004

CONTRACT OF AFFREIGHTMENT -- BERTH -- DISPORT -- DREDGE PIPE -- CHANNEL -- GROUNDING -- ARBITRATION -- UNSAFE BERTH -- Charterer Award While moving to berth at disport, the Vessel ran aground on an abandoned dredge pipe in the navigation channel. The Owner followed suit with an arbitration charge for the damages sustained in the grounding, claiming that the Charterer had breached the safe berth warranty. The Charterer counterclaimed that the Owner faulted the grounding citing the Owner’s frequent usage of the port in the past as well as the lack of prior Owner proof that the berth was unsafe.
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Global Container Lines, Ltd. v. The Rice Co. (The “Berrak N.”) – SMA No. 3850, 23 Jun 2004

NORGRAIN 89 -- CHARTER PARTY -- GOVERNMENT CURFEW -- CARGO -- DEMURRAGE -- BERTH -- DISPORT -- Owner Award The Charter Party specifically stated that if cargo cannot be discharged because of "Civil Commotions," then there cannot be any demurrage claim for lost time. But, when the Vessel berthed at disport and a national curfew was in place, the Owner filed for demurrage regardless arguing that the curfew did not prevent the cargo from being discharged, but instead the subsequent lack of trucks leaving the port was the root cause of detainment.
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Odfjell Asia Pte. Ltd. v. Vinmar Singapore Pte. Ltd. (The “Bow Marino” & “Bow Giovanni”) – SMA No. 3853, 28 Jun 2004

ASBATANKVOY -- ARBITRATION -- PUMP WARRANTY -- MANIFOLD -- DEMURRAGE -- LATE PAYMENT -- PUMP WARRANTY -- Owner Award This arbitration centers around the finer aspects of the pump warranty. In this case, the Charterers argue that the agreed pressure at the Vessel’s manifold was not maintained throughout the unloading. The Owners, on the other hand, stipulate that the referenced pressure drops were at the beginning and end of discharge, a common safety and loss prevention practice.
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Masefield Trading, AG v. Shell Oil Company – SMA No. 3855, 30 Jul 2004

SALES CONTRACT -- SHIPPING -- DEMURRAGE -- ARBITRATION -- DETENTION -- PORT -- CARGO -- VETTING -- Buyer Award The Buyer preliminarily contacted the Seller to ask if the Vessel characteristics agreed with Seller requirements for shipping. After granting approval, the Seller allegedly sent documents stipulating that the agreement was conditional on whether the Vessel had an operating VR system. However, the Buyer never received such stipulations and submitted demurrage for delays at port when the Seller refused Vessel loading without VR.
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Gulfcoast Transit Co. v. Russian Farm Community Project (The “Litrico”) – SMA No. 3836, 14 Apr 2004

BALTIMORE GRAIN CP -- DISPORT -- BERTH -- ARBITRATION -- LAYTIME -- PORT -- Partial Owner Award Although blocked by disport by seventeen miles of ice, the Vessel tendered NOR and awaited icebreaker assistance for five days before continuing to berth. At arbitration, the Owners view the NOR as a valid beginning of laytime and any further delays at port were the fault of the Charterers. The Charterers counterclaimed that an NOR tendered seventeen miles from port limits cannot be considered valid.
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Odfjell Seachem AS v. Vinmar International Ltd. (The “NCC Arar”) – SMA No. 3837, 21 Apr 2004

ASBATANKVOY -- DEMURRAGE -- ARBITRATION -- TIME-BAR -- BARGE -- DISPORT -- CLAIM -- Owner Award In this case, there were four separate demurrage issues under dispute. Arbitration disputes focused on the time-bar clause, the allocation of time spent overloading the Vessel and subsequent reloading, delays waiting for the Charterer’s barge at disport, and the Owner’s right to increase a claim.
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Petroleo Brasileiro, SA v. Citgo Petroleum Corp. (The “Kriti Art”) – SMA No. 3838, 23 Apr 2004

ASBATANKVOY -- DISCHARGE -- PORT -- DRAFT -- DEMURRAGE -- ARBITRATION -- Charterer Award The Vessel was required to discharge at two separate ports, however, the draft was erroneously calculated to only accommodate the deeper port. And upon arrival at the deeper port, the berth was occupied by another vessel thereby detaining the Owner’s Vessel. So in response to Owner’s subsequent demurrage, the Charterers blame the erroneous draft level for the delay because otherwise the Vessel could discharge at the shallower (but unoccupied) port first.
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Lakeview Maritime Ltd. v. Citgo Petroleum Corp. (The “Astro Altair”) – SMA No. 3841, 29 Apr 2004

ASBATANKVOY -- ARRIVAL DRAFT -- DISPORT -- DEMURRAGE -- DRAFT -- CHARTER PARTY -- LAYTIME -- ARBITRATION -- Charterer Award Although the Charterers assured that an arrival draft of forty feet was acceptable, tidal changes delayed the Vessel’s arrival to disport. The Owners submitted a claim for demurrage arguing that the Charterers draft levels kept the Vessel from reaching disport. But the Charterers reference a clause in the Charter Party which states that tidal delays cannot count as laytime in arbitration.
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