Category: U.S. Maritime Cases
CHARTER PARTY – CANCELED – MAJOR ISSUES DURING LOADING – VESSEL BANNED FROM TERMINAL – VESSEL UNABLE TO FULLY LOAD CARGO – Charterer Award
Because of multiple terminal compliance issues the vessel was banned from berthing to load its cargo at the terminal. The charterers then canceled the charter party. Owners contended that the cancellation was invalid.
ASBATANKVOY -- DAMAGES -- COGSA -- CARGO CONTAMINATION -- BURDEN OF PROOF -- PRE-SHIPMENT CONDITION -- OWNER’S DUE DILIGENCE TO PREVENT CONTAMINATION -- DEMURRAGE -- Owner Award
Upon arrival at the discharge port, the Vessel’s onboard cargo was found to be off-spec. The Charterer concluded that the Vessel had caused the contamination and submitted a damages claim. Owner rejected the claim stating that their Vessel had met the cleaning requirements set forth by the Charterer’s surveyors at the load port and submitted a counterclaim for demurrage.
CONTAINER DEMURRAGE -- DOCTRINE OF LACHES -- STATUTE OF LIMITATIONS -- DELAYED PROCEEDINGS -- INTEREST CALCULATION -- Plaintiff Award
The Claimant’s container sat at the discharge port for a period of 4 years. During that time they issued 13 demurrage claims contemporaneously to the Cargo Merchant for the container’s running delay. However, the Defendant never paid, so once the container was returned by Customs, the Claimant brought admiralty action against the Defendant to recover those outstanding funds. As this was several years after the voyage (and a number of these claims), the Merchant argued that these claims were barred by laches.
NYPE -- GROUNDING -- SAFE PORT WARRANTY -- GOOD NAVIGATION AND SEAMANSHIP -- OFF HIRE -- REPAIR COSTS -- Charterer Award
The Vessel grounded on an uncharted reef on her approach to the discharge port, Makassar, Indonesia, causing hull damage, loss of time, additional bunker consumption and other related expenses. At issue is whether Charterer breached the safe port warranty or whether Owner failed in exercising good navigation and seamanship.
AMERICANIZED WESLSH COAL CHARTERPARTY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- LOST PROFITS -- Partial Owner Award
Despite Charterer’s ongoing promise to supply cargo, after waiting 95 days, the Owner canceled the contract. Demurrage was awarded up to the time of contract cancellation, however, Owner’s claim for lost profits did not succeed owing to a lack of supporting evidence.
CONTRACT OF AFFREIGHTMENT (COA) -- CONTRACT PRECEDENCE -- CHARTER CONSTRUCTION -- FREIGHT CALCULATION AND REIMBURSEMENT -- CARGO RELET -- Partial Owner Award
Four years into an eight-year COA, Charterer started charging security and docking fees for vessels loading/discharging at their owned, nominated berth. In a previous award, the Panel held that Charterer had established a precedent which precluded them from charging Owner for these costs on time chartered vessels. This award covers the decis spot fixed relet voyages where these costs were factored into higher freight rates against and the calculation.
GENCON -- DETENTION DUE TO VESSEL GROUNDING -- UNPAID FREIGHT BEFORE BREAKING BULK (BBB) -- CARGO LEIN -- OUTSTANDING LIABILITY -- Owner Award
Owner commenced Shortened Arbitration Procedures to recover $33K in demurrage, detention, and ancillary costs under two voyages. At issue under the first voyage concerned the Charterer’s “safe berth, safe port, always afloat” obligation as it relates to the Vessel’s grounding at the loadport, subsequent hull inspection costs, and departure delay. Under the second voyage the Owner enforced a lien on the cargo while awaiting Charterer’s freight payment and seeks compensation for detention.
AGENCY AGREEMENT -- CHOICE OF LAW -- JURISDICTION OF DISPUTE -- LEGAL AUTHORITY OF SIGNATORY -- CONTRACT AMBIGUITY -- Partial Owner Award
For over seven years, the contract partners performed under an Agency Agreement dated 1 July 2005. During that time, some issues arose with regard to the formation and legality of the Contract, whether to apply U.S. or Austrian law, as well as questions of conduct like infringements and monetary claims. In this award the Panel must determine the governing law and jurisdiction.
ASBATANKVOY -- AMBIGUITY OF OWNER NAMED IN CHARTER PARTY -- CONTRACT REFORMATION -- DEMURRAGE -- Partial Owner Award
This partial final award addresses the claimant’s right to assert a demurrage claim against Charterer, when the claimant is not expressly named as the Owner in the fixture recap. Star Tankers, as disponent Owner, filed a demurrage claim with Charterer which was rejected on the basis that the charter party names the Owner as Scerni Di Navigazion.
GENCON -- FAILURE TO PROVIDE CARGO -- BEST EFFORTS -- DAMAGES -- Owner Award
After the Vessel’s arrival at the loadport, the Charterer’s representative notified the Disponent Owner that they were unable to provide a cargo for the Vessel and had to cancel the charter party. The Disponent Owner brought arbitration proceedings against the Charterer to recover costs associated with their breach.
