Category: U.S. Maritime Cases
PETITION TO CONFIRM AWARD – CONSECUTIVE VOYAGE CHARTER – VESSEL DRY DOCKED WITHOUT MUTUAL AGREEMENT - IN TURN CARGO NOT PROVIDED – MATERIAL & REPUDIATORY BREACH – Owner Award
Owner petitioned to confirm an earlier arbitration award in which the arbitrators held that the Charterer had breached the Charter by not providing cargo for the Vessel. Charterer argued that the arbitrators had acted with complete disregard of past precedent in assessing damages against them and filed a cross-motion to vacate the award.
INTEREST ON OUTSTANDING DEMURRAGE- REBILLING COUNTERPARTIES- DELAYED PAYMENTS
Outstanding demurrage claims were not paid to the owner due to economic hardship itself caused by non-payment by charterer’s suppliers. Charterer did not deny the validity of the claims yet objected to being charged interest as same was not allowed for within the charter parties.
ASBATANKVOY – PARTIAL FINAL AWARD – PARTIAL DEMURRAGE COLLECTION -- DELAYS AT OTHER PORTS EXTENDING FROM COLLISION AND REPAIRS – Owner Award
Due to a collision in port Owner was required to repair the Vessel. Because of the delay the Owners contended that they should receive partial demurrage payment for the period after the collision. Charterer believed that a full hearing covering the entire voyage should be concluded before judgement can be passed on the demurrage from any single part of the voyage.
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.
