Dann Marine Towing v Amerex Trading Group (The “TURQUOISE COAST”) – SMA No. 4471– 31 January 2024
Dann Marine Towing, L.C. sought damages for breach of a Time Charter Party dated April 25, 2023, for the M/V TURQUOISE COAST and Barge DMT 140, with Amerex Trading Group LLC. The damages included unpaid charter hire for 69 days from April 25, 2023, to July 3, 2023, totaling $1,828,500 at a daily hire rate of $26,500, fuel costs amounting to $44,745.25, lube oils expenses of $1,923.04, mooring costs of $16,728.00, pre-award interest, and costs, reasonable attorney’s fees, and expenses. Amerex did not participate in the proceedings.
The dispute involved the chartering of an articulated tug/barge (ATB) by the Amerex from Dann Marine. The ATB, consisting of M/V TURQUOISE COAST and Barge DMT 140, was to be used for a 12-month contract with PEMEX to transport crude oil from Mexico to Texas refineries. The charter, signed on April 22 and 25, 2023, required an advance hire payment of $4,823,000, which Amerex failed to make despite multiple promises and extensions granted by Dann Marine.
Amerex repeatedly assured the Dann Marine that the payment would be forthcoming but never fulfilled these assurances. On May 26, 2023, Amerex requested an extension to May 31, 2023, and guaranteed payment for 30 days’ hire. However, the payment was never made. By June 2, 2023, Dann Marine demanded the release of the chartered vessels and acknowledgment of unpaid hire, but Amerex did not respond.
A Notice of Breach was sent on June 12, 2023, detailing Amerex’s default and outstanding amounts. Arbitration was initiated on June 23, 2023. To mitigate damages, Dann Marine re-chartered the vessels to third parties starting July 1, 2023, and continued to enter into subsequent charters in July and August 2023.
The arbitration concerned Amerex’s breach of a charter agreement, failing to make the required six months’ advance hire payment of $4,823,000, and other expenses, including fuel, lube oils, and mooring. The charter, signed on April 25, 2023, stipulated a daily hire rate of $26,500 for the vessels M/V TURQUOISE COAST and Barge DMT 140, from delivery until redelivery. Despite assurances and extensions, Amerex did not make the advance payment.
Dann Marine initiated preparations for the contract, including fueling the vessels and navigating them toward their loading port in Mexico, relying on Amerex’s commitments. Amerex’s failure to pay led Dann Marine to seek recovery for the period from April 25 to July 3, 2023, when the vessels were delivered to a new charterer. The Panel confirmed the charter’s start date as April 25, 2023, noting that Amerex’s president had waived the delivery notice.
Award
The Panel awarded Dan Marine $1,828,500 for the 69 days of unpaid hire, plus $44,745.25 for fuel, $1,923.04 for lube oils, and $16,728.00 for mooring expenses, holding that Amerex’s obligations did not end until the vessels were redelivered on July 3, 2023.