Oslo Caribbean v Bethell’s Trucking – SMA No. 4477 – 14 June 2024
When the SEA CARRIER faced extensive delays at Clarence Town port awaiting safe berth / safe anchor, Oslo Caribbean was forced to invoke a lien on Bethell’s cargo and divert the vessel to another port. Bethell’s Trucking filed a counterclaim for damages, contending contract breach and wrongful termination.
Background Facts
The voyage, chartered under an amended Gencon form, was fixed March 20, 2023, for the transport of 4,800 metric tons bulk aggregate/sand from Kingston, Jamaica, to Clarence Town, Long Island, Bahamas. Loading occurred on April 13/14, 2023, with no reported issues. The Vessel arrived at Clarence Town on April 21, tendering its NOR. However, delays ensued as no barges were provided promptly for discharge. When a barge was eventually supplied, unsafe sea conditions halted the discharge attempt.
On May 2, 2023, Oslo invoiced Bethell’s $100,000 for demurrage, followed by another invoice for $225,000 on May 9. Despite this, Bethell’s counsel disputed any demurrage owed on May 11. With no discharge prospects and accumulating demurrage, Oslo exercised a lien over the cargo on May 16, demanding $323,072.85.
Claims
Oslo stated the MV SEA CARRIER was delayed at the discharge port because there was no safe place to unload the cargo. Bethell’s planned discharge to a barge, but none were available for several days. When a barge did arrive, the Vessel’s Master found the anchorage unsafe due to rough conditions. The barge eventually left for other tasks. Despite requests for unloading plans and payment, Bethell’s did not respond. Oslo then exercised a lien on the cargo and moved it to another port to unload. Oslo claimed that Bethell’s broke the contract on May 16, 2023, so their actions were justified. Oslo also sought compensation for delays, extra costs, storage fees, legal fees, and other related expenses.
Bethell’s contended that several factors should have excused or limited their liability for the delay of the MV SEA CARRIER at Clarence Town. They also filed a counterclaim seeking damages for breach of the charterparty and wrongful termination. They claimed Oslo’s timing and adequacy of ETA information affected their ability to arrange a barge on time. They also questioned the Master’s refusal to allow ship-to-barge discharge once a barge was available. Additionally, there was a dispute over laytime, with Bethell’s arguing there was no 72-hour limit for discharge and that demurrage should be a one-time lump sum, not calculated daily. Bethell’s counterclaim sought damages for the Owner’s alleged breach and wrongful termination, including losses related to their road repair obligations in Long Island, Bahamas.
Discussion
The arbitration focused on the role of Mr. David Wright of Superior Maritime Services in the chartering chain of the MV SEA CARRIER. Mr. Wright had been engaged by Bethell’s Trucking to arrange the transport of 4800 metric tons of sand and aggregate from Jamaica to the Bahamas for a road project. Bethell’s claimed Mr. Wright was an independent contractor, not their agent or broker, while Oslo Caribbean considered him Bethell’s authorized agent. The Panel determined Mr. Wright had both actual and apparent authority to act as Bethell’s agent and justified Oslo’s communication with him.
Bethell’s, inexperienced in chartering, argued that the delay in receiving the charterparty and lack of direct communication from the Oslo caused problems and expenses. However, the Panel found the Oslo followed industry practices and was justified in relying on Mr. Wright to relay information. The delay from April 21 to April 27, 2023, when a barge finally arrived, and the subsequent refusal by the Master to discharge due to unsafe conditions, was deemed Bethell’s responsibility under the BIMCO clause.
Award
The dispute over laytime was resolved by affirming the 72-hour allowance for discharge, and demurrage was calculated at $15,000 per day, as per the charterparty. The Panel found Oslo acted reasonably in terminating the charterparty on May 16, 2023, after waiting nearly a month without assurances from Bethell’s. Oslo was entitled to exercise a lien on the cargo and seek damages.
Bethell’s counterclaim for breach and wrongful termination was denied, and the arbitration fees and expenses were assessed against Bethell’s. The Panel clarified that the arbitration only addressed the rights and obligations between Bethell’s and Oslo Caribbean, not involving Superior Maritime Services.