2024 Maritime Digest of Arbitration Awards and Court Rulings
SPEED AND CONSUMPTION WARRANTIES – PERFORMANCE CLAIMS – GOOD WEATHER CONDITIONS – DOUGLAS SEA STATE – SIGNIFICANT WAVE HEIGHT The Charterer claimed for damages for breach in the speed and performance warranty against Owner. Owner contended that there were no periods of time that satisfied “good weather” conditions. Charterer issued a performance claim against Owner amounting to a total of $128,388.86 for lost time and overconsumption of bunkers during a time charter trip from South Africa to China. Owner contended that they were not in breach of the speed and consumption warranty as there were no days that satisfied the...
DUE DILIGENCE – SAFE PORT SAFE BERTH WARRANTY – OIL SPILL – THIRD PARTY DAMAGES – SINGLE-POINT MOORING BUOY – PARTIAL FINAL AWARD Owner claimed against Charterer for hire and indemnity from a pollution incident during discharging operations. The basis of the Owner’s claim was the Charterer failed to exercise due diligence in nominating a safe berth. This partial final award determined the result of the indemnity claim. [dropcap]U[/dropcap]nder a time charter party on the Shelltime form with amendments, LR Mimosa Limited (hereinafter, “Owner”) entered into a charter of the M/T MIMOSA (hereinafter, “Vessel”) with Panamax International Shipping Company (hereinafter,...
TIME CHARTER – OFF-HIRE – HULL CLEANING – PERFORMANCE CLAIMS – OVERCONSUMPTION OF BUNKERS – GOOD WEATHER DAY – EXERCISE OF LIEN – DELAY Several disputes arose between Owner and Charterer under a time charter voyage with respect to off-hire, vessel performance, delays after discharging, and exercising liens. [dropcap]T[/dropcap]his arbitration covered several disputes arising from a voyage under a time charter on an amended NYPE form from Australia to India with a cargo of coal. The vessel made call in Singapore whilst on the way to the discharge port where the Charterer intended to bunker the vessel and the Owner...
PERFORMANCE CLAIMS – SPEED AND CONSUMPTION – “ABOUT” TOLERANCES – CURRANT FACTORS – WEATHER ROUTING SERVICES – AIS – OFF-HIRE Charterer claimed against Owner for issues regarding vessel performance and off-hire. [dropcap]C[/dropcap]harterer claimed the vessel underperformed and overconsumed on a voyage, which was chartered under an amended NYPE form for a time charter. The Charterer supported their performance claim by supplying reports of the vessel’s performance from three weather routing companies. These three companies were referred to as X, Y, and Z throughout the arbitration. In the weather routing clause of the charter party the Charterer was warranted not to...
PARTIAL FINAL AWARD – TIME BAR – HAGUE-VISBY RULES – COGSA – TRANSSHIPMENT – INDEMNITY – WHETHER CLAIM WAS RELATED TO CARGO DAMAGES OR INDEMNITY – UNSEAWORTHY Under a voyage charter the vessel became disabled whilst proceeding to the discharge port. Charterer incurred costs relating to salvage and transshipment of the cargo and claimed the amounts from the Owner and disponent owner. Owner contended that the claims were time-barred under COGSA and the Hague Rules. [dropcap]A[/dropcap]DM International Sarl (hereinafter, “ADMI”) claimed against FEDNAV International Ltd. (hereinafter, “FEDNAV”) and Reederei M. Lauterjung GmbH and Co. (hereinafter, “Owner”) for a dispute involving...
DEMURRAGE – AMENDED FINAL AWARD – NO OBJECTION TO CLAIM – NO RESPONSE FROM RESPONDENT Owner initiated arbitration proceedings against Charterer over an unpaid demurrage amount. Charterer issued no response or objection to the claim. [dropcap]B[/dropcap]BC Chartering Carriers GmbH Co. KG (hereinafter, “Owner”) claimed the demurrage balance from The Shopping Metal USA, Inc. (hereinafter, “Charterer”) after the Charterer failed to pay the outstanding balance within the time allocated by the charter party under the Gencon form. The demurrage amount in question totaled $13,265.62. Under the provisions of the charter party the dispute was to be conducted using the Shortened Arbitration...
DEMURRAGE – LATE PAYMENT – SOLE ARBITRATOR – RESPONDENT FAILED TO RESPOND TO CLAIMS Keytrade Africa SA claimed for demurrage and interests on late payments against Asbita Sarl when they failed to submit payment before the date specified in their Settlement Agreement. [dropcap]K[/dropcap]eytrade Africa SA (hereinafter, “Keytrade”) entered into an Assignment Agreement with Keytrade AG wherein they took all rights and obligations from Keytrade AG to pursue a claim against Asbita Sarl (hereinafter, “Asbita”) for demurrage with respect to two voyages. The claims were the result of late demurrage payments and interests accrued during the discharging operations of the two...
DEMURRAGE – TIME BAR – CONTRACT OF AFFREIGHTMENT – WHETHER BROKER IS AGENT OF OWNER OR CHARTERER – INTERMEDIATE BROKER – CONSEQUENTIAL DELAYS When Owner claimed demurrage with respect to eight voyages Charterer contended that seven of those were time-barred. The claim documents were sent to broker “D” who did not send them to the Charterer until after the time bar period. Owner contends that D was an agent of the Charterer, while Charterer contends D was an agent of the Owner. Further, when engine troubles at the load port led to consequential delays at the disport which Charterer claimed...
PARTIAL FINAL AWARD – LA 4/19 – HIRE DEDUCTIONS – WHETHER CHARTERER HAD REASONABLE GROUNDS TO DEDUCT FROM HIRE Owner claimed for hire amount deducted by Charterer stating the Charterer offered no reasonable grounds to make that deduction. [dropcap]T[/dropcap]his arbitration follows the award made in London Arbitration 4/19. The result of that arbitration was that the Owner would not be held liable to the cargo claim involving the Charterer, and therefore the Charterer’s deduction from hire would be dismissed. Owner pursued the issue further and claimed that the Charterer could not show reasonable grounds for the deduction from hire and...
UNPAID HIRE – DEDUCTIONS TO HIRE – CHARTERER SETTLING WITH CARGO RECEIVER – CARGO CLAIM – INTER-CLUB NEW YORK PRODUCE EXCHANGE AGREEMENT – UNSEAWORTHINESS Owner claimed for unpaid hire from Charterer after Charterer had deducted it on the basis that the Charterer had to settle with the cargo receiver due to a delay in the vessel’s arrival at the discharge port caused by the vessel being unseaworthy. [dropcap]T[/dropcap]he subject of this arbitration is an unpaid hire sum amounting to $295,000.00 claimed by the Owner against the Charterer. Counterclaims were issued by the Charterer for the amount of $2,985.88 on the...
