2025 Maritime Digest of Arbitration Awards and Court Rulings
TIME CHARTER – OFF-HIRE PROVISIONS – VESSEL PERFORMANCE – SPEED – CONSUMPTION – TIME BAR – HAGUE RULES Charterer made deductions to hire that were attributed to underperformance of the vessel. These deduction claims were submitted using the off-hire provision. Owner contended off-hire provisions did not account for deductions made in regard to vessel performance, and in any case performance claims were time-barred. [dropcap]T[/dropcap]he Charterer made deductions to the hire sum totaling $729,158.76, of which about $450,000 was attributed to vessel underperformance regarding speed and the overconsumption of bunkers. Charterer’s performance claims were described as “off-hire due to under performance...
TIME CHARTER PARTY – SLOW CRANE MOVEMENT DURING LOADING – UNDERPERFORMANCE OF VESSEL – WHETHER OWNER IN BREACH OF CHARTER PARTY Charterer claimed for time lost due to perceived slow movements of vessel’s cranes during loading operations and underperformance of vessel. It asserted that for both disputes the Owner breached warranties in the charter party. [dropcap]C[/dropcap]harterer filed claims against Owner over two disputes arising during a single time charter voyage. The first dispute brought by the Charterer was that the cranes utilized in the vessel’s loading operations were moving slowly and subsequently lost them time to the amount of 1.89...
DEMURRAGE – DETENTION – TIME BAR – NOTICE OF READINESS Vessel was requested to wait in gulf outside discharge port due to a lack of berthing prospects. Owner invoiced detention inclusive of extra bunkers consumed from CFR seller whom in turn claimed it from the CFR buyer. The CFR time-barred the claim via the demurrage time bar clause. [dropcap]G[/dropcap]lencore Energy UK Ltd (hereinafter, “Glencore”) sold 80,000 mt of light crude oil CFR to OMV Supply and Trading Ltd (hereinafter, “OMV”) to be loaded at Novorossiysk, Russia and carried by a vessel that was to be nominated to the discharge port...
VOYAGE CHARTER PARTY – DETENTION – SAFE PORT – SAFE BERTH – PORT OF HOUSTON Under the auspices that the Port of Houston was an unsafe port when the Vessel could not depart its discharge berth after a tug sank in the ship channel, Owner claimed detention. Charterer contended that the contractual agreement ended upon the completion of discharge and disconnection of the hoses and that the accident in the ship channel was abnormal, unexpected, and beyond Charterer’s control. [dropcap]L[/dropcap]exmar Corporation of Liberia (hereinafter, “Owner”) claimed detention to the amount of $90,077.48 plus interest from Tricentrol Oil Trading Inc. (hereinafter,...
DEMURRAGE – SUSPENDED LAYTIME – TAKING ON LUBE / SPARES – INTERNAL STRIPPING – PUMP WARRANTY – INTEREST – ASDEM PUMPING PERFORMANCE FORMULA Upon receipt of Owner’s demurrage claims, charterer deducted time whilst Vessel loaded lube and spares, internal stripping during discharge, and a deduction for failing to discharge within the warranted 24 hours or maintain an average of 100 PSI at the manifold. [dropcap]T[/dropcap]his arbitration was initiated by Blue Fin Tankers Inc. (hereinafter, “Owner”) against Tesoro Far East Maritime Company SA (hereinafter, “Charterer”) in regards to disputes over demurrage claims with respect to three voyage charters. The charters were...
VOYAGE CHARTER PARTY – SHELLVOY 5 – OBLIGATION TO COMMENCE VOYAGE – LAYCAN EQUIVALENT TO EXPECTED TIME OF ARRIVAL / EXPECTED READINESS TO LOAD – EXPECTED TIME OF ARRIVAL – EXPECTED READINESS TO LOAD – MONROE OBLIGATION Charterer claimed damages against Owner when Vessel was unable to proceed to loading port by the charter party cancellation date. It argued the Owner had absolute obligation to proceed to the loading port where the cancellation date constituted the time in which the approach voyage was to be commenced. [dropcap]T[/dropcap]he vessel “Pacific Voyager” (hereinafter, “Vessel’) was chartered by CSSA Chartering and Shipping Services...
REPUDIATORY BREACH – CHARTER PARTY – EXISTENCE OF A COMPLETED CONTRACT – PRO FORMA CHARTER PARTY – COURT OF APPEAL The claimant charterer filed damages against defendant disponent owner for repudiatory breach of a charter party. The defendant argued that the presence of a Subject Review clause implied no formal contract existed. [dropcap]T[/dropcap]optip Holding Pte Ltd (hereinafter, “Toptip”) as charterer claimed damages against Mercuria Energy Trading Pte Ltd (hereinafter, “Mercuria”) as disponent owner for repudiatory breach of a charter party. Toptip claimed for the difference in freight rate between the charter party with Mercuria and the substitute charter party. The...
SALE OF GOODS (CFR) - DEMURRAGE - TIMELY PAYMENT OF FREIGHT - OBLIGATIONS UNDER SALES CONTRACT VS UNDER CHARTERPARTY - OWNERS REFUSING TO RELEASE BILLS OF LADING UNTIL FREIGHT PAYMENT
The CFR Sellers brought arbitration against their Buyers in order to indemnify themselves for demurrage caused by the Buyers delaying payment of the Owner’s freight. Sellers argued that it was the Buyer’s responsibility to pay freight promptly under the contract. The Buyers countered that the obligation to pay freight accrued under the Seller’s charterparty, and therefore it was the Seller’s responsibility.
VOYAGE CHARTER - DEMURRAGE – TIME BAR – VALID NOTICE OF READINESS – FAILURE TO PROVIDE CARGO
Charterer cancelled a voyage charter party after failing to provide cargo. Owner claimed demurrage and damages from the alleged repudiatory breach. Charterer countered that the claim was time barred, the Vessel’s NOR was invalid, and the damages if awarded, should be basis the C/P’s lowest freight option.
PARTIAL FINAL AWARD - ARREST AND ATTACHMENT OF VESSEL - MARITIME LIEN - DEFAULT IN HIRE - UNSEAWORTHY
The vessel was denied entry into a prior port for other charterers’ accounts which subsequently delayed her arrival at charterer’s disport. The panel was tasked to determine the party at fault for the delay and whether demurrage and other damages for barges awaiting the vessel at charterer’s disport for transshipment purposes were to be considered as consequential.
