2025 Maritime Digest of Arbitration Awards and Court Rulings

Panamex International Shipping Company Ltd. v AAT Global Ltd. (The “CABO FUJI”) – SMA No. 4473 – 4 March 2024

ASBATANKVOY – DEMURRAGE – FAILURE TO PAY – FAILURE TO PARTICIPATE IN ARBITRATION

Panamax International Shipping sought $332K from AAT Global for demurrage incurred during a voyage transporting Carbon Black Feedstock from Mississippi River ports to East Coast India. AAT Global failed to respond to payment requests, forcing Panamax to initiate arbitration.

London Arbitration 6/24

TIME CHARTER – NYPE 93 FORM – FAILURE TO TENDER NOR FOR FIVE DAYS – DELAY TO TENDER NOR – LIABILITY OF OWNERS FOR DEMURRAGE NOT EARNED UNDER SUB-CHARTER – CLAUSE 8 – NEGLIGENCE OF AGENTS – DEMURRAGE

On a voyage chartered under an amended NYPE 93 form, a dispute arose due to the master’s delayed submission of the Notice of Readiness (NOR), leading sub-charterers to contest the commencement of demurrage. Owners contended that the delay was neither deliberate nor negligent, attributing any loss to negligence on the part of the Charterers’ agents. Charterers argued that the master’s failure constituted a breach of contract and negligence.

RTI Ltd v MUR Shipping BV – UK Supreme Court – 15 May 2024

APPEAL – US SANCTIONS – CONTRACT OF AFFREIGHTMENT – FORCE MAJEURE AFFECTING DELAY IN LOADING AND DISCHARGE – REASONABLE ENDEAVORS – DOLLAR PAYMENTS REQUIRED BY THE CONTRACT – OFFER TO PAY IN EUROS – OVERCOMING SANCTIONS

MUR Shipping sought to overturn a previous decision by the Court of Appeal by focusing on a force majeure clause in their contract with RTI. MUR invoked force majeure due to US sanctions preventing payments in dollars. The appeal examined contractual clarity, contractual rights, and the application of force majeure clauses.

Soreidom S.A. v Hansen-Mueller Co. – SMA No. 4474 – 14 March 2024

DEMURRAGE – NAEGA 2 CONTRACT – UNPAID BALANCES ON PREVIOUS VESSELS – REVOKING NOR – REFUSAL OF PAYMENT – MULTIPLE VESSELS ON CREDIT

Soreidom sought to recover $776,202.94 in demurrage for the vessels M/V GANT FLAIR and M/V CENTURY EMERALD chartered under NAEGA 2 contracts with Hansen-Mueller Co. HM disputed its liability for the GANT FLAIR charges and claimed reduced liability for the CENTURY EMERALD charges.

Oslo Caribbean v Bethell’s Trucking – SMA No. 4477 – 14 June 2024

DEMURRAGE – LIEN AGAINST CARGO – EXTENSIVE DELAY – FAILURE TO PROVIDE SAFE BERTH / SAFE PORT – DIVERTED TO ALTERNATE PORT – DAMAGES

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.

London Arbitration 13/23 

TIME CHARTER – DEATH OF MASTER – COVID-19 – QUARANTINE REQUIREMENTS – PANAMA CANAL – OFF-HIRE – CANAL TRANSIT AUTHORITIES – DELAY DUE TO COVID TESTING – HEALTH AUTHORITY HOLD – DETENTION – AMENDED NYPE FORM

Shortly before its arrival at the Panama Canal in May 2021, complications arose on a time charter due to the unfortunate death of the vessel’s master. The vessel was placed on hold until PCR test results were available, delaying transit through the Panama Canal and prompting claims by Charterers of off-hire and detention.

London Arbitration 14/23 

TIME CHARTER – ANCHORAGE IN MISSISSIPPI – HURRICANE IDA – GROUNDING – 360-DEGREE SWING ANCHOR CHAIN ENTANGLEMENT – TUG ASSISTANCE – DELAYS – OFF-HIRE – UNSAFE ANCHORAGES –INDEMNIFICATION OF OWNERS – CLAUSE 8 OF NYPE FORM – BREACH OF WARRANTY – VESSEL ALWAYS AFLOAT – ALLEGED NEGLIGENCE OF MASTER – HULL FOULING – FRESH OR BRACKISH ANCHORAGE WATER – LATE EVIDENCE.

A vessel was chartered for an 80-90 day one-way trip from the US Gulf to China under an amended NYPE 1946 form with additional clauses. Berthing in New Orleans/Mississippi River was delayed by Hurricane Ida, leading to a 34-day wait at Alliance Anchorage. After loading bulk corn, the vessel sailed on September 27, 2021, and was redelivered in China on December 7, 2021. Arbitration was sought to resolve disputes over final hire accounts, grounding of the vessel, fouling of the hull, and alleged negligence of the master.

London Arbitration 15/23

SPEED AND CONSUMPTION CLAIM – WEATHER ROUTING COMPANIES’ METHODOLOGIES – VERACITY OF DECK LOG DATA – DEADFREIGHT – SURVEY COSTS AND BANK CHARGES – HONG KONG SEAT

A single-deck geared bulk carrier was chartered to transport nickel ore from the Philippines to China. Owners alleged wrongful deductions by the charterers for underperformance, deadfreight, survey costs, and bank charges and sought US$54,675.21. The arbitration centered on speed and consumption clauses and weather routing methodologies.

London Arbitration 16/23

BUNKERS ON REDELIVERY – MEANING OF “PRICE AT BOTH ENDS” – EXCEEDING 5 PERCENT ALLOWANCE – OFF-HIRE DUE TO CREW CHANGE – WRONGFUL DEDUCTION REPAID LATE – INTEREST

Owners of a vessel chartered on an amended NYPE 1946 form sought compensation for market rate differences on bunkers at redelivery. The arbitration also dealt with crew changes, off-hire, and time spent on sub-chartering.

Hyphen Trading Ltd v BLPL Singapore Pte Ltd – Singapore High Court, 25 Oct 2023

ADMIRALTY – SALE OF CARGO – DISPUTE OVER CARGO OWNERSHIP – VALIDITY OF BILLS OF LADING – WHETHER CARGO COULD BE SOLD WITH OWNERSHIP DISPUTE

HTL, a UK commodity trading company, claimed ownership of nickel briquettes and held bills of lading for their shipment from Malaysia to India. A dispute arose with BLPL, the alleged contractual carrier, over ownership of the cargo. HTL sought to sell the cargo in Singapore and petitioned the Court to do so in advance of the ownership ruling.