2024 Maritime Digest of Arbitration Awards and Court Rulings
ASBATANKVOY - DEMURRAGE - NOR VALIDITY - EXPEDITE INSPECTION - SUBSTANTIAL READINESS – “ROOT CAUSE” PRINCIPLE
Nearly 38 days after the tender of NOR, charterer inspected and subsequently directed the vessel to repair its anchor chain prior to berthing. The repair took 3 days. Charterer subsequently claimed that as the vessel was not ready the NOR was invalid with the 38 days for Owner’s account.
DISPONENT OWNER TERMINATING TIME CHARTER FOR CHARTERER’S FAILURE TO PAY HIRE - WITHOUT PREJUDICE PRIVILEGE - WHETHER PARTIES IN DISPUTE - WHETHER OWNER WAIVED CHARTERER’S BREACH - IMPOSSIBILITY OF PERFORMANCE DEFENSE - MEASURE OF DAMAGES
With the subject vessel out on time charter disponent owner was not receiving hire from charterer. As funds were not passed from disponent owner to head owner, head owner terminated the head charter and disponent owner in turn cancelled the charter with charterer. The panel was tasked at determining whether prior settlement discussions between the parties should be admissible or protected by privilege. Further, the panel would need to determine whether owner had waived charterer’s breaches and then whether or not to award damages.
BIMCO OREVOY VOYAGE CHARTER - VESSEL UNABLE TO LIFT MINIMUM QUANTITY - OWNER CLAIMS FORCE MAJEURE - CHARTERER REPUDIATES CHARTER AND CHARTERS SUBSTITUTE VESSEL
A vessel arrived at the load port with a portion of her previous cargo frozen to the inside of her hold. After owner failed to secure a substitute vessel charterer terminated the charter and fixed its own sub. Charterer’s claim for damages was denied by owner who presented a counterclaim basis what owner believed to be charterer’s wrongful repudiation of the charter party.
NYPE 1993 TIME CHARTERS - FAILURE TO PAY HIRE - WITHDRAWAL OF VESSEL FROM LONG TERM TIME CHARTER - WHETHER PUNCTUAL HIRE PAYMENTS A CONDITION OF THE CHARTER - WHETHER CHARTERER IN RENUNCIATORY BREACH
While on separate time charters owner withdrew three vessels from service due to charterer’s failure to pay hire in accordance with the contracts. Owner brought arbitration against the charterer. However, shortly before the hearing the charterer was liquified and the proceedings stayed. The present case involves the charterer’s parent company, as guarantor.
GENCON – DEMURRAGE/DESPATCH – CAN USED LAYTIME BE PRO-RATED BASIS THE NUMBER OF HATCHES WORKED – DID A WEATHER DELAY OCCUR – DID CHARTER JUSTIFY DEDUCTIONS DURING NIGHTTIME
Regarding demurrage incurred, the charterer believed that the used laytime needed to be pro-rated basis the amount of hatches being worked at any given time. Additionally, the charterer requested deductions for bad weather and the times the ship was not working during nighttime hours. The owner disagreed with these points, and took the case to arbitration.
BALTIMORE FORM C BERTH GRAIN VOYAGE CHARTER – CARGO SHORT LOADED - BUYER DEMANDS DISCOUNT FROM CHARTERER AFFILIATED SELLER – CHARTERER CLAIMS DAMAGES IN THE FORM OF THE DISCOUNT FROM OWNER – WHETHER DISCOUNT REPRESENTATIVE OF DAMAGES - WHETHER CHARTERER EVEN LIABLE FOR LOSSES
After a vessel was short loaded, the charterer affiliated seller had to sell the cargo at a discount due to buyer’s demands. The charterer then claimed damages from the owner in the form of the discount, arguing that the vessel was at fault for the short load. The owner rejected this, and the charterer brought the case to arbitration.
BALTIMORE BERTH GRAIN FORM - DEVIATION - LATE LOAD PORT NOMINATION - DEADFREIGHT - LT ALLOWANCE - ALWAYS AFLOAT
Several disputes arose between an owner and charterer concerning a cargo delivery that took place from Texas to Columbia. This included a deviation claim arising from a late port nomination and a short load due to draft at the public elevator. The owner had attempted to prevent the issue by requesting a change in load port rotation, but this never came to fruition. The owner contended that the charterer failed to provide a berth whereat the vessel could load always afloat, and charged deadfreight for the unloaded quantity. A dispute also arose over whether laytime allowance should be received were deadfreight to be paid.
VALIDITY OF NOR TENDERED PRIOR TO FREE PRATIQUE AND CUSTOMS CLEARANCE AND WITH STOWAWAYS ONBOARD - OWNER’S OBLIGATION TO DISCLOSE PRESENCE OF STOWAWAYS - WHETHER PANAMA CANAL EXPENSES DUE TO OVERLOADING FOR OWNER’S OR CHARTERER’S ACCOUNT
Under a COA a vessel was nominated to carry coal from Colombia to Chile. Due to not yet having obtained free pratique and customs clearance, and whilst having stowaways onboard, Charterer argued that the NOR tendered at load was invalid. During transit to the disport the vessel was found in breach of Panama Canal draft restrictions and incurred unexpected expenses due to overloading which each party believes to be for the other party’s account.
INTERIM PORT - LIGHTERING - DEMURRAGE - TIME BAR - WORLDSCALE
A demurrage claim presented by owners was rejected due to charterers belief that the time in question was to be considered an interim port.
TIME CHARTER – HOLD INSPECTION FAILED – WHETHER DELAY IN RE-BERTHING AFTER HOLDS CLEANED AND PASSED INSPECTION OFF HIRE
Upon arrival at the load port, the vessel’s holds failed inspection. After the holds were cleaned, the vessel was re-entered into the berthing queue. Charterer claimed the second delay in berthing was due to the holds failing inspection whereas owner claimed it was due to berth congestion.
