2024 Maritime Digest of Arbitration Awards and Court Rulings
FORCE MAJEURE -- LOADING OF BAUXITE CAUSING UNAVOIDABLE DUST -- SUSPENSION OF LOADING ORDERED BY PORT AUTHORITY -- WHETHER CHARTERERS LIABLE FOR DELAY -- Owner Award
This dispute arose under a contract of carriage of a sepiolite cargo from “1-2 load berth chop always afloat Santander” to a UK port. Charterer asserted that the force majeure clause in the governing contract denied any Owner’s claim in the form of demurrage, or alternatively, damages, as a result of delays caused by the port authority’s suspension of loading operations.
EMISSIONS REGULATIONS . . . Hong Kong has announced that its emissions regulations for ocean going vessels will be ready to take effect from July 1, 2015. The regulation requires fuel sulfur content not to exceed 0.5 percent while at berth in Hong Kong (except during the first hour after arrival and the last hour before departure). Breach of this regulation will result in a $25,000 fine and six month jail term for owners and masters. Records of fuel switching must be maintained for three years. On 1 January 2015, MARPOL Annex VI, Regulation 14.3.4 came into effect, lowering fuel...
ASBATANKVOY -- DAMAGES -- COGSA -- CARGO CONTAMINATION -- BURDEN OF PROOF -- PRE-SHIPMENT CONDITION -- OWNER’S DUE DILIGENCE TO PREVENT CONTAMINATION -- DEMURRAGE -- Owner Award
Upon arrival at the discharge port, the Vessel’s onboard cargo was found to be off-spec. The Charterer concluded that the Vessel had caused the contamination and submitted a damages claim. Owner rejected the claim stating that their Vessel had met the cleaning requirements set forth by the Charterer’s surveyors at the load port and submitted a counterclaim for demurrage.
CLERICAL ERROR -- DOCUMENTS WRONGLY IDENTIFIED IN NOTICE OF APPOINTMENT -- LIMITED JURISDICTION -- TIME BAR -- Respondent Award
This dispute arose as a result of a clerical error made by the consignee’s lawyers. When appointing an arbitrator, they used incorrect references to the same bill of lading contracts on various correspondences / documents. This variation inadvertently made the correspondences / documents apply to a non-existing contract, and subsequently, the Respondent argued that the corresponding claims should be time barred.
BPVOY3 -- PIRACY -- FORCED TRANSFER OF CARGO -- LIABILITY FOR IN-TRANSIT LOSS OF CARGO -- Owner Award
While en route to the discharge port the Vessel was overtaken by pirates who transferred about 15% of the cargo to an unknown vessel. Charterer argued that Owner had accepted a strict “In-Transit Loss” clause in the charter party and are therefore liable in this matter.
CHARTERPARTY -- WHETHER THE AGENT/MANAGER ACTED ON BEHALF OF THE REGISTERED OWNERS -- WHETHER REGISTERED OWNERS WERE PARTY TO THE CHARTERPARTIES -- MEANING OF THE PHRASE “DISPONENT OWNER” -- Registered Owners Award
The Charterer submitted a damages claim against the Registered Owners of four vessels after they were withdrawn from the Charterers service. The Registered Owners claimed that they were not bound to the charterparties because they were not party to them, but rather by a third party without the authority to act on their behalf.
BARECON 90 FORM -- SAFE PORT -- SEVERE WEATHER -- WHETHER HULL INSURERS ENTITLED TO FILE SUBROGATED CLAIM AGAINST DEMISE CHARTERER -- Charterer Award
This dispute between the Claimant and Intermediate Charterer began over damages stemming from the loss of the Vessel when she went aground at the discharge port due to severe weather. However, the claim did not succeed as the demise charter contained an express stipulation to exclude the rights of subrogation.
These charts represent freight rate trends (USD/M.T.) over a three-year period for 1,000 M.T. lots of easy liquid chemicals between Houston, Rotterdam, Mediterranean, Brazil, Latin America, Asia Pacific and Kandla. Data provided by New England Tanker Chartering, Inc. (NETCO).
ASBATANKVOY -- ARBITRATION JURISDICTION -- VALIDITY OF ARBITRATION AGREEMENT -- DEMURRAGE AND PORT COSTS -- Owner Award
The Charterer denied liability for demurrage under several defenses. They argued that they never agreed to be liable for demurrage nor that there was a valid arbitration agreement. And if the Tribunal held that the charter party did provide for those considerations, then each party’s signature would be required for it to be a valid agreement.
NYPE -- TIME CHARTER -- NON-PAYMENT OF HIRE AND REPUDIATORY BREACH -- QUANTUM OF OWNER’S CLAIMS -- Owner Award
This dispute arose under a time charter for two vessels for a period of 36 to 37 months with two additional optional periods (for each vessel) of 11 to 13 months. Vessels were delivered in February and April. Then in January the following year Charterer breached their obligation to pay hire causing Owner to withdraw the Vessels from Charterer’s service. In determining Charterer’s repudiatory breach, the Tribunal decided the appropriate measure of damages for lost hire and stevedore damages.
