2024 Maritime Digest of Arbitration Awards and Court Rulings
NYPE -- GROUNDING -- SAFE PORT WARRANTY -- GOOD NAVIGATION AND SEAMANSHIP -- OFF HIRE -- REPAIR COSTS -- Charterer Award
The Vessel grounded on an uncharted reef on her approach to the discharge port, Makassar, Indonesia, causing hull damage, loss of time, additional bunker consumption and other related expenses. At issue is whether Charterer breached the safe port warranty or whether Owner failed in exercising good navigation and seamanship.
AMERICANIZED WESLSH COAL CHARTERPARTY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- LOST PROFITS -- Partial Owner Award
Despite Charterer’s ongoing promise to supply cargo, after waiting 95 days, the Owner canceled the contract. Demurrage was awarded up to the time of contract cancellation, however, Owner’s claim for lost profits did not succeed owing to a lack of supporting evidence.
NYPE -- TIME CHARTER -- PERFORMANCE WARRANTY -- SPEED AND CONSUMPTION -- GOOD WEATHER CRITERIA -- BREACH OF CHARTER -- CONTRACT LANGUAGE -- Owner Award
During a winter voyage the Vessel allegedly underperformed and Charterer subsequently argued that the Owner was in breach of the speed and consumption warranties. Owner countered that the Vessel’s performance warranty was not absolute, but instead, was only applicable during periods of good weather.
NYPE -- TIME CHARTER -- ANTICIPATORY BREACH – EARLY REDELIVERY – DAMAGES -- PROFIT FROM SALE OF VESSEL -- CAUSATION -- Owner Award
Under a time charter contract, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim.
Detention accrues when a ship is delayed outside of the scope of laytime and demurrage, which is directly attributable to fault of the Charterer. Some examples of Charterer’s fault includes failure to have cargo ready when the Vessel arrives within laydays, failure to give voyage orders, delay in paying freight causing Owner to impose a cargo lien, and unreasonable departure delays in releasing the Vessel after laytime ceases to run.
In order to remain abreast of the maritime world, Haugen Consulting reviews the pertinent shipping news articles from around the globe and summarizes them for the busy industry member…in brief. ESHIPS BOUGHT BY OLDENDORFF…The UAE-based tanker and drybulk shipowner and operator has been purchased by Germany’s Egon Oldendorff in a move to bolster their Middle East operations. Although not fully realized, Oldendorff will take control of their business with the goal of generating “long term dry bulk freight contracts” with clients. STOLT TANKERS PROFITS DOWN…Stolt-Nielsen (SNI) reported a net profit of only $30.8 million for this quarter after last...
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).
CONTRACT OF AFFREIGHTMENT (COA) -- CONTRACT PRECEDENCE -- CHARTER CONSTRUCTION -- FREIGHT CALCULATION AND REIMBURSEMENT -- CARGO RELET -- Partial Owner Award
Four years into an eight-year COA, Charterer started charging security and docking fees for vessels loading/discharging at their owned, nominated berth. In a previous award, the Panel held that Charterer had established a precedent which precluded them from charging Owner for these costs on time chartered vessels. This award covers the decis spot fixed relet voyages where these costs were factored into higher freight rates against and the calculation.
GENCON -- DETENTION DUE TO VESSEL GROUNDING -- UNPAID FREIGHT BEFORE BREAKING BULK (BBB) -- CARGO LEIN -- OUTSTANDING LIABILITY -- Owner Award
Owner commenced Shortened Arbitration Procedures to recover $33K in demurrage, detention, and ancillary costs under two voyages. At issue under the first voyage concerned the Charterer’s “safe berth, safe port, always afloat” obligation as it relates to the Vessel’s grounding at the loadport, subsequent hull inspection costs, and departure delay. Under the second voyage the Owner enforced a lien on the cargo while awaiting Charterer’s freight payment and seeks compensation for detention.
AGENCY AGREEMENT -- CHOICE OF LAW -- JURISDICTION OF DISPUTE -- LEGAL AUTHORITY OF SIGNATORY -- CONTRACT AMBIGUITY -- Partial Owner Award
For over seven years, the contract partners performed under an Agency Agreement dated 1 July 2005. During that time, some issues arose with regard to the formation and legality of the Contract, whether to apply U.S. or Austrian law, as well as questions of conduct like infringements and monetary claims. In this award the Panel must determine the governing law and jurisdiction.
