2025 Maritime Digest of Arbitration Awards and Court Rulings
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.
NYPE -- ANTICIPATORY BREACH -- WHETHER CHARTERERS ENTITLED TO GIVE VOYAGE ORDERS TO TRANSIT GULF OF ADEN -- OWNERS ASSERTING THAT PERMISSION REQUIRED -- WHETHER OWNERS IN REPUDIATORY BREACH -- Owner Award
At dispute is whether Charterer was entitled to terminate the time charter contract with the Disponent Owner because permission by the head owner was required if Charterer instructed the Vessel to transit the Gulf of Aden (GOA) – an area of piracy for which additional war risk premium was payable. Although GOA transit ability was a hard requirement by Charterer in the time charter negotiations with the Disponent Owner, it was not stipulated in the contract between Disponent Owner and head owners.
WHETHER VESSEL "IN EVERY WAY FITTED FOR THE VOYAGE" -- SUITABILITY OF VESSEL’S MOORING EQUIPMENT FOR THE LOADING INSTALLATION -- REPUDIATORY BREACH -- DETENTION AND DAMAGES -- Charterer Award
The Vessel arrived at loadport without the necessary equipment to operate safely at the shipper’s loading installation. Charterer cancelled the charter after the Vessel was viewed as unfit for the voyage. Owner claimed damages for Charterer’s rejection.
VOYAGE CHARTER -- CALCULATION OF TIME BAR DATE -- CHARTERPARTY LANGUAGE -- MEANING OF "FINAL DISCHARGE" -- NO CARGO LOADED -- REPUDIATORY BREACH -- Partial Owner Award
Prior to loading, Charterer cancelled the charter after the Vessel was deemed unfit. When Owner waited over three months from that notice to formally submit a claim for damages, Charterer argued that it was time barred.
GENCON -- WHETHER LAYTIME SUSPENDED AT LOADPORT -- FREIGHT PAYMENT ON “SIGNED/STAMPED FREIGHT INVOICE” OR “BREAKING BULK” -- NOR VALIDITIY -- WHETHER INVALIDITY OF NOR WAIVED -- WHETHER OWNERS ENTITLED TO DAMAGES FOR DETENTION -- CARGO LEIN -- WHETHER CARGO LIEN REASONABLY EXERCISED -- Owner Award
Owner is seeking compensation for balance of freight, demurrage, and detention. Charterer rejected the Vessel’s NOR tendered during port traffic delays due to the breakdown of a dredger; denied liability on balance 5% freight due based on Owner failing to comply with a C/P clause stipulating that freight be payable after receipt of “signed/stamped freight invoice” on Owner’s official letterhead but always before breaking bulk; and, denied demurrage at disport based on the fact that the SOF showed a second NOR and thus holding Owner bound by that. In turn, Owner exercised a lien on the cargo at disport awaiting payment of freight, consequently claiming detention and/or demurrage.
What is a Public Dock Clause and why has it been getting so much attention lately by oil majors, chemical producers and trading companies?
LONG-TERM PERIOD TIME CHARTERS -- CHARTER RESTRUCTURING AGREEMENT (CRA) -- SEMI-ANNUAL HIRE ADJUSTMENT -- CONTRACT CONSTRUCTION -- Owner Award
Due to the financial challenges brought on by the market collapse of 2008/9, Owner and Charterer restructured the long-term period time charters for eight VLCCs. Under this new agreement, the hire would be derived on a month-to-month basis relative to the Clarkson Index and adjusted semi-annually. Disagreements arose with respect to the proper construction of the contract and interpretation of the semi-annual adjustment clause.
