2024 Maritime Digest of Arbitration Awards and Court Rulings
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.
ASBATANKVOY -- AMBIGUITY OF OWNER NAMED IN CHARTER PARTY -- CONTRACT REFORMATION -- DEMURRAGE -- Partial Owner Award
This partial final award addresses the claimant’s right to assert a demurrage claim against Charterer, when the claimant is not expressly named as the Owner in the fixture recap. Star Tankers, as disponent Owner, filed a demurrage claim with Charterer which was rejected on the basis that the charter party names the Owner as Scerni Di Navigazion.
NYPE -- TIME CHARTER TRIP -- SPEED AND BUNKER CONSUMPTION -- ONGOING PERFORMANCE WARRANTY -- Partial Charterer Award
At issue is whether the seaworthiness of the Vessel as warranted in clause 1 "for the service and all time during the currency of this Charter" applies to the speed and consumption warranty as a continuing warranty throughout the duration of the charter (not just at the time of delivery).
SALE CONTRACT -- FOB DEMURRAGE -- RIVER PORT -- NOR TENDERED PRIOR TO ARRIVAL -- VESSEL’S SUSPENSION OF LOADING DUE POSSIBLE CARGO CONTAMINATION -- APPROPRIATE DATE FOR CURRENCY EXHANGE RATE -- Buyer Award
Under an FOB sale of ethanol ex Matadi, Democratic Republic of the Congo the Seller invoiced the Buyer for the contract price, which was paid by the Buyer. Subsequently the Seller claimed additional costs and supplemental freight, which the Buyer did not dispute, however Buyer presented a counterclaim for demurrage stating that it should be set off against Seller’s claim. Seller brought arbitration proceedings against the Buyer to dispute the demurrage and to recover the supplemental charges.
GENCON -- VOYAGE CHARTER -- COST OF SECURITY GUARDS -- DISTINCTION OF BIMCO ISPS CLAUSES -- NATIONALITY OF CREW -- Owner Award
This dispute arose under a voyage charter from Turkey to a U.S. port wherein the U.S. Customs and Border Protection (hereinafter CBP) ordered security guards to be posted. Charterer denied liability for the cost of the guards on the basis that the latest BIMCO ISPS clause excuses Charterer from liability when security guards are required due to the nationality of the crew.
NYPE -- TIME CHARTER -- REPUDIATION OF CHARTER -- UNPAID HIRE -- CALCULATION OF DAMAGES -- Owner Award
Charterer withheld payment for hire thereby frustrating the charter. Owner considered this a repudiatory breach and withdrew the Vessel from the Charterer’s service.
NYPE -- WHETHER BILL OF LADING INCORPORATED CHARTER PARTY LAW AND JURISDICTION -- Owner Award
With respect to a cargo contamination claim, the consignees and the cargo insurers challenge the jurisdiction of the English court and law (stipulated in the charter party) when the cargo contamination occurred at the place of delivery in Morocco.
