2024 Maritime Digest of Arbitration Awards and Court Rulings
TIME CHARTER -- GROUNDING DUE EXCESS DRAFT RESULTING FROM SUB-CHARTERER’S LOAD INSTRUCTIONS -- Charterer Award
Under a chain of time charters, the Vessel grounded and damaged her hull as a result of following the sub-Charterer’s load instructions to a draft of 13.3m. The Head Owner’s claim for indemnity failed because the sub-Charterer’s indemnity guarantee was given to the Master as the representative of the intermediate Charterer (not as a representative of the Head Owner) and the indemnity was not provided on a back-to-back basis throughout the chain.
TIME CHARTER -- ENFORCEABILITY OF ENGLISH ARBITRATION IN CONTRACT CONTAINING AN ILLEGAL GUARANTEE -- NON-COMPLIANCE WITH CHINESE "SAFE" (STATE ADMINISTRATION FOR FOREIGN EXCHANGE) REGISTRATION -- Owner Award
The background to this case involved five claims pursued by various ship owners against Beijing Jianlong Heavy Industry Group (hereinafter "Charterer") against the Charterer’s guarantor to resolve essentially the same issue i.e. Charterer’s repudiation of its obligations under several time charter contracts. Due to the similarities, the dispute was consolidated at London arbitration.
CARGO LIEN -- RIGHT TO RECOVER STORAGE COSTS -- GENERAL AVERAGE -- CONGEN BILLS OF LADING -- Owner Award
Owner exercised his right of lien on the cargo while awaiting the Charterer’s General Average payment due to the Vessel’s main engine breakdown en route to the discharge port. At issue is whether the lien was waived when an average guarantee (rather than an average bond) was given by the consignee; and, whether the Owner could claim the expense of storage costs when exercising the lien.
BPVOY 3 -- VESSEL DETAINED -- RESTRAINT OF PRINCES -- DEMURRAGE LIABILITY -- FORCE MAJEURE -- FOB Buyer Award
In overturning the lower Court ruling, the Court of Appeal held that parties may not be able to rely on Force Majeure clauses where the event is within their reasonable control or that of the parties whom they had delegated their responsibilities.
NYPE 1946 -- TIME CHARTER -- OFF-HIRE CLAUSE MEANING OF “LOSS OF TIME” -- Owner Award
Charterer was liable to pay for the off-hire period while drifting off the discharge port as there was no net loss of time as the discharge berth was unavailable.
BALTIMORE FORM C -- MOORING PERSONNEL STRIKE -- PILOT DELAY -- WIBON CLAUSE -- NOTICE OF READINESS VALIDITY -- SUBSTANTIAL READINESS -- Charterer Award
The Vessel experienced serious delays en route to the upriver loadberth due to a strike of mooring personnel. Charterer rejected the subsequent demurrage claim, and at arbitration, they argued that (1) Shortened Proceedings should govern, (2) the loadport Notice of Readiness (NOR) was invalid because the Owner had not met all NOR requirements, and (3) the delay due to a workmen strike (mooring personnel) is exempted by a special exceptions clause.
ASBATANKVOY -- COA -- ARBITRAL VENUE -- Charterer’s Motion Denied
Charterer requested arbitration hearings to be conducted in Houston, Texas, despite the Contract of Affreightment (COA) stipulating that arbitration is to take place in New York.
NYPE -- LOSS MITIGATION -- UNSAFE BERTH -- VESSEL DAMAGE -- CHARTER HIRE RATE -- PROTRACTED VOYAGE -- WITHOUT GUARANTEE PROVISION -- Partial Owner Award
The Disponent Owner’s claim was a summation of five different issues recapped below as (1) Vessel damage while alongside the discharge berth; (2) disputed daily hire rate for transit time to Santos to conduct repairs; (3) unsafe berth; (4) time charter trip exceeding the estimated voyage days fixed; and (5) indemnity for a third-party claim for underperformance attributable to bottom-fouling (due to prolonged waiting time at Charterer’s disport).
COA -- SEAWORTHINESS -- CARGO DAMAGES -- INDEMNITY -- Owner Award
Charterer seeks market damages due to a one week delay in cargo delivery because of Vessel repairs. Owner rejects the Charterer’s damages claim on the basis that the Charterer sold the cargo under a CIF contract (title and risk of loss to the cargo is transferred when the cargo passes the ship’s rail at the loadport) and is therefore not the injured party.
ASBATANKVOY -- SAFE PORT WARRANTY -- "APPROACH" DEFINED -- Owner Award
Owner appealed the U.S. District Court ruling for exoneration from or limitation of liability resulting from the Vessel striking a partially submerged anchor in its approach to the Charterer’s discharge terminal. Per Owner, Charterer breached the safe berth warranty. Per Charterer, the incident occurred outside its area of control and the Owner is responsible for port draft restrictions by virtue of the port being named in the charter party.
