2024 Maritime Digest of Arbitration Awards and Court Rulings
CONTRACT OF AFFREIGHTMENT (COA) -- ISPS CODE -- LIABILITY FOR PORT EXPENSES -- DOCKAGE AND SECURITY FEES -- Owner Award
Midway through an eight-year fixed freight rate Contract of Affreightment (COA), Charterer's new port manager directed Charterer to pass on port fees to Owner given the COA states Owner is responsible for "all port expenses". Fees were previously not being passed on presumably due to Charterer's lack of experience in this area.
NYPE -- TIME-CHARTER -- BUNKER PRICES -- BUNKER SHORTFALL ON REDELIVERY -- Owner Award
When Charterer failed to redeliver Vessel with the charter party mandated quantity of IFO and MDO, Owner claimed for the difference.
ASBATANKVOY -- VESSEL BREAKDOWN -- ENGINE PROBLEM -- SEAWORTHINESS -- Owner Award
At the time of the fixture, Vessel was in drydock for repairs. After undocking further repairs were found to be required subsequently causing the Vessel to miss her laydays. Charterer cancelled the fixture incurring costs in finding a suitable replacement which Charterer is claiming from Owner in this arbitration.
GENCON -- CERTIFICATE OF AFFREIGHTMENT (COA) -- GROUNDING IN RIVER -- SAFE PORT / BERTH WARRANTY -- DEMURRAGE -- BUNKERS -- Charterer Award
En route to the discharge berth named in the Contract of Affreightment (COA) and warranted as being a "safe berth", Vessel grounded either due to poor seamanship or as a result of a buoy being out of place. As a result of the grounding, Vessel missed its berthing opportunity and after repairs was forced to await berth availability. Disponent Owner, arguing berth was unsafe, claimed for damages resulting from the grounding and demurrage during the aforementioned wait.
PDVSA TIME 2006 -- TIME-CHARTER -- EXTRA WAR RISK INSURANCE -- INSURANCE PREMIUM -- INTEREST CALCULATION -- Owner Award
Charterer failed to pay the Extra War Risk Insurance Premiums and interest that was allowed within the charter party. The Panel revised the Owner’s interest rate and calculation methodology.
MEDITERRANEAN CHARTER PARTY -- ETA SUBMITTED WITH INCORRECT CALL SIGN -- BERTHING DELAY -- INVALID NOR -- BERTH OR PORT CHARTER -- WIBON -- Owner Award
Albeit quickly corrected, Master initially submitted an ETA with an incorrect Vessel call sign which per Charterer, caused the Vessel to be held out at anchorage whilst correcting the paperwork with the Chinese Authorities. As such, per Charterer the NOR is invalid. Further, per Charterer the charter party was of a berth nature, with NOR subsequently only effective in regards to the commencement of laytime upon the Vessel's arrival in berth.
EXXONVOY 84 -- CONTRACT OF SALE -- DEMURRAGE -- INDEMNITY -- CAUSE OF ACTION -- TIME BAR -- Buyer Award
The relationship between demurrage clauses in the sale contract, underlying charter party, and the relevant commercial background determines what constitutes the accrual of the cause of action for Seller’s claim against the Buyer. The issue that the contract was finalized after the completion of discharge is broached.
NYPE -- TIME-CHARTER -- RISK OF PIRACY -- CONWARTIME 1993 --GULF OF ADEN -- ALLEGED DEVIATION AROUND CAPE OF GOOD HOPE -- Charterer Award
Due to the inherent risk of piracy along the contracted route, the Owner instructed the Vessel to change course incurring additional costs for Charterer’s account. The arbitrators held that the Owner acted appropriately. On appeal the Court ruled that the arbitration panel had deconstructed the CONWARTIME 1993 clause improperly and, as such, remanded the case back to the arbitrators for reconsideration on findings of fact.
SHELLTIME 3 -- TIME CHARTER -- SPEED WARRANTY -- PERFORMANCE CLAUSE -- UNDERPERFORMANCE -- BUNKER CONSUMPTION -- ALL WEATHER WARRANTY -- Charterer Award
The sub-charterer contends that the time-chartered vessel did not meet the contracted requirements for speed and fuel performance basis the construction of the relevant clauses. Such construction is based on the inclusion of an all weather warranty, which the owners claim is not proper in the context of this time-charter.
GENCON -- ECONOMIC DURESS -- REPUDIATORY BREACH OF CONTRACT -- VESSEL SUBSTITUTION -- Charterer Award
Although Owner’s action of substituting the contracted vessel without notifying the Charterer created a repudiatory breach, the Charterer did not cancel the charter. Owner proposed a new vessel and promised to reimburse the Charterer for damages, however they later used economic leverage to gain a better deal during renegotiation.
