2025 Maritime Digest of Arbitration Awards and Court Rulings
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.
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.
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 -- OFF-SPEC BUNKERS -- BUNKER CONSUMPTION PRIOR TO ANALYSIS -- DAMAGES -- SPEED AND CONSUMPTION -- Partial Owner Award
Off-spec bunkers were provided by Charterer yet prior to the sample analysis being received Vessel consumed some of the off-spec bunkers damaging the engines. Owner subsequently claimed for the cost of repairs, the cost to replace the bunkers, and the cost of cleaning of the tanks the off-spec bunkers were stored in. This arbitration also covered eight issues regarding the speed and consumption warranties.
CONSTRUCTION OF WARRANTY -- OIL COMPANIES APPROVALS CLAUSE -- "TBOOK" DEFINED -- Owner Award
At the time of the fixture, Owner alleged that the Vessel was approved by five oil majors as required by the charter. Thus, when Charterer’s buyer rejected the Vessel due to a sea-chest valve needing repairs as imposed by the Class survey, a sale was lost with Charterer incurring substantial damages. The Commercial Court ruled Owner had breached the Oil Companies Approval Clause. The Court of Appeal overturned the Commercial Court’s ruling and clarified the meaning of the acronym "TBOOK" and the word “approved” in regards to the charter's majors approval requirement.
SUGAR CHARTER PARTY 1999 -- INVALID NOTICE OF READINESS -- DEMURRAGE -- ALLEGED SERIOUS IRREGULARITY BY ARBITRATORS -- Owner Award
In ruling for Charterer in an arbitration on documents alone, the Panel noted that as Charterer had not introduced the case of "The Happy Day", the inclusion of which may have further reduced Charterer's demurrage obligation, the Panel need not consider it. Charterer subsequently appealed to the High Court on the basis that the arbitrators, knowing Charterer had made a concession, had a duty to alert Charterer and failing to do so it constituted a serious irregularity.
GAFTA FORM 120 -- FOB SALE -- INSUFFICIENT ETA NOTICE -- REPUDIATORY BREACH -- Buyer Award
When the FOB Buyer failed to nominate the vessel at least 7 working days prior to vessel's ETA, Seller rejected the nomination. Despite non-conformity with the contract’s ETA requirement, this was not a sufficient basis for Seller to repudiate the contract.
BALTIME 1939 -- VESSEL BREAKDOWN -- WRONGFUL TERMINATION -- REPUDIATORY BREACH -- DAMAGES -- Owner Award
When Charterer emailed Owner that Owner had committed breaches of two time charter parties amounting to repudiations and that the two charter parties were terminated, Owner responded by stating Charterer's email was itself a repudiatory breach and that the charter parties were thusly terminated. Owner claimed damages in the form of lost profits due to early redelivery, unpaid hire and fees, detention at the disport and the cost incurred when containers were left on board one of the vessels at redelivery.
BALTIME 1939 -- NON-PAYMENT OF HIRE AND BUNKERS -- REPUDIATORY BREACH -- QUANTUM MERUIT FOR COMPLETION OF VOYAGE -- Owner Award
When Charterer failed to pay three installments of hire, other expenses and arrange and pay for bunkers under a time charter contract, Owner first informed Charterer that they were suspending performance of the charter until outstanding hire was paid and then three days later, informed Charterer that they accepted Charterer's repudiatory breach. At the time of the repudiatory breach the Vessel was at sea en-route to the disport and in fact Vessel continued on to the disport and discharged Charterer's cargo.
WORLDSCALE -- PORT EXPENSES -- AMOCO CLAIMS CLAUSE -- TIME BAR -- Charterer Award
When Charterer directed the Vessel to a port which did not have an established Worldscale (WS) rate, Charterer advised Owner that port expenses would be for Charterer's account. When Owner's claim for port expenses arrived 155 days after discharge, Charterer rejected the claim stating it was barred under the Amoco Claims Clause.
