2024 Maritime Digest of Arbitration Awards and Court Rulings
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.
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.
ASBATANKVOY -- WHETHER BERTH CONGESTION IS BEYOND CHARTERER’S CONTROL -- NOTICE OF READINESS PRIOR TO FREE PRATIQUE -- PRORATED LAYTIME -- Owner Award
Charterer attempted to dispute Owner's demurrage claim on the basis that berth congestion was a condition beyond charterer's control per ASBATANKVOY Clause 6, time cannot commence until the vessel is in free pratique, and time spent simultaneously discharging another charterer's cargo should be prorated.
EXXONMOBIL VOY 2005 -- INTEREST ON UNDISPUTED DEMURRAGE -- ADVERSE WEATHER -- DEPARTURE DELAY DUE TUGS -- SIGNING DOCUMENTS -- REDELIVERY OF LIGHTERAGE EQUIPMENT AND MOORING MASTER -- Partial Owner Award
At issue is whether Charterer is responsible for interest on a late payment of undisputed demurrage, whether weather related delays existed within the context of ExxonMobil VOY2005's Clause 14, whether Charterer or Owner was responsible for the delay in departing berth due to a lack of tugs, whether time ceased at documents onboard or upon signing, and the assessment of time after a transshipment i.e. whether time stops at hoses off or upon the Vessel redelivering the lighterage equipment and mooring master.
EXXONMOBIL VOY 2000 -- MISSING ANCHOR -- INTERIM CLASS CERTIFICATE -- SEAWORTHINESS -- SAFE PORT -- DETENTION -- ROLE OF AGENT -- Partial Owner Award
At issue is whether the Owner is in breach of the seaworthiness obligation or Charterer failed to nominate a safe port; and, the relevant assessment of demurrage and detention. Just prior to the fixture, Vessel lost 1 of 2 forward anchors. After obtaining class approval to operate with one anchor temporarily, Vessel tendered NOR at Charterer's load port, informed the Vessel's agent of the missing anchor, loaded and proceeded to the disport range of Northern Chile. After waiting several days, Vessel was instructed to the disport but the pilot refused to berth her given the port's two-anchor requirement. After a replacement anchor was fitted the Vessel encountered delays at subsequent discharge ports due to lack of tankage. In addition to demurrage, Owner claimed detention from Vessel's arrival off Chile until berthing at the first discharge berth.
GENCON -- DEMURRAGE -- TIDE -- EXCESSIVE AIR DRAFT -- TERMINAL BREAKDOWN OR BAD WEATHER -- Partial Owner Award
Whilst loading, operations ceased due to excessive air draft of the Vessel during high tide. Later operations stopped again due to either the breakdown of the terminal’s camera or bad weather. Owner claimed demurrage during both delays which Charterer refuted.
GENCON -- SOF VS METEOROLOGICAL REPORT -- FREIGHT CALCULATION WHEN DISPORT NOT NAMED IN FIXTURE -- Partial Owner Award
At the disport the Vessel’s statement of facts (SOF) referenced possible weather related delays yet when Charterer attempted to deduct said delays from time counting, Owner produced a weather report for a nearby port which reflected fair weather during the time in question. Additionally, there was a dispute over the calculation of freight when the nominated disport, albeit an acceptable port option, was not within any of the port ranges in the fixture’s freight rate schedule.
CIF SALES CONTRACT -- WIBON -- BERTH CONGESTION CONCURRENT WITH TIDE DELAY -- Seller Award
Upon arrival at the discharge port the berth was occupied and inaccessible owing to tide. Per the WIBON phrase in the CIF Sales Contract, Notice of Readiness (NOR) could be tendered prior to arrival in berth should the berth be occupied. The Buyer, however, argued that in this instance NOR must be tendered at the berth since congestion was not the sole cause of delay.
NYPE -- REPUDIATED TIME-CHARTER -- MEASURE OF DAMAGES -- Charterer Award and Seller Award
This court case is an appeal by Charterer of an arbitration award. When the economy went sour, Charterer wrongfully repudiated a time-charter contract. At the time of the repudiation there was no available long-term charter market on which to base Owner’s damages. About six months later an available market developed. The arbitration panel awarded Owner damages using a hybrid assessment: actual losses based on spot trading and then market losses once a long-term charter market emerged (despite Owner opting, for own business reasons, to continue trading on the spot market).
FOB SALES CONTRACT-- LETTER OF INDEMNITY -- WRONGFUL DELIVERY -- SALES CONTRACT -- Owner Award
The Vessel discharged cargo without presentation of Bills of Lading (B/Ls) per the Receiver's Letter of Indemnity (LOI) to the Voyage Charterer. FOB Seller successfully claimed damages from Owner for delivering cargo without presentation of the Bills of Lading with Owner subsequently claiming indemnity from Receiver as Owner had acted as an agent of Charterer as referenced within the LOI.
