2024 Maritime Digest of Arbitration Awards and Court Rulings
EXXONMOBILVOY 2000 -- DRAFT RESTRICTIONS -- LIGHTERAGE EXPENSES -- PROMISE TO PAY -- SAFE BERTH -- TIME BAR -- Charterer Award
The Master was instructed to load the Vessel to meet a brackish water draft to safely transit the channel in the discharge port, but used an incorrect factor to make his calculations. On arrival, the Vessel's draft was too deep and she had to be lightered in order to proceed to the discharge berth. The Panel was asked to determine whether the discharge berth was a "safe berth" and decide which party was responsible for lighterage delays and costs. This dispute also addressed whether a late-presented claim could be time-barred considering the respondent had initially promised to pay.
ASBATANKVOY -- NOTICE OF READINESS PRIOR COMMENCEMENT OF LAYDAYS -- USCG COC INSPECTION -- CONTRACT CONSTRUCTION -- Owner Award
The Vessel arrived and tendered Notice of Readiness (NOR) just prior to the commencement of laydays, but waited several days because the port was closed due to a hurricane. On berthing, the Vessel had to obtain a Certificate of Compliance (COC) before any loading operations could begin. Charterer refuted Owner's demurrage claim, declaring that the Notice of Readiness (NOR) was invalid as the NOR was tendered prematurely (prior to the laydays) and Vessel was not legally ready to load without the COC. The arbitrator reviews the charter terms and facts to determine the validity of NOR and the commencement of laytime.
NYPE -- OFF-HIRE -- SEAWORTHINESS -- WAITING TIME -- Owner Award
After waiting eight days at the loadport to berth, cracks were found in the Vessel's hull necessitating repairs. Charterer argues that the deficiency invalidates the waiting time and that the Vessel was off-hire or, alternatively, presents a claim for damages due to demurrage lost under a sub-charter.
NYPE -- CLEANLINESS OF HOLDS -- VESSEL FIT FOR SERVICE -- OFF-HIRE -- Owner Award
The Vessel was approved for the first voyage under a time charter and carried out the first voyage without incident. Prior to the second voyage, the holds were rejected due to stains from a cargo carried just prior to the commencement of the time charter. After five days of cleaning, the holds were approved. In dispute is Charterer's claim for off-hire and expenses during the cleaning.
NYPE -- PIRACY -- CHARTERPARTY LANGUAGE -- WHETHER VESSEL CAN BE CONSIDERED OFF-HIRE -- Owner Award
Charterer appealed to have all time that the Vessel was held by pirates count as off-hire. The High Court examined whether the Vessel was prevented from working due to any of the three causes listed in the charter party: a) detention by average accidents to ship or cargo; b) default and/or deficiency of men; c) any other cause.
BREACH OF SAFE PORT WARRANTY -- BEYOND CHARTERER'S CONTROL -- WHETHER DELAY COUNTED AS LAYTIME -- DEMURRAGE -- Owner Award
After nominating the loadberth an accident occurred forcing its closure for repairs. Owner claimed demurrage for the time spent by the Vessel awaiting the repair of the berth, but Charterer refuted the claim basis the notion that the accident was beyond Charterer’s control. In addition, the Court was asked to determine whether the berth was safe at the time it was nominated due to the complex mooring maneuvers required in order for vessels to safely berth.
Oftentimes, demurrage claims issued by commercial trading partners under contracts of sale are disputed and a copy of the ship owner’s demurrage claim is requested, allegedly to support the merit of the claimant’s invoice. However, unless the stipulation to provide the Owner’s claim is expressly required within the contract terms, it is unnecessary to be disclosed as demurrage is not considered an indemnity (compensation for a loss suffered). Contrary to popular belief that a party cannot benefit by demurrage, English law holds that there is an absolute obligation to pay demurrage incurred under the terms of a sales contract. There is nothing to prevent a profit from being made on a legitimate demurrage claim [Houlder Brothers Co. Ltd. V. Commissioner of Public Works [1908] AC 276].
ASBATANKVOY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- Owner Award
Owner seeks recovery of demurrage encompassing over 17 days that the Vessel spent awaiting cargo at the loadport which, despite Charterer’s repeated promises, the cargo was never forthcoming causing Owner to terminate the fixture. The Panel rules on a remedy for Owner's lost time.
ASBATANKVOY -- FORCE MAJEURE -- HURRICANE -- WRONGFUL CANCELLATION -- DUE DILIGENCE -- Seller Award
The CFR Buyer declared force majeure after its Pasadena, TX facility was struck by Hurricane Ike and cancelled one of two CFR contracts with the Seller. The dispute concerns whether the event constituted force majeure within the context of the sales contract, whether the sales contract allowed Buyer to cancel the contract and whether Buyer's steps to restore operations at its facility constituted the due diligence required.
ASBATANKVOY -- WHETHER DEMURRAGE IS PAYABLE AFTER LOADING -- REVERSIBLE LAYTIME -- LATE ARRIVAL AT DISPORT -- DAMAGES -- Partial Charterer Award
With the Vessel arriving at the disport approximately 72 days later than projected for a customary 14-day voyage, the Charterer incurred $103K demurrage on two barges that were on standby to receive the cargo. After the Vessel arrived, Owner subsequently refused to discharge the cargo until Charterer remitted loadport demurrage. The issues decided by the Panel include liability of consequential barge demurrage and whether the Owner is entitled to collect demurrage prior to discharging when the fixture stipulates "reversible laytime".
