2024 Maritime Digest of Arbitration Awards and Court Rulings

Featured / U.S. Maritime Cases

Phillips 66 Company v. Yamuna Spirit, LLC, Teekay Chartering and Teekay Marine (The “YAMUNA SPIRIT”) – SMA No. 4454, 12 January 2023

OIL SHEEN – OIL LEAK – OIL SPILL – MARINE TERMINAL LEAK – VESSEL LEAK

On September 19, 2016, the YAMUNA SPIRIT began discharging her Arabian Extra Light crude cargo at the Phillips 66 Marine Terminal, Rodeo Refinery, California. Shortly after operations commenced, a series of odors and oil sheens were observed nearby in San Pablo Bay, San Francisco. The parties, in cooperation with the USCG and state agencies, conducted extensive investigations and testing to determine whether the source of the leak was the Terminal or Vessel. Both parties contended that the other was the source of the oil. Arbitration was sought to establish responsibility for the leak and recover the expenses associated with the oil spill responses, investigations, and legal fees.

Featured / U.S. Maritime Cases

SwissMarine Pte Asia v. Mosaic Fertilizer (MN “PRESINGE”) – SMA No. 4457, 10 March 2023

BREACH OF COA – FAILURE TO PROVIDE SAFE BERTH – FAILURE TO NOMINATE SAFE VESSEL – DEMURRAGE – FORCE MAJEURE – WEATHER – HURRICANE – LOST TIME

SwissMarine and Mosaic Fertilizer had a COA for the carriage of phosphate rock from Peru to the US Gulf for discharge at either New Orleans Triport and/or Tampa – Port Manatee. On the way to discharge at Tampa, concerns were raised by the Port that the Vessel could not safely berth, so the vessel was diverted to New Orleans. Shortly after arrival at anchorage on the Mississippi River, the US Coast Guard limited marine traffic due to the impending arrival of Hurricane Ida. Mosaic declared force majeure, and the PRESINGE did not complete cargo operations until 38 days later. Owners alleged demurrage was due and that Charterers were in breach of COA for failing to provide a safe berth. Charterers countered that no demurrage was due because of the force majeure event, and Owners were in breach of COA for failing to nominate a safe vessel.

English Maritime Cases

London Arbitration 2/23

DEMURRAGE – GROUNDING – SAFE PORT – SEAWORTHY – NEGLIGENCE – NYPE 1981
The subject vessel was chartered for a one-time charter trip with one leg via Indonesia to China. The vessel grounded while under pilotage in the port of Chaozhou. She suffered damage to her port side hull structure. The owner claimed that the port was unsafe and in breach of the charterparty. The charterer claimed the damage was due to negligence in navigation and unseaworthiness.

English Maritime Cases / Featured

Leeds Shipping Co Ltd v. Societe Francaise Bunge (The “EASTERN CITY”) – COURT OF APPEAL (Hodson, Romer, and Sellers LJJ) – 30 July 1958

UNSAFE PORT – MOROCCO – UNPREDICTABLE WEATHER CONDITIONS -GROUNDING OF VESSEL – ALLEGED NEGLIGENCE OF MASTER
Editor’s Note: This 1958 case set the industry standard for determining a safe berth and is referenced in two new recaps: London Arbitration 2/23 and SMA No. 4457 “PRESINGE.”
Leeds Shipping and Societe Francaise were parties to a voyage charterparty with the vessel discharging in “…One or two safe ports in Morocco…” This appeal challenged a previous decision in favor of Leeds Shipping, which claimed Charterers ordered the vessel to an unsafe port, Mogador, where she ran aground and sustained damage. Societe Francaise denied that Mogador was an unsafe port and asserted by accepting the voyage, Owners had consented to the vessel going to Mogador. Charterers also claimed the negligence of· the Master caused the vessel’s grounding.

U.S. Maritime Cases

XCoal Energy v. Classic Maritime – SMA No. 4450, 16 August 2022

DAMAGES – COVID-19 – COA BREACH – BURDEN OF PROOF
A December 2, 2019 contract of affreightment between XCoal Energy and Classic Maritime stated XCoal was to provide cargos for 6 – 7 vessels during the year 2020. Due to the Covid-19 pandemic, XCoal was only able to provide cargo for two vessels. Classic believed they should have been awarded damages of over US$ 4.4 million for the breach, however, XCoal asserted they owed far less, claiming Classic did not meet the burden of proof to warrant this higher claim.

U.S. Maritime Cases

Team Tankers Deep Sea v. Tauber Petrochemical (MT “TEAM TOCCATA”) – SMA No. 4441, 18 March 2022

DEMURRAGE – COVID-19 – FORCE MAJEURE – DUE DILIGENCE – PANDEMIC
On March 25, 2020, the Gujarat Maritime Board issued a declaration of a Force Majeure Event at Dighi Port where Team Toccata was due to berth after its discharge was completed at Kandla on April 19, 2020. Team Tankers Deep Sea claimed that the charterer, Tauber Petrochemical, owed demurrage for the entire 118.5 hours Team Toccata waited at Dighi before proceeding to the berth regardless of the force majeure event.

English Maritime Cases

London Arbitration 31/32

DEMURRAGE – DETENTION – GENCON 94 – AWAITING ORDERS
The subject vessel was chartered to carry wheat from the Russian Federation to Turkey. The owners claimed damages for detention at the discharge port, calculated at the demurrage rate. However, the charterer denied the provisions of the charterparty entitled the owner to these damages, and asserted the owner was only entitled to demurrage.

English Maritime Cases

London Arbitration 21/19

DEMURRAGE – TROPICAL STORM- FORCE MAJEURE – DUE DILIGENCE – BAD WEATHER CLAUSE – TERMINAL CLOSING – PORT CLOSING – HURRICANE
A vessel chartered under a contract of affreightment was scheduled to load 60,000 mt of coal from a terminal on the Mississippi when the terminal ordered her to vacate the berth due to an impending hurricane. The owner claimed demurrage of US$330,495 for the time spent awaiting the vessel’s return to the berth, however, the charterer denied any liability for the demurrage incurred claiming bad weather, events outside of their control, and force majeure.

English Maritime Cases

London Arbitration 32/22 

AMENDED NYPE – TIME CHARTER – DEDUCTIONS FROM HIRE- SPEED AND CONSUMPTION- GOOD WEATHER AND SMOOTH SEA- WEATHER CONDITIONS – WEATHER ROUTING COMPANY REPORT
The subject vessel was chartered on an amended NYPE to transport steel from Brazil to Baltimore. After the voyage, the owners claimed a balance of hire which the charterers subsequently denied. Under dispute were speed and consumption, vessel weather reporting, and the weather routing company report.

English Maritime Cases

Sea Master Shipping Inc v. Arab Bank (Switzerland) Ltd and Another (The “Sea Master”) – QBD (Comm Ct), 28 July 2020

NORGRAIN 89 FORM – INSOLVENT CHARTERER – DEMURRAGE – DAMAGES – COGSA 1992 – CARGO FINANCING – RECEIVERS
Seamaster Shipping, the registered owner of the subject vessel Sea Master, appealed an earlier court decision dismissing their claim for demurrage, or damages in lieu of demurrage, due to delays at the discharge port during a charter to Agribusiness United DMCC.