2024 Maritime Digest of Arbitration Awards and Court Rulings
NYPE -- LATE REDELIVERY -- WHETHER SUBSEQUENT LOST PROFITS WERE FORSEEABLE -- DAMAGES UNDER SUBSEQUENT FIXTURE -- Charterer Award
Following the late redelivery of the Vessel from a time charter, Owners were forced to renegotiate their next time charter at a lower rate. Owners claimed $1.3 million in damages and won the dispute. On this appeal by Charterers, the Panel overturned the previous ruling with the simple question "Would an objective person have anticipated such a large loss of profits from the redelivery of a time chartered vessel made nine days late?" The award details the Panel's ruling and settlement.
ASBATANKVOY -- SAFE PORT WARRANTY -- INABILITY TO PROVIDE FULL CARGO DUE TO SILTING -- DEADFREIGHT -- Owner Award
In this dispute, the Panel was called upon to determine the Charterer's liability following their failure to provide the minimum amount of cargo stated in the charter party due to draft restrictions caused by silting. The Panel explains what other options the Charterer could have exercised other than simply loading less cargo to the Vessel.
ASBATANKVOY --ONE SAFE BERTH -- ADDITIONAL BERTH COSTS -- DEMURRAGE -- Owner Award
Although the Vessel was fixed basis "one safe berth" for discharging, an agreement was made after the fixture adding a second berth. Owner commenced arbitration to recover the additional costs and demurrage incurred during the voyage.
ASBATANKVOY -- DISCHARGING PREWASH SLOPS -- DEMURRAGE -- Partial Owner Award
Although Charterer didn't respond to Owner's initiation of arbitration proceedings, the Panel took matters into their own hands and edited the demurrage claim for time spent discharging slops. This award explains why.
Intrinsic to long-term profitability in the commercial cargo trades is the creation of a comprehensive set of marine provisions. When buying or selling cargoes via marine transport many companies incorporate express demurrage terms defining the assessment of liability basis the type of transaction. These clauses are generally referred to as marine provisions and although some companies may apply these provisions to either sales or purchases, as the seller’s contract is generally the contract that governs the transaction, the majority of provisions are geared towards protecting the seller. Nevertheless, there are also those companies that, when selling, fail to have the foresight to incorporate specific marine provisions into their contracts.
VEGOILVOY -- SUBSTANTIAL FAILURE OF EPOXY COATING OF CARGO TANKS -- TANK LINING -- VESSEL SUITABILITY -- WHETHER OWNERS IN BREACH OF CHARTER -- Charterer Award
The Charterer's inspector rejected the Vessel's tanks due to severe corrosion and rust, and declared the Vessel unsuitable. Charterer held the Owner in breach of the charter not only for the condition of the tanks, but also if the Vessel's tanks were actually epoxy coated as presented in the charter party. Charterer won the initial dispute in the Court of Singapore. Owners appealed, and this award details how the Court approached the issue.
NYPE -- TIME CHARTER TRIP -- SUBSTANTIAL DELAYS AT DISPORT -- IMPLIED TERM TO DISCHARGE WITHIN REASONABLE TIME -- OWNERS’ CLAIM FOR FINANCIAL LOSS -- Charterer Award
Under a NYPE form time charter, the Vessel delivered cargo to Lagos, but wasn't given berthing instructions for nine months. Owners commenced arbitration to recover lost profits from the delay in redelivering the Vessel. How did the Panel define "reasonable time" under a NYPE charter party? This Panel's ruling lays out what happens when parties don't include protective clauses with specific wording in their contracts.
GENCON -- DEMURRAGE -- WHETHER BERTH OR PORT CHARTER -- NIGHT TRANSIT -- GROUNDING -- AWAITING PILOT -- SHIFT TO BERTH -- Owner Award
This award covered a number of issues, including whether the fixture of "one safe berth" and a WIBON (whether in berth or not) constituted a berth charter party, whether or not port restrictions on night transits are demurrage events, and how a pilot shortage affected the Panel's ruling on waiting time and a grounding incident.
ASBATANKVOY -- INTERPRETATION OF RELOAD CLAUSE -- FREIGHT ASSESSMENT -- NUMBER OF CARGO GRADES CARRIED -- Charterer Award
During the discharge at Freeport, Charterers informed Owners that they planned on loading additional cargo after discharge operations completed. Owners commenced arbitration to recover this freight payment from Charterers. Charterers disagreed, claiming that they were within their rights to reload cargo at any discharge port within the scope of the charter party. This award describes how the Panel interpreted the special provisions clauses and applied them to the dispute.
ASBATANKVOY -- TIME-BAR -- CHARTERPARTY CONSTRUCTION -- HEATING AND PURGING -- Owner Award
Owners submitted a claim for additional heating and purging costs beyond the scope of the requirements in the charter party, but Charterers rejected the claim as time-barred. The Panel was called on to settle the dispute and explained how specific modifications to the charter party terms affected their ruling.
