2024 Maritime Digest of Arbitration Awards and Court Rulings
SHELLTIME 4 -- MARPOL -- CHANGE OF INTERNATIONAL REGULATION -- TIME CHARTER -- CARGO RESTRICTIONS -- COMMERCIAL RISK -- DUE DILIGENCE -- Charterer Award
This arbitration began as a result of MARPOL international regulation changes during the operating period of this specific time charter. Due to these changes, the two operating Vessels became legally unable to carry their contracted cargo. This ruling settles which party should bear the commercial risk.
NYPE -- HULL DAMAGE -- ICE -- ANCHORAGE -- SAFE PORT WARRANTY -- CHARTER PARTY CONSTRUCTION -- Owner Award
En route from disport, the Vessel suffered hull damage from ice and the Owner submitted a claim for damage compensation. The Charterer contended that ice was an obvious expectation at this specific disport during the winter, and therefore, the risk was borne by the Owner upon the port’s acceptance. The Owner defended stating that the charter outlined that all berths, ports and anchorages must be safe regardless of acceptance implications.
GENCON -- DETENTION -- VESSEL MASTER -- DELAYED LAUNCH FOR CARGO INSPECTOR -- Owner Award
Although several issues were disputed in arbitration, only the detention claim item will be recapped. The Owner filed for detention damages when the Vessel was delayed at port because there was no launch available for the port’s inspector after nightfall. The Charterer, however, contended that it was customary at the given loadport for the vessel master to be responsible for such launches.
SALES CONTRACT -- CARGO -- BREACH -- WRONGFUL CANCELLATION -- MEANING OF LAYCAN IN SALES CONTRACT -- Seller Award
In this contract, the Buyer had to nominate a performing Vessel for the voyage, narrow the laycan to a two day period, and then the Seller would have to load the Vessel in 36 + 6 hrs. The Buyer performed all contracted requirements; however, upon arrival, the Seller’s plant was unable to supply cargo within the contracted load window. The Buyer subsequently claimed that the Seller violated the contract and canceled the transaction.
TIME CHARTER -- SPEED WARRANTY -- CONSUMPTION WARRANTY -- SPEED CALCULATION -- SEA CURRENT FACTOR -- WEATHER FACTOR -- FAVORABLE CURRENTS -- Owner Award
This arbitration concerns the interpretation of the time chartered Vessel’s speed and consumption warranties, specifically, if the Vessel's actual speed performance be reduced by taking beneficial sea currents into account.
ASBATANKVOY -- SHORTLOADING -- WITHHELD FREIGHT -- TWO BOTTOMS -- DAMAGES -- Owner Award
In compensation for damages (specifically shortloading, an address commission on freight issue, legal and administrative costs) incurred by the Owner, the Charterer made an unauthorized freight deduction from the contracted pay amount. In the partial award of SMA No. 3965, the sole arbitrator ruled that the withheld freight and the claim for damages would be addressed in two different rulings. The withheld freight was addressed in the aforesaid partial award and the remaining items are discussed herein.
ASBATANKVOY -- DELAY -- FAILURE TO PROSECUTE -- DISMISSAL -- Partial Owner Award
The Charterer began arbitration to recover damages resulting from an Owner breach of contract and demanded for an immediate partial reward. However, the Charterer delayed to prosecute the manner beyond the claim’s submission and after eight years of delayed prosecution, the Owner moved to dismiss the case.
Replacing their “Equiva Trading Company Marine Provisions for Tankers, Tows and Barges Effective December 1, 1998”, Shell Trading (US) Company, STUSCO, recently introduced new General Terms and Conditions (GT&Cs). Intended to be equitable whether selling FOB, CFR, CIF or Delivered, STUSCO’s new GT&C’s is entitled “Shell Trading (US) Company General Terms and Conditions for the Sale and Purchase of Refined Products August 1st 2007”.
ASBATANKVOY -- SHORTLOADED -- DRAFT -- BAD WEATHER -- SILTING -- DEADFREIGHT -- SAFE PORT WARRANTY -- Partial Owner Award
At loadport, the Vessel could only safely load to a less-than-contracted draft level due to bad weather conditions and excess silting. The Owner demanded that the Charterer pay deadfreight for the voyage due to negligence in declaring a safe vessel berth. The Charterer, however, believed that it was the Owner’s responsibility to validate the port’s safety and that the contractual term "safe port" was not a warranty but a mutual agreement that the port was safe.
GENCON -- CARGO -- CONTAMINATION -- BILL OF LADING -- LOADPORT -- STATEMENT OF FACTS -- LETTER OF INDEMNITY -- Owner Award
After loading a clearly contaminated cargo, the Charterer and Owner disputed over whether the contamination should be mentioned in the Bill of Lading, which resulted in vessel delays at loadport. The Charterer believed that the contamination could be logged in the statement of facts and withheld the Letter of Indemnity until a clean B/L was issued. The Owner therefore blamed the delay on the Charterer.
