2024 Maritime Digest of Arbitration Awards and Court Rulings

London Arbitration 4/06

SYNACOMEX -- DEADFREIGHT -- CHARTER PARTY -- CARGO -- DOCK -- BUNKER -- PORT -- SHIFT TIME -- SHORTLOAD -- SHIFT TIME -- ONCE ON DEMURRAGE ALWAYS ON DEMURRAGE -- DETENTION -- Partial Charterer Award In this case, the Charterers failed to provide the contracted amount of cargo and agreed to pay the deadfreight rate stipulated in the Charter Party. However, the Charterers argued that the benefits of deadfreight, such as dock savings, bunker savings, and savings on port charges, should offset the net deadfreight cost billed to them.
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London Arbitration 3/06

VOYAGE CHARTER PARTY -- DEADFREIGHT -- DRAFT RESTRICTIONS -- DISCHARGE PORT -- CHARTER PARTY -- QUANTITY IN OWNER’S OPTION -- Charterer Award In order to meet draft restrictions at disport, the Charterers loaded less than the maximum capacity allowable by the Vessel. In response to the subsequent deadfreight due to the Charterers’ port selection, the Owner started arbitration referencing that the Charterers violated the "always accessible" port clause in their charter and demanded that the deadfreight be compensated.
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Arcadia Petroleum Ltd. v. Sun International Ltd. (The “Madelaine”) – No. 05-1259. 3rd Circuit, 18 Aug 2006

ASBATANKVOY -- CHARTER PARTY -- DEMURRAGE -- TIME BAR -- Charterer Award A clause in this case’s Charter Party stated that all claims become void unless arbitration begins within one year post-voyage. But after reaching a subsequent demurrage agreement with the Charterer within the specified timeframe, the Owners began arbitration several years later stating that this informal agreement constituted a recognizable second contract.
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Interchem 2000 Logistics BV v. Suffolk Tankers Co. Ltd. (The “Rachel B”) – SMA No. 3920, 12 Apr 2006

BURDEN OF PROOF -- SEAWORTHY -- BARGING COSTS -- STORAGE FEES -- THROUGHPUT CHARGES -- Partial Owner Award The Charterers sought arbitration for additional barging costs, storage fees, and throughput charges because of Owner's failure to provide a seaworthy vessel. Such charges, however, require the Charterers to support their claim with ample evidence.
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Japan Sun Oil Company v. Jo Tankers BV (The “JO Brevik”) – SMA No. 3919, 9 Apr 2006

BURDEN OF PROOF -- ARBITRATION -- CARGO CONTAMINATION -- CARGO -- PORT -- BURDEN OF PROOF -- Owner Award Upon arriving at the discharge port, the Vessel’s cargo was discovered to be heavily contaminated with sea water. The Charterers subsequently began arbitration to recover expenses; however the Charterer’s claim must prove that cargo quality was intact before voyage and was contaminated after discharge.
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Odfjell Seachem AS v. Clariant Corp. (The “Bow Favour”, “Bow Andino”, & “Bow Gorgonilla”) – SMA No. 3915, 21 Feb 2006

ASBATANKVOY -- DEMURRAGE -- FREIGHT -- ARBITRATION -- VOYAGE -- INTEREST ON FREIGHT AND DEMURRAGE -- Owner Award After outstanding demurrage and freight bills for three separate voyages, the Owner began arbitration to recover lost profits and interest. Although the Charterer did not participate in the proceedings, the sole arbitrator pointed out several issues with the Vessel's NOR at the loadport which could have been contested.
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China Shipping Development Co. Ltd. v. Richshine Metal, Inc. (The “Sea Light II”) – SMA No. 3907, 14 Dec 2005

VOYAGE CHARTER PARTY -- LAYDAY -- CARGO -- CHARTER PARTY -- DEMURRAGE -- DEADFREIGHT -- DETENTION -- WRONGFUL CANCELLATION -- Owner Award The Vessel arrived at loadport and tendered NOR within laycan, however the Charterer failed to supply the cargo. The Charterer, after fourteen days of expressing to the Owner that loading would begin soon, cancelled the Charter Party because of "unexpected problems." The Owner subsequently demanded compensation for damages to demurrage, deadfreight, and detention.
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Jo Tankers BV v. Tankers Bahamas Ltd. (The “Jo Eik”) – SMA No. 3905, 28 Nov 2005

EXXONMOBIL VOY2000 -- PURGE -- VOYAGE ORDERS -- LOAD PORT -- CONTRACT OF AFFREIGHTMENT -- CARGO HANDLING INSTRUCTIONS -- Charterer Award This arbitration stems from the Contract of Affreightment on ExxonMobil Voy2000 and the responsibility of nitrogen purging. In this case, when the Vessel reached the load port, the Charterers refused Vessel loading because the tanks were not purged to the cargo’s required .5% O2 level. The Owners, however, brought evidence proving that the specific purging requirements were not included in the COA or the voyage orders.
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London Arbitration 22/05

NYPE -- ARBITRATION -- VOYAGE -- DRAFT -- TANKER -- DISPORT -- TIME CHARTER – CHARTERER ORDERING VESSEL TO LOAD TO ARRIVAL DRAFT OF 11 METRES – OWNER REFUSING BASIS OFFICIAL DRAFT RESTRICTION AT DISPORT OF 10.5 METRES -- Owner Award This arbitration centers on the Owner’s refusal to load His/Her vessels on four voyages during March/May to a full arrival draft of eleven meters. Instead, He/She used a safer draft of 10.5 meters in accordance with Navtex costal warnings during these months. The Charterers, however, brought arbitration against the Owner with evidence that the discharge port authority was berthing vessels up to the desired eleven meters draft.
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London Arbitration 21/05

GENCON -- LOADPORT -- BERTH -- SHIFTING -- DETENTION -- DEMURRAGE -- WHETHER CHARTERER LIABLE FOR DETENTION OR BREACH OF CHARTER FOR FAILURE TO BERTH VESSEL – WHETHER CHARTERER AT FAULT FOR BERTHING VESSEL OUT OF TURN – VALIDITY OF NOR -- Owner Award Although the Vessel had arrived and tendered NOR at loadport, another vessel was berthed out of turn. Subsequently, the Owner claimed detention at the demurrage rate for the four days of delay that the Charterer incurred by berthing the second vessel out of turn.
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