2024 Maritime Digest of Arbitration Awards and Court Rulings

London Arbitration 8/05

ARBITRATION -- VOYAGE -- DEMURRAGE -- SPEED WARRANTY -- SEAWORTHINESS -- SPEED WARRANTY – LOSS OF ANCHOR CHAINS -- UNSEAWORTHINESS OR UNSAFE PORT/BERTH - VALIDITY OF NOR -- Owner Award The arbitration following the Vessel’s voyage encompassed several key demurrage arguments. Disputes center around the Vessel speed warranty and the application of the word "about", the fault for broken anchor chains (Charterer port unsafety or Owner Vessel unseaworthiness), and the validity of subsequent NOR tender if the anchors were broken.
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London Arbitration 7/05

ASBATANKVOY -- LOADPORT -- LOAD OPERATIONS -- DEMURRAGE -- ARBITRATIONT -- CARGO CONTAMINATION -- LIABILITY FOR DEMURRAGE, FREIGHT, DEADFREIGHT AND DAMAGES -- Owner Award The Vessel arrived at loadport, passed surveyor inspection, and began loading cargo. However, when the surveyor inspected the cargo after partial loading, He/She rejected the loaded cargo because of floating particles in the sample. After the voyage, the Owner claimed that the surveyor passed the Vessel before loading and filed demurrage for the tank cleaning delays.
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London Arbitration 4/05

ANCHORAGE -- CHARTER -- ARBITRATION -- BERTH -- LOAD OPERATIONS -- VESSEL ARREST -- VALIDITY OF NOR – HOLIDAY -- Owner Award After arriving at anchorage, the Vessel was arrested for reasons concerning previous charters. Once the Vessel had passed inspection by authorities but not before being released, it tendered NOR. At arbitration, the Charterers refute the tender saying that the Vessel could not shift to berth while arrested; yet, the Owners stipulate that, in fact, the court order specifically allowed berthing and the commencement of load operations.
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Masefield Trading, AG v. Shell Oil Company – SMA No. 3855, 30 Jul 2004

SALES CONTRACT -- SHIPPING -- DEMURRAGE -- ARBITRATION -- DETENTION -- PORT -- CARGO -- VETTING -- Buyer Award The Buyer preliminarily contacted the Seller to ask if the Vessel characteristics agreed with Seller requirements for shipping. After granting approval, the Seller allegedly sent documents stipulating that the agreement was conditional on whether the Vessel had an operating VR system. However, the Buyer never received such stipulations and submitted demurrage for delays at port when the Seller refused Vessel loading without VR.
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Odfjell Asia Pte. Ltd. v. Vinmar Singapore Pte. Ltd. (The “Bow Marino” & “Bow Giovanni”) – SMA No. 3853, 28 Jun 2004

ASBATANKVOY -- ARBITRATION -- PUMP WARRANTY -- MANIFOLD -- DEMURRAGE -- LATE PAYMENT -- PUMP WARRANTY -- Owner Award This arbitration centers around the finer aspects of the pump warranty. In this case, the Charterers argue that the agreed pressure at the Vessel’s manifold was not maintained throughout the unloading. The Owners, on the other hand, stipulate that the referenced pressure drops were at the beginning and end of discharge, a common safety and loss prevention practice.
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Global Container Lines, Ltd. v. The Rice Co. (The “Berrak N.”) – SMA No. 3850, 23 Jun 2004

NORGRAIN 89 -- CHARTER PARTY -- GOVERNMENT CURFEW -- CARGO -- DEMURRAGE -- BERTH -- DISPORT -- Owner Award The Charter Party specifically stated that if cargo cannot be discharged because of "Civil Commotions," then there cannot be any demurrage claim for lost time. But, when the Vessel berthed at disport and a national curfew was in place, the Owner filed for demurrage regardless arguing that the curfew did not prevent the cargo from being discharged, but instead the subsequent lack of trucks leaving the port was the root cause of detainment.
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Marbulk Shipping, Inc. v. Martin Marietta Materials, Inc. (The “Bahama Spirit”) – SMA No. 3849, 4 Jun 2004

CONTRACT OF AFFREIGHTMENT -- BERTH -- DISPORT -- DREDGE PIPE -- CHANNEL -- GROUNDING -- ARBITRATION -- UNSAFE BERTH -- Charterer Award While moving to berth at disport, the Vessel ran aground on an abandoned dredge pipe in the navigation channel. The Owner followed suit with an arbitration charge for the damages sustained in the grounding, claiming that the Charterer had breached the safe berth warranty. The Charterer counterclaimed that the Owner faulted the grounding citing the Owner’s frequent usage of the port in the past as well as the lack of prior Owner proof that the berth was unsafe.
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Odfjell Seachem A/S v. Continentale Des Petroles et D’Investissesments and Anr (The “Bow Cedar”) – QBD (Comm. Ct.), 15 Dec 2004

BPVOY 4 -- CHARTER PARTY -- CARGO -- LAYTIME -- TIME-BAR -- Owner Award After the Vessel had arrived, tendered NOR, and waited for berthing instructions until after the 84H laytime allowance expired, the Charterer cancelled the Charter Party due to being unable to supply cargo. The Owner responded with a damages claim eleven months later; however, there is a stipulation in the charter that states that any claim after 180 days is time-barred.
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London Arbitration 34/04

SHELLTIME 4 -- CARGO -- CONTAMINATION -- DEADFREIGHT -- POSSESSORY LIEN -- DISPORT -- TIME-CHARTER -- OFF-HIRE -- Owner Award In response to a Charterer agreement to use the unclean Vessel for transporting sub-Charterer's naphtha cargo, the sub-Charterer refused to load the Vessel to full capacity in fear of cargo contamination. The Charterer subsequently claimed deadfreight and incurred a possessory lien for over a month at disport. Under the time-charter contract, the Owner seeks hire payment for the month-long arrest which the Charterer deducted as off-hire.
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Petroleo Brasileiro v. Citgo Petroleum Corp. (The “Kriti Akti”) – SMA No. 3845, 25 May 2004

ASBATANKVOY -- CARGO -- BARGE -- BERTH -- PORT -- DEMURRAGE -- ACT OF GOD -- Owner Award After part cargo discharge to barge, bad weather delayed the Vessel’s berth at port thereby incurring an Owner demurrage claim. The Charterer agreed to the fine, however, requested that this claim be offset by consolidating it with other outstanding claims that the Owner owes to the Charterer (making net demurrage due Charterer).
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