2025 Maritime Digest of Arbitration Awards and Court Rulings
NYPE -- CHARTER -- VOYAGE -- ARBITRATION -- CONTRACT -- RE-DELIVERED VESSEL BUNKER COSTS -- Owner Award
The governing period charter rate, in this case, is defined by "per Platts Oilgram average on delivery." However, the delivery day price was not available until after voyage, so the prior day’s rate was used and then updated when the delivery day price was published. The Charterer refuted this change arguing that the updated average became available only after delivery and was in breach of the contract.
ASBATANKVOY -- COASTGUARD -- BERTH -- LOADPORT -- CHARTER PARTY -- LAYTIME -- DEMURRAGE -- Charterer Award
Once inspected by the coastguard, the Vessel was required to undergo minor repairs in order to comply with berthing standards at loadport. The Charter Party stipulates that any time loss resulting from non-compliance to safety regulations shall not count as laytime; however, the Owner filed for demurrage claiming that the infractions were minor and did not hinder the loading process.
ASBATANKVOY -- CARGO -- DEADFREIGHT -- VOYAGE -- ARBITRATION -- INVOICE -- Partial Owner Award
After the Vessel tendered NOR at loadport, the Charterer responded that the cargo was unavailable and agreed to pay the contracted deadfreight. The Charterer tried to make allowances for the deadfreight by negotiating another voyage, however, the new voyage was never carried out and the Owner subsequently began arbitration to recover the outstanding invoice.
ASBATANKVOY -- LOADPORT -- NAPHTHA -- CARGO -- BERTH -- DEMURRAGE -- INDUSTRY -- Charterer Award
The Charterer ordered the Vessel to arrive at loadport ready in all respects and duly cleaned to load a cargo of naphtha. Upon berthing, the inspector rejected the Vessel’s tanks and ordered them to be fresh water rinsed. Afterwards, the Owner filed for demurrage claiming that fresh water rinsing was neither required nor industry standard.
SHELLVOY 5 -- ARBITRATION -- CHARTER PARTY -- LAYCAN -- LAYTIME -- EARLY LOADING CLAUSE -- Owner Award
This arbitration settles a dispute pertaining to the Shellvoy 5 charter party clause that defines the savings earned by the Charterers if loading ends before laycan begins. The Charterers interpret the clause as crediting their savings from when laytime begins to the beginning of laycan, while the Owners argue that the savings period begins only after the end of the early laytime.
ASBATANKVOY -- LOADPORT -- BERTH -- DEMURRAGE -- GANGWAY -- Partial Owner Award
The Vessel arrived at loadport and tendered NOR, but was forced to wait for the berth to be free. The Owners filed demurrage for this lost time, however, the Charterers wanted to offset this claim with the delays resulting from Vessel unreadiness when berth became free (lack of proper gangway rigging).
The recent decision by the Court of Appeal (Civil Division) UK to overturn the High Court’s prior ruling in the case of Portolana Compania Naviera v. Vitol SA – “The Afrapearl” is sure to have a profound affect on how the maritime industry views a one-half demurrage provision such as the “breakdown of machinery or equipment in or about the plant of the charterer, supplier, shipper or consignee of the cargo…” as per Asbatankvoy’s Clause 8. In short, per the Court of Appeal’s ruling, Owners will need to further amend Asbatankvoy’s Clause 8 and other like clauses as contained in similar charter parties if they wish to protect themselves from delays resulting from ill-maintained terminals or terminal breakdowns due to the fault of the charterer. As we shall see, the wording provided in BPVOY 4’s exceptions clause may be one way Owners can protect themselves from ill-maintained terminals.
ASBATANKVOY -- CARGO -- LOADPORT -- SHIP-TO-SHIP -- COASTER -- DEMURRAGE -- ARBITRATION -- DOCK -- Owner Award
While loading other charterers’ cargo at the loadport, the Vessel tendered NOR for the Charterer’s ship-to-ship transfer. The Charterer’s coaster, however, waited until all other Vessel loading ceased before coming alongside the Vessel, causing an additional day of laytime. But at arbitration, the Charterer argued that the Vessel’s NOR was invalid because He/She claims that STS transfer could not begin while dock loading.
EXXONVOY 90 -- ACT OF GOD -- DISPORT -- DRAFT -- CHARTER PARTY -- DEMURRAGE -- DEMURRAGE RATE -- Charterer Award
Because of high winds pushing water out of the Houston Channel, the Vessel was unable to arrive at disport with its ordered draft. The Owners demanded that this extensive delay be paid in full by the Charterers, however, the Charterers cite the contract which stipulates that any delay due to adverse weather is paid at half the Demurrage Rate.
ASBATANKVOY -- DISPORT -- LAYTIME TERMINAL -- DISCHARGE RATE -- DEMURRAGE -- Owner Award
In this case, the Vessel arrived at disport with 6H 48M of laytime left. But in addition to the little remaining laytime, the terminal’s restrictive discharge rate further increased the eventual demurrage claim.
