2025 Maritime Digest of Arbitration Awards and Court Rulings

Flota Petrolera Ecuatoriana (FLOPEC) v. BP North America (The “Tiber”) – SMA No. 3778, 2 Apr 2003

ASBATANKVOY -- ARBITRATION -- FREIGHT DIFFERENTIAL -- SUB-CHARTER -- Owner Award Owner began arbitration to recover an unpaid freight differential on a back-to-back charter agreement. The Charterer needed an Ecuadorian flag Vessel in order to discharge in the contracted Ecuadorian port and could only get around this by sub-chartering the Vessel to itself through this contract’s Owner. However, Charterer argues that Flopec was under no risk in the transaction and had no right to claim a freight differential.
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Boss, Ltd. v. Trifinery Petroleum Services (The “Genmar Boss”) – SMA No. 3781, 16 Apr 2003

ASBATANKVOY -- ARBITRATION -- DEMURRAGE -- LAYCAN -- VOYAGE -- ETD -- PORT -- ACT OF GOD -- CHARTER PARTY -- Owner Award The focal points of this arbitration are the outstanding demurrage bill and the costs to the Owner to collect demurrage. The Charterers blame the missed laycan on a previous voyage that had a delayed ETD from lack of port space and adverse weather. The Owners, however, argue that the Charterer did not cancel the contract, and therefore, the laycan remains in full effect.
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George E. Warren Corp. v. Bona Shipholding Ltd. (The “Bona Fulmar”) – SMA No. 3787, 15 May 2003

ASBATANKVOY -- COGSA -- VOYAGE -- CARGO -- COLLISION -- GENERAL AVERAGE CONTRIBUTION -- Charterer Award During voyage, the Vessel collided with another tanker, causing cargo loss and damages. The Charterer claimed compensation for said losses while Owner counterclaims for unpaid general average contributions under COGSA.
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Cape Tankers, Inc. v. Sea Oil Shipping, Ltd. – SMA No. 3767, 20 Jan 2003

EXXONVOY 90 -- CONSOLIDATION -- INVOICE -- VOYAGE ARBITRATION -- Owner Award This case is a consolidation of four different outstanding Charterer invoices. After each voyage completion, the Owner would submit the required information in a timely manner, but the Charterer would not respond.
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Tradewind Tankers CA v. Bristar Overseas (The “Bright Gulf”) – SMA No. 3757, 8 Oct 2002

SHELLTIME 4 -- VOYAGE -- ARBITRATION -- TIME CHARTER -- DECK HEATER -- Partial Charterer Award In this time-charter contract, the Charterer commissioned the Owner’s Vessel because of its deck heater capability, which was necessary for the contracted cargo. However, the Vessel needed to undergo deck heater repairs and subsequently forced the Charterer to use a different vessel. Afterwards, the Charterer began arbitration to recover damages from the Vessel’s untendered voyage and contract breaches.
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Scandinavian Liquid Carriers, Ltd. v. Lelco Petroleum USA, Inc. (The “Spirit”) – SMA No. 3761, 8 Nov 2002

ASBATANKVOY -- VOYAGE -- LOADPORT -- LAYCAN -- LAYTIME -- DEMURRAGE -- PORT AGENT -- Owner Award After an initial vessel substitution, the new Vessel began voyage and tendered NOR at loadport during the designated laycan. Nevertheless, low pumping speeds extended laytime past laycan and gave reason for an Owner demurrage claim. The Charterers, however, refused to pay, arguing that flawed port agent information and Vessel confusion led to a misunderstanding of the Vessel’s acceptable loading speeds.
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Wonsild Liquid Carriers Ltd. v. Naviera del Pacifico SA de CV (The “Dzintari”) – SMA No. 3771, 24 Feb 2003

SHELLTIME 4 -- ARBITRATION -- OFF-HIRE -- VETTING -- VOYAGE -- TIME CHARTER -- Owner Award This arbitration dispute arose from a potentially invalid off-hire declaration by the Charterer. In this case, the Charterer declared the Vessel off-hire until proper CDI vetting approval; however, the Charterer also ordered the Vessel to undergo a voyage during this off-hire. So when the Owners were billed for this period, they argued that the Vessel was technically in use by the Charterer.
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Bore Line Pte Ltd. v. Seaboard Marine, Inc. (The “Seaboard Horizon”) – SMA No. 3740, 15 Jun 2002

NYPE -- TIME CHARTER -- OFF-HIRE -- SEAWORTHINESS -- BUNKER -- ARBITRATION -- Partial Owner Award Throughout the life of the time charter contract, the Vessel had experienced extensive engine problems which rendered the Vessel off-hire on several occasions. The Charterers billed the Owners for the off-hire time and claimed that the delays were because of Vessel unseaworthiness. The Owners, on the other hand, blame the Charterer-supplied, low-grade bunkers for the engine trouble.
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Transportes Maritimos Centroamericanos v. Paper Sea AS (The “Forest Link”) – SMA No. 3745, 25 Jul 2002

NYPE -- CARGO -- CONTAMINATION -- SUBCHARTER -- TIME CHARTER -- UNSEAWORTHY -- NONPERFORMANCE -- OFF-HIRE -- Partial Owner Award After repeated incidents of Vessel-caused cargo contamination, few valued shippers would subcharter the Vessel. The Charterers then began arbitration in order to terminate the long-term time charter with the Vessel on the grounds that the Vessel was consistently unseaworthy. The Owners argued that the only response to nonperformance is the off-hire clause, not cancellation.
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Cape Tankers Inc. v. Chemoil Corp. – SMA No. 3746, 5 Aug 2002

ASBATANKVOY -- ARBITRATION -- CONTRACT OF AFFREIGHTMENT -- VOYAGE -- FREIGHT -- VESSEL -- Partial Charterer Award This arbitration from a Contract of Affreightment encompasses four separate disputes pertinent to COA legislation. Owner failure to inform Charterers of ETA changes, proper withdrawal of a notice of repudiation, the number of voyages contracted in a COA, and freight difference for substitute vessels are all discussed in the proceedings.
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