Panamex International Shipping Company Ltd. v AAT Global Ltd. (The “CABO FUJI”) – SMA No. 4473 – 4 March 2024
This arbitration dispute centered on a charter party agreement between Panamax International Shipping Company Ltd. and AAT Global Ltd. Panamax sought to recover $331,567.70 for demurrage charges, along with pre-award interest, attorney’s fees, and costs. The charter party between the two companies was for a single voyage for transporting Carbon Black Feedstock (CBFS) from Mississippi River ports to East Coast India, with laytime and demurrage terms specified.
Despite several requests for payment after Panamax International submitted a demurrage claim in January 2023, AAT Global failed to respond, prompting Panamax International to initiate arbitration in October 2023. The arbitration process followed the procedures stipulated in the agreed upon charterparty, including appointing arbitrators and notifying AAT Global. However, AAT Global failed to appoint its arbitrator within the specified time frame, leading Panamax International to appoint a second arbitrator. Despite multiple notifications and opportunities to participate, AAT Global remained unresponsive.
The voyage itself included loading CBFS from two ports along the Mississippi River and discharging it via ship-to-ship transfer operations in Dharma and at the Haldia port in India. The Vessel encountered delays due to awaiting berth availability before loading at Port Allen and awaiting the second transshipment vessel at Dharma.
Award
The arbitration panel, after a thorough review of submissions and contract terms, found Panama International’s demurrage claim to be supported by appropriate documentation and calculations. The demurrage was primarily incurred due to the delays that took place at Port Allen and Dharma, which combined exceeded the allowed laytime. Consequently, the Panel unanimously ruled in favor of Panamax International, awarding them $331,567.70 in demurrage charges as well as attorney’s fees, arbitrator’s fees, and pre-award interest.