Tagged: COA

English Maritime Cases

Palmali Shipping SA v. Litasco SA– QBD (Comm Ct), 1 October 2020

CONTRACT OF AFFREIGHTMENT – FAILURE TO HONOR MINIMUM QUANTITY OF CARGO CONTRACT – LOSS OF PROFITS – TRANSFERRED LOSS PRINCIPLE
Palmali sought US$1.9 billion in damages from Litasco under a long-term contract of affreightment (COA). Palmali contended the COA gave it exclusive rights to carry oil products for Litasco between multiple ports in the Caspian Sea, Black Sea and the Mediterranean. Further, Palmali asserted the COA guaranteed Litasco would ship a minimum quantity of 400,000 MT (the Minimum Quantity Obligation), with a total monthly volume of 700,000 MT/month.

English Maritime Cases

Laysun Service Co Ltd v Del Monte International GmbH [2022] EWHC 699 (Comm) (Calver J) – 28 March 2022

CHARTERPARTY – CONTRACT OF AFFREIGHTMENT – COA – FORCE MAJEURE – APPEAL AGAINST ARBITRATION AWARD – ARBITRATION ACT 1996, SECTION 69
In December 2017, Del Monte entered into a contract of affreightment (COA) with Laysun to transport refrigerated bananas from the Philippines to Iran. The agreement was for 36 voyages from January 1, 2018 – December 31, 2018. After 17 shipments, Del Monte stopped providing cargos. Layson sought arbitration for Del Monte’s failure to supply the remaining shipment. Del Monte claimed force majeure due to US Sanctions against Iran and the resulting import restrictions. Laysun appealed the arbitration citing error of law under section 69 of the Arbitration Act 1996.