VEGOILVOY -- SUBSTANTIAL FAILURE OF EPOXY COATING OF CARGO TANKS -- TANK LINING -- VESSEL SUITABILITY -- WHETHER OWNERS IN BREACH OF CHARTER -- Charterer Award
The Charterer's inspector rejected the Vessel's tanks due to severe corrosion and rust, and declared the Vessel unsuitable. Charterer held the Owner in breach of the charter not only for the condition of the tanks, but also if the Vessel's tanks were actually epoxy coated as presented in the charter party. Charterer won the initial dispute in the Court of Singapore. Owners appealed, and this award details how the Court approached the issue.