Jan, 2018. Maritime Digest of Arbitration Awards and Court Rulings

BBC Chartering Carriers GmbH Co. KG and The Shopping Metal USA, Inc., Charterers, M/V BBC MARYLAND, CP 8/6/2017 – SMA 4351

DEMURRAGE – AMENDED FINAL AWARD – NO OBJECTION TO CLAIM – NO RESPONSE FROM RESPONDENT Owner initiated arbitration proceedings against Charterer over an unpaid demurrage amount. Charterer issued no response or objection to the claim. BC Chartering Carriers GmbH Co. KG (hereinafter, “Owner”) claimed the demurrage balance from The Shopping Metal USA, Inc. (hereinafter, “Charterer”) after the Charterer failed to pay the outstanding balance within the time allocated by the charter party under the Gencon form. The demurrage amount in question totaled $13,265.62. Under the provisions of the charter party the dispute was to be conducted using the Shortened Arbitration...
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Keytrade Africa SA, as Claimant, and Asbita Sarl, as Respondent (Final Award) – SMA 4331

DEMURRAGE – LATE PAYMENT – SOLE ARBITRATOR – RESPONDENT FAILED TO RESPOND TO CLAIMS Keytrade Africa SA claimed for demurrage and interests on late payments against Asbita Sarl when they failed to submit payment before the date specified in their Settlement Agreement. eytrade Africa SA (hereinafter, “Keytrade”) entered into an Assignment Agreement with Keytrade AG wherein they took all rights and obligations from Keytrade AG to pursue a claim against Asbita Sarl (hereinafter, “Asbita”) for demurrage with respect to two voyages. The claims were the result of late demurrage payments and interests accrued during the discharging operations of the two...
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London Arbitration 19/18

DEMURRAGE – TIME BAR – CONTRACT OF AFFREIGHTMENT – WHETHER BROKER IS AGENT OF OWNER OR CHARTERER – INTERMEDIATE BROKER – CONSEQUENTIAL DELAYS When Owner claimed demurrage with respect to eight voyages Charterer contended that seven of those were time-barred. The claim documents were sent to broker “D” who did not send them to the Charterer until after the time bar period. Owner contends that D was an agent of the Charterer, while Charterer contends D was an agent of the Owner.  Further, when engine troubles at the load port led to consequential delays at the disport which Charterer claimed...
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London Arbitration 5/19

PARTIAL FINAL AWARD – LA 4/19 – HIRE DEDUCTIONS – WHETHER CHARTERER HAD REASONABLE GROUNDS TO DEDUCT FROM HIRE Owner claimed for hire amount deducted by Charterer stating the Charterer offered no reasonable grounds to make that deduction. his arbitration follows the award made in London Arbitration 4/19. The result of that arbitration was that the Owner would not be held liable to the cargo claim involving the Charterer, and therefore the Charterer’s deduction from hire would be dismissed. Owner pursued the issue further and claimed that the Charterer could not show reasonable grounds for the deduction from hire and...
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London Arbitration 4/19

UNPAID HIRE – DEDUCTIONS TO HIRE – CHARTERER SETTLING WITH CARGO RECEIVER – CARGO CLAIM – INTER-CLUB NEW YORK PRODUCE EXCHANGE AGREEMENT – UNSEAWORTHINESS Owner claimed for unpaid hire from Charterer after Charterer had deducted it on the basis that the Charterer had to settle with the cargo receiver due to a delay in the vessel’s arrival at the discharge port caused by the vessel being unseaworthy. he subject of this arbitration is an unpaid hire sum amounting to $295,000.00 claimed by the Owner against the Charterer. Counterclaims were issued by the Charterer for the amount of $2,985.88 on the...
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Gunvor SA v CruGas Yemen Ltd and Another – QBD (Comm Ct) (Phillips J) [2018] EWHC 2061 (Comm) – 23 July 2018

DEMURRAGE – SALES CONTRACT – TERM CONTRACT – TIME BAR – WHETHER DEMURRAGE IS INDEMNITY OR FREE-STANDING – CONTRACT OF AFFREIGHTMENT – COA Seller claimed for demurrage and other sums against Buyer, which the Seller named incorrectly in the claim. Buyer contended that the demurrage claim was time-barred under the contract of affreightment provision to which the Buyer was not a party, the demurrage rate was not in line with market rate, and the Seller’s entitlement to demurrage was an indemnity under the contract of affreightment. unvor SA (hereinafter, “Seller”) entered into a written term contract for the sale of...
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Lukoil Pan Americas, LLC, Claimant, and Methanol Holdings Trinidad Ltd., Respondent – SMA 4340

REPUDIATORY BREACH – WAIT FOR ORDERS CLAUSE – WFO – DAMAGES DUE TO EARLY TENDERING OF NOR – NOTICE OF READINESS – SUPPLY CONTRACT – WARRANTED SPEED Charterer suffered losses resulting from an early tendered notice of readiness. Owner contended that the Charterer was not in its rights to delay the voyage as it had entered into a supply contract and endorsed the bills of lading with another party, and had such transferred the rights and terms of the charter. ukoil Pan Americas, LLC (hereinafter, “Charterer”) filed claims against Methanol Holdings Trinidad Limited disponent owner (hereinafter, “Owner”) of the MT...
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London Arbitration 26/17

CHARTER PARTY – REPUDIATORY BREACH – FAILURE TO PROVIDE CARGO – DEMURRAGE – DAMAGES FOR LOSS OF PROFIT Owner claimed demurrage and damages from loss of profit after Charterer failed to provide cargo at loading port resulting in a repudiatory breach of the charter party. nder a fixture note using the Gencon 1994 form the Vessel was chartered to lift a shipment of coal ex Newcastle, Australia and discharging Kemen, China. Upon arrival at the loading port in Newcastle the Charterer failed to provide the cargo, and subsequently the Vessel accrued demurrage. Charterer then informed Owner that they would no...
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London Arbitration 20/18

DEMURRAGE – SUBSTITUTE CHARTER PARTY – UNPAID FREIGHT – WHETHER OWNER CAN DELAY DISCHARGE OPERATIONS – POSSESSORY LIEN When Owner entered a substitute charter party upon the Original Charterer’s failure to pay freight the Substitute Charterer signed the fixture recap of the original charter. The question is whether the terms of the original charter pertain to the demurrage amount accrued by Substitute Charterer. he matter of this dispute arose following claims over the demurrage balance from a voyage under a substitute charter party. The Disponent Owner (hereinafter, “Owner”) entered into a charter party on the Gencon 4 form with the...
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London Arbitration 16/18

DEMURRAGE – PORT CHARTER – NOTICE OF READINESS – WIPON PROVISION – GEOGRAPHICAL READINESS Owner claimed demurrage arising from delay where vessel was unable to proceed directly to berthing. The vessel tendered four notices of readiness, the third of which was argued as triggering laytime. he dispute of this arbitration concerns establishing the party responsible for the delay that occurred when the vessel attempted to berth at the discharge port of Saleef, Yemen. The vessel was chartered on an amended Gencon 94 form as a port charter. Owner claims for demurrage arising from the delay amounting to $86,088.02 plus interest...
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