Vol. 23, No. 2. Maritime Digest of Arbitration Awards and Court Rulings

London Arbitration 13/17

WEATHER DELAY - HOLIDAY, SHINC, & SATURDAY - AWAIT DOCUMENTS ONBOARD - ONCE ON DEMURRAGE, ALWAYS ON DEMURRAGE - DETENTION - BURDEN OF PROOF Charterer disputed owner’s demurrage calculations with weather reports. Owner disputed that the documents onboard allowance was due as the relevant clause referenced laytime and whilst awaiting documents the vessel was on demurrage. Charterer claimed both a holiday and a holiday on a Saturday should be deducted from time counting. Finally, charterer requested a documents onboard allowance whereas owner implied, “once on demurrage, always on demurrage.”
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London Arbitration 9/17

DEMURRAGE - DELAY DUE TO A LABOR STRIKE A labor strike at the disport interrupted the Vessel's discharge. After the voyage, the Charterer refuted the resulting demurrage basis the Gencon General Strike Clause.
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London Arbitration 15/17

NYPE – CRANE BREAKDOWN – OFF HIRE – LASHING MATERIALS – SHORE CRANE HIRE – BURDEN OF PROOF – PROVISION OF ORIGINAL INVOICES VERSUS PDF’s When one of the Vessel’s cranes couldn’t be used, charterer asserted the vessel was off hire and claimed for costs.  Owner countered that as no time was lost the vessel was on hire and in response to charterer’s claim for costs, owner requested original invoices rather than .pdf’s.  Owner also claimed for the cost of lashing material whilst charterer claimed for the cost of a shore crane hired due to vessel’s broken crane. long with...
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London Arbitration 11/17

TIME CHARTER - GULF OF ADEN TRANSIT, YEMEN DISCHARGE - PREMIUMS AND WAR RISKS - ARMED GUARDS - CREW BONUS - CHARTERER CLAIMED CULPABLE DELAY After discharging in Yemen, the shipowner claimed for additional premiums, armed guards, the armed guards’ meals, expenses related to a crew change, and crew bonuses. The charterer rejected these charges, claiming that the charges were due to a culpable delay on the owner's part.
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Interoceanic Corporation v Helm Dungemittel GMBH and Helm Fertilizer Corp. – SMA 4305, March 3, 2017

FOB SALE - VESSEL ARRIVING LATE - SECOND VESSEL NOMINATED - CONTRACT AMENDED FOR NEW LAYCAN - PRODUCER’S MARKETER CLAIMED DAMAGES FOR ALLEGED EFFORTS TO AVOID PLANT SHUTDOWN - BUYER CLAIMED FOR DEMURRAGE AND DAMAGES DUE TO MISSED OPPORTUNITY A contract was fixed for the sale of ammonium sulfate to be loaded in Pasadena, Texas. After the originally nominated vessel was to miss the laycan, a replacement vessel was nominated. The contract was then re-negotiated with a new window and cargo quantity. Later, the producer’s marketer claimed for damages incurred when several barges were loaded to avoid a plant shutdown. The buyer claimed for demurrage and damages due to a missed opportunity.
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Seatrade Group N.V. v Isabella Shipping Company Limited (The “Santa Catharina”) – SMA 4303, 21 February 2017

TIME CHARTER – VESSEL CRANE FAILURE – UNABLE TO USE 1 HOLD ON THE SHIP – CHARTERER WITHHELD A PROPORTIONATE SHARE OF HIRE – OWNER BELIEVED HIRE DUE IN FULL – CHARTERER GOING OUT OF BUSINESS – PARTIAL AWARD FOR SECURITY Although continuing to trade, due to a crane breakdown onboard a time chartered vessel cargo capacity was reduced for a month and a half for which the charterer withheld a pro rata share of hire. The owner countered that as no time was lost, hire is due in full. After the owner was informed that the charterer was going...
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Ellin E.N.E c/o Nereus Shipping v Castleton Commodities Shipping Co. Pte. Ltd. and Phillips 66 Company (The M/V “Romantic”) – SMA 4299, 11 Jan 2017

BPVOY4 - "ALL INCLUSIVE" FREIGHT COVERING ALL COSTS OF VOYAGE - RIVER BERTH REQUIRING STANDBY TUGS Afforded a range of ports within the fixture recap, Charterer directed the Vessel to a river berth wherein due to high current, standby tugs were required. Owner claimed the cost of the standby tugs from Charterer. Charterer pointed to freight being “ALL INCLUSIVE” and thus covering all costs of the voyage inclusive of standby tugs.
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Navalmar UK Ltd v Kale Maden Hammaddeler Sanayi ve Ticaret AS (The “Arundel Castle”) – QBD (Comm Ct) (Knowles J) [2017] EWHC 116 (Comm) – 31 January 2017

VESSEL ORDERED TO ANCHOR OUTSIDE “PORT LIMITS” BY PORT AUTHORITY - DEFINITION OF “PORT LIMITS” - WHETHER VESSEL CONSIDERED GEOGRAPHICALLY READY TO TENDER NOR WITHIN THE CONTEXT OF C/P - DEMURRAGE A vessel arrived off of the load port and was instructed by the port authority to anchor outside the port limits to await berth availability. The Court was tasked at determining whether the vessel was geographically ready for the purposes of tendering notice of readiness. The Court also looked at the definition of “port limits”.
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London Arbitration 1/17

DEMURRAGE - DETENTION - WHETHER VESSEL IN BREACH OF PUMP WARRANTY - WHETHER OWNER SHOULD BEAR EXTRA SHIFTING EXPENSES INCURRED WHEN THE VESSEL WAS ORDERED OFF THE DOCK DUE TO SLOW DISCHARGE - DELAY AWAITING DOCUMENTS AT DISPORT Due to a slow discharge rate, the vessel was forced off her berth by port authorities. And after hoses disconnected at the disport, the vessel was delayed in departing for over 4 hours whilst awaiting documents onboard. Charterer denied Owner’s subsequent claims for demurrage, additional shifting expenses, and detention leading to this arbitration.
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London Arbitration 7/17

INTERIM PORT CALL FOR CUSTOMS REQUIREMENT BEFORE AND AFTER DISCHARGE - DEVIATION - BUNKER COSTS - DEMURRAGE When the vessel was required to attend a port prior to and after the disport for customs reasons, owner charged the transit times from and to the interim port, the time in the interim port, and extra bunkers consumed. The charterer rejected owner’s claim under the auspices that the interim port calls were “beyond charterer’s control”.
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