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

BBC Chartering Carriers GMBH v Primavera Importacao E Expoertacao De Carais LTDA and LT Cargo Transportes E Armazens Gerais LTDA. (The “Nalinee Naree”) – SMA 4313, 18 April 2016

DETENTION - REPUDIATED CHARTER PARTY - DEADFREIGHT - HULL CLEANING - MITIGATED DAMAGES After awaiting several weeks for cargo, the charter party was repudiated and the owner fixed mitigating voyages. Owner claimed for detention, deadfreight, and hull cleaning expenses.
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Gard Shipping AS v Clearlake Shipping Pte Ltd – QBD (Comm Ct), 12 May 2017

CHARTERPARTY – EXTENSIVE DELAY AT DISPORT - ESCALATION FROM DEMURRAGE RATE TO DETENTION RATE – BUNKER COST - WAITING TIME – FLOATING STORAGE The vessel tendered its NOR upon arrival at the disport and after no further instructions were given by Charterer she waited 64 days before discharging. Owner claimed Charterer used the vessel as floating storage and applied a clause in the C/P enabling demurrage to be charged at an escalating rate. Charterer countered by stating the 64 days were to be charged as ordinary laytime and demurrage.
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London Arbitration 17/17

CLAIM FOR DETENTION - ASSESSMENT OF ACTUAL LOSS - WHETHER DEMURRAGE RATE USED FOR CALCULATION OF DAMAGES TO BE GROSS OR NET OF COMMISSION After sitting at the agreed upon discharge port for an extended period charterer directed the vessel to a disport not included in the fixture recap. Upon the ultimate completion of discharge owner presented charterer with a claim for detention which utilized the agreed demurrage rate. The panel would be tasked at both determining the validity of the claim and the appropriate rate to be used.  
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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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