Author: Haugen Consulting

Current / English Maritime Cases / Featured

London Arbitration 13/23 

TIME CHARTER – DEATH OF MASTER - COVID-19 – QUARANTINE REQUIREMENTS – PANAMA CANAL - OFF-HIRE – CANAL TRANSIT AUTHORITIES - DELAY DUE TO COVID TESTING – HEALTH AUTHORITY HOLD – DETENTION – AMENDED NYPE FORM Shortly before its arrival at the Panama Canal in May 2021, complications arose on a time charter due to the unfortunate death of the vessel's master. The vessel was placed on hold until PCR test results were available, delaying transit through the Panama Canal and prompting claims by Charterers of off-hire and detention.
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Current / English Maritime Cases

London Arbitration 14/23 

TIME CHARTER – ANCHORAGE IN MISSISSIPPI – HURRICANE IDA – GROUNDING – 360-DEGREE SWING ANCHOR CHAIN ENTANGLEMENT – TUG ASSISTANCE – DELAYS – OFF-HIRE – UNSAFE ANCHORAGES –INDEMNIFICATION OF OWNERS - CLAUSE 8 OF NYPE FORM – BREACH OF WARRANTY - VESSEL ALWAYS AFLOAT – ALLEGED NEGLIGENCE OF MASTER - HULL FOULING – FRESH OR BRACKISH ANCHORAGE WATER – LATE EVIDENCE. A vessel was chartered for an 80-90 day one-way trip from the US Gulf to China under an amended NYPE 1946 form with additional clauses. Berthing in New Orleans/Mississippi River was delayed by Hurricane Ida, leading to a 34-day wait at Alliance Anchorage. After loading bulk corn, the vessel sailed on September 27, 2021, and was redelivered in China on December 7, 2021. Arbitration was sought to resolve disputes over final hire accounts, grounding of the vessel, fouling of the hull, and alleged negligence of the master.
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Current / English Maritime Cases

London Arbitration 15/23

SPEED AND CONSUMPTION CLAIM – WEATHER ROUTING COMPANIES’ METHODOLOGIES – VERACITY OF DECK LOG DATA – DEADFREIGHT – SURVEY COSTS AND BANK CHARGES – HONG KONG SEAT A single-deck geared bulk carrier was chartered to transport nickel ore from the Philippines to China. Owners alleged wrongful deductions by the charterers for underperformance, deadfreight, survey costs, and bank charges and sought US$54,675.21. The arbitration centered on speed and consumption clauses and weather routing methodologies.
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Current / English Maritime Cases

London Arbitration 16/23

BUNKERS ON REDELIVERY – MEANING OF “PRICE AT BOTH ENDS” - EXCEEDING 5 PERCENT ALLOWANCE – OFF-HIRE DUE TO CREW CHANGE – WRONGFUL DEDUCTION REPAID LATE – INTEREST Owners of a vessel chartered on an amended NYPE 1946 form sought compensation for market rate differences on bunkers at redelivery. The arbitration also dealt with crew changes, off-hire, and time spent on sub-chartering.
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Current / English Maritime Cases / Singapore Maritime Cases

Hyphen Trading Ltd v BLPL Singapore Pte Ltd – Singapore High Court, 25 Oct 2023

ADMIRALTY – SALE OF CARGO – DISPUTE OVER CARGO OWNERSHIP - VALIDITY OF BILLS OF LADING – WHETHER CARGO COULD BE SOLD WITH OWNERSHIP DISPUTE HTL, a UK commodity trading company, claimed ownership of nickel briquettes and held bills of lading for their shipment from Malaysia to India. A dispute arose with BLPL, the alleged contractual carrier, over ownership of the cargo. HTL sought to sell the cargo in Singapore and petitioned the Court to do so in advance of the ownership ruling.
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Current / English Maritime Cases

Rhine Shipping DMCC v Vitol S.A. (The “Dijilah”) – EWHC (Comm Ct), 26 May 2023

DEMURRAGE - BPVOY4 - CLAUSE 13 INDEMNITY - VESSEL FREE OF LEGAL ISSUES – CARGO ON VESSEL ARRESTED - DELAY TO LOAD AT SECOND LOADPORT - INCREASE IN PURCHASING COSTS DUE TO DELAY - INDEMNITY AND WARRANTY CLAUSES - ASSUMPTION OF RESPONSIBILITY BY OWNERS - CAN CHARTERERS’ “GAINS” FROM INTERNAL HEDGING ARRANGEMENTS BE USED TO OFFSET OWNERS’ BREACH OF CHARTER CLAIM - REMOTENESS OF LOSS RULES FOR BREACH OF CONTRACT Disponent Owners chartered the tanker "Dijilah" from West Africa to China, then faced legal issues over sanction compliance by the commercial operator/owner. Property seizure by financiers caused delays, leading Charterers to pay an extra USD 3.7 million for cargo, but they gained USD 2.9 million internally. Disputes ensued as Owners claimed demurrage charges, countered by Charterers citing losses from the delay.
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English Maritime Cases

London Arbitration 5/23

BREACH OF CHARTERPARTY – DISCHARGING CARGO WITH A LIEN – VIOLATION OF CHARTERER’S ORDERS FOR DISCHARGING CARGO
In London Arbitration 4/23, a dispute arose between charterers and owners regarding cargo discharge instructions leading to this counterclaim. The charterers asserted that they instructed the owners not to unload cargo, for they were exercising a lien on the cargo to recover $3,705,033 owed by sub-charterers. Owners proceeded to unload the cargo, which charterers claimed invalidated the lien. Charterers claimed a breach of the charter and sought damages equal to the lien amount.

English Maritime Cases

Mitsui & Co (USA) Inc v. Asia-Potash International Investment (Guangzhou) Co Ltd, KBD (Comm. Ct),  15 May 2023

BREACH OF CONTRACT – NOT RE-BERTHING VESSEL TO LOAD CARGO – INDEMNITY FOR LOSSES INCURRED EARLIER – CHAIN OF CONTRACTS – REMOTENESS – ERROR OF LAW – ARBITRATION ACT 1996, SECTION 69
In May 2012, Mitsui agreed to sell 60,000 metric tons of Brazilian soybeans to DGO. The cargo was to be delivered to the Santos port by July 31, 2012, with payment through a letter of credit. While loading, the vessel broke its moorings, caused damage to the port equipment, and was detained with the remaining cargo onboard. DGO claimed contract termination, which Mitsui initially contested but later accepted in January 2013. A complex chain of sales and purchases was involved, leading to arbitration. The FOSFA Board of Appeal found DGO breached the contract by not re-berthing a vessel, awarding damages of US$7,007,430 to Mitsui. However, Mitsui’s claims for indemnity and losses suffered in the sales chain were rejected due to perceived remoteness. Mitsui appealed, alleging errors in the law regarding remoteness and citing Clause 29 of the Arbitration Act 1996.

English Maritime Cases

Smart Gain Shipping Co Ltd v. Langlois Enterprises Ltd (The “Globe Danae”) – KBD (Comm Ct) , 5 July 2023

APPEAL – UNDERWATER CLEANING “ALWAYS AT CHARTERERS’ TIME AND EXPENSE” – ON-HIRE RATES FOR CLEANING AFTER EXPIRY OF CHARTERPARTY – HULL FOULING – NYPE FORM – SECTION 69 OF THE ARBITRATION ACT 1996
Langlois (Owners) chartered the vessel, MV Globe Danae, to Smart Gain (Charterers) for a trip from India to Brazil carrying metallurgical coke. The dispute arose from clause (86) in the charterparty regarding hull fouling. Langlois claimed compensation for time spent on cleaning, based on clause 86, while Smart Gain argued cleaning obligations ceased upon redelivery. This was an appeal of a partial arbitration award from October 2022.

U.S. Maritime Cases

Shell Trading U.S. Company v. Vinmar International Ltd. (M/T “SOLAR NESRIN”) – SMA No. 4461, 26 June 2023

UNPAID DEMURRAGE – VINMAR TERMS – UNPAID INTEREST, COSTS, AND FEES – PARTIAL PAYMENTS
On January 28, 2023, SHELL issued a demurrage invoice to VINMAR in the amount of $ 77,079.84, as per the laytime calculations with a due date of 1 March 2021. VINMAR did not dispute the demurrage charges but argued the invoice should be reduced by balances allegedly owed to VINMAR by a different SHELL entity from an unrelated transaction. SHELL initiated arbitration for recovery, subsequently receiving partial payment by VINMAR of the disputed amount. SHELL continued with arbitration proceedings to reclaim the remaining unpaid demurrage, associated costs, fees, and interest.