Category: Current

London Arbitration 15/19

SPEED AND PERFORMANCE – WHETHER LOST TIME AND EXPENSES TO BE FOR CHARTERER – HULL CLEANING – PROLONGED PORT STAY When the Vessel required hull cleaning after a prolonged port stay Charterer contended that they were not liable for time and expenses as the inspection and cleaning occurred after redelivery.  During a voyage chartered on an amended NYPE 1993 form the Vessel encountered a prolonged port stay, which necessitated hull cleaning. Charterer claimed the time and expenses of the cleaning would not be for their account due to the structuring of the clause providing for extended port stays. The relevant...
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Koyo Kaiun Co. Ltd., as Claimant-Owner of the MT Clarice, MT Amelia, MT Xena and Liquistream Americas Inc. as Respondent – SMA 4347

DEMURRAGE – TIME BAR – DOCUMENTARY REQUIREMENTS – STATEMENT OF FACTS – PORT LOGS – PARTIAL FINAL AWARD  Owner claimed demurrage against Charterer, who contended that the claims were time-barred per clauses added by Charterer to the charter fixtures.  This partial final award covered three separate demurrage claims that were consolidated into a single proceeding. Koyo Kaiun Co. Ltd. (hereinafter, “Owner”) claimed against Liquistream Americas Inc. (hereinafter, “Charterer”), who contended that the claims were time-barred per the agreed contract. The main dispute of this partial final award was whether the claims are time-barred, and not the specifics of the amount...
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Norstar Shipping and Trading Ltd., Disponent Owner, and Ravago LM Pte Ltd., Charterer, Under a Voyage Charter Party, dated, October 7, 2016, of the M/T UACC DOHA – SMA 4350

DEADFREIGHT – VOYAGE CHARTER – FORCE MAJEURE – WHETHER CHARTERER LIABLE FOR DEADFREIGHT AFTER FORCE MAJEURE EVENT Owner claimed deadfreight after Charterer was unable to load a complete quantity of cargo at the loading port due to a fire. Charterer contended that the fire at the loading port constituted a force majeure event, and as such they were not liable for deadfreight incurred as a result.  Norstar Shipping and Trading Ltd. (hereinafter, “Owner”) claimed for deadfreight amounting to $102,640.28 against Ravago LM Pte Ltd. (hereinafter, “Charterer”). The Owner entered into a space voyage charter on the Asbatankvoy form using the...
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Odfjell Tankers as Owner and Ravago LM Pte Ltd. as Charterer of the MT BOW TRAJECTORY – SMA 4355

DEMURRAGE – OFF-SPECIFICATION OF CARGO – INERTING SYSTEMS – DELAY TO DISCHARGE CARGO  Upon arrival at the first discharge port the cargo was determined to be off-specification. Due to this the Vessel accrued demurrage which the Owner claimed against the Charterer. The Charterer contended that the Owner was liable for the deterioration of the cargo and thus the subsequent delay and demurrage.  Odfjell Tankers (hereinafter, “Owner”) entered into a charter party under the Asbatankvoy form with Ravago LM Pte Ltd (hereinafter, “Charterer”) for the transport of 10,000 mt Mono Ethylene Glycol (MEG) on the MT BOW TRAJECTORY (hereinafter, “Vessel”) from...
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MTM Trading LLC, as Disponent Owner of the MTM SANTOS and Tricon Energy Ltd., as Charterer – SMA 4356

DEMURRAGE – ICE CONDITIONS – SAFE BERTH – ICE CONVOY  Owner claimed demurrage from Charterer arising from a delay to proceed to berth due to ice conditions. The delay resulted from the Owner invoking an ice clause in the charter party stating that the Vessel would never be required to follow ice breakers. Charterer contended that the Owner did not exercise this clause reasonably.  This arbitration involved MTM Trading LLC (hereinafter, “Owner”) claiming demurrage amounting to $403,943.87 against Tricon Energy Ltd. (hereinafter, “Charterer”). Owner chartered the vessel MTM SANTOS (hereinafter, “Vessel”) under the Asbatankvoy form to ship 15,000 mt of...
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Macsteel International USA Corp., as voyage charterer, and Inter Merchant Marine Co Ltd., as head owner of the M/V INTER PRIDE – SMA 4360

DEFAULT ON HIRE PAYMENT – FORCE MAJEURE – WRONGFUL ARREST AND ATTACHMENT – OBLIGATION TO PROCEED WITH REASONABLE DISPATCH – DOCTRINE OF FINANCIAL UNSEAWORTHINESS Upon the Charterer’s default on hire payments the Owner terminated the time charter party, which resulted in a delay at the discharge port and subsequent attachment and arrest of the Vessel. The Sub-Charterer claimed damages arising from the delay against the Owner, who counterclaimed for wrongful arrest and attachment of the Vessel.  Under a time charter on the NYPE form Inter Merchant Marine Co Ltd (hereinafter, “Inter Merchant”) chartered the M/V INTER PRIDE (hereinafter, “Vessel”) to...
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J. Lauritzen Bulkers A/S, as Disponent Owner/Claimant, – and – Interoceanic Corp., as Charterer/Respondent – SMA 4368

FORCE MAJEURE – HURRICANE – WHETHER FORCE MAJEURE WAS PREMATURE – LAYCAN – REPUDIATORY BREACH  Owner claimed Charterer wrongfully repudiated the charter after Charterer declared force majeure prior to the laycan.  J. Lauritzen Bulkers A/S (hereinafter, “Owner”) claimed against Interoceanic Corp. (hereinafter, “Charterer”) for repudiatory breach in contract following Charterer’s declaration of force majeure. The parties entered into a charter on an amended FOSFO form for carriage of a cargo of ammonium sulphate on the TBC PRESTIGE (hereinafter, “Vessel”) from the load port of Pasadena, Texas to ports in Brazil. The loading facility in Pasadena, PCI Nitrogen, was purchased by...
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Aurora Tankers International Ltd. as Owner of M/T MARITIME LIRA, Claimant and Tricon Energy Ltd. as Charterer and Respondent – SMA 4369

DEMURRAGE – OFF-SPECIFICATION OF CARGO – WHETHER CONTAMINATION ATTRIBUTABLE TO SHORE OPERATIONS OR VESSEL – READINESS TO LOAD When the cargo was found to be off-specification after loading the “first foot” Charterer requested the second foot be loaded to allow for the cargo to blend back to specification. Owner contended the contamination arose from the shore tanks rather than the Vessel. Delays incurred as a result of the testing and surveying process, which resulted in Owner’s claim for demurrage. Charterer countered that time was not to count during the delay as it was attributable to fault of Owner.  Aurora Tankers...
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Caribe Tankers, Ltd. as Disponent Owner of the CARIBE ROSA and Murex LLC, as Charterer – SMA 4370

DEMURRAGE – NO APPEARANCE – PAYMENT OF INTEREST AND ARBITRATION COSTS  Owner sought payment of outstanding demurrage amount from Charterer and initiated arbitration proceedings. Charterer failed to participate in the proceedings, but it did submit payment of the outstanding demurrage amount following Owner’s submissions. Owner claimed for interest, attorney’s fees, and arbitration costs against Charterer.  Caribe Tankers, Ltd (hereinafter, “Owner”) brought arbitration proceedings against Murex LLC (hereinafter, “Charterer”) over an unpaid demurrage amount totaling $31,119.08. The demurrage charges incurred under two charters, both fixed under Asbatankvoy, and two voyages of the CARIBE ROSA. Owner requested consolidation of the two demurrage...
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Alize 1954 and Another v Allianz Elementar Versicherungs AG and Others (The “CMA CGM Libra”) – QBD (Comm Ct) (Teare J) [2019] EWHC 481 (Admlty) – 8 March 2019

GENERAL AVERAGE – WHETHER VESSEL WAS UNSEAWORTHY – OBLIGATION TO EXERCISE DUE DILIGENCE – WHETHER PASSAGE PLAN WAS DEFECTIVE Cargo interests refused to contribute to general average after the Vessel was grounded. It claimed the grounding was the result of the Owner’s failure to exercise due diligence in providing a seaworthy vessel.  When the container vessel CMA CGM LIBRA (hereinafter, “Vessel”) was grounded whilst departing the port of Xiamen, China the cargo interests denied contribution to general average due to the cause of the grounding. The Owner stated that the grounding occurred as a result of an uncharted shoal. It...
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