Category: English Maritime Cases

Dainford Navigation Inc v PDVSA Petroleo SA (The “Moscow Stars”) – QBD (Comm Ct), 2 August 2017

TIME CHARTER - FAILURE TO PAY HIRE - ORDER FOR SALE OF CARGO When the vessel was sat by charterer for an extensive period of time with late or non-payment of hire, the Court was tasked with determining whether they had the power to implement an order for the sale of charterer’s cargo and whether they should.
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London Arbitration 20/17

TIME CHARTER - NYPE - DURATION - OPTION TO EXTEND Basis verbiage in a pro forma recap, charterer argued for a 15 days extension of the time charter.  Owner disagreed that an extension was due, pointing to the ultimate recap which did not reference the extension.
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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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London Arbitration 8/17

NYPE - INORDINATE AND INEXCUSABLE DELAY AFTER COMMENCEMENT OF ARBITRATION - ARBITRATION ACT OF 1996 - APPLICATION FOR DISMISSAL DUE TO WANT OF PROSECUTION - LIMITATION PERIOD - APPLICATION TO APPEAL TO HIGH COURT Damage claims arose after the collapse of a crane on board a vessel. Arbitration commenced two years later however no submissions were made until nearly 12 years after the incident. Charterer applied to have the claim dismissed for want of prosecution by owner. The panel agreed with charterer and owner applied to the High Court for a chance to appeal.
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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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