Category: Featured

Highlighted articles from each TANKVOYager issue.

Macsteel International USA Corp. v. Inter Merchant Marine Co. Ltd. – SMA 4322, 14 Aug 2017

PARTIAL FINAL AWARD - ARREST AND ATTACHMENT OF VESSEL - MARITIME LIEN - DEFAULT IN HIRE - UNSEAWORTHY The vessel was denied entry into a prior port for other charterers’ accounts which subsequently delayed her arrival at charterer’s disport. The panel was tasked to determine the party at fault for the delay and whether demurrage and other damages for barges awaiting the vessel at charterer’s disport for transshipment purposes were to be considered as consequential.
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London Arbitration 23/17

DEMURRAGE - OIL SPILL - FORCE MAJEURE - PROCEED THERETO - REACHABLE ON ARRIVAL - ARREST OR RESTRAINT OF PRINCES - BPVOY3 Before the vessel’s arrival at port, a vessel at the vessel’s intended berth had an oil spill which delayed the vessel once she arrived at the port.  Charterer argued to split the delay 50/50 wherein owner stated that BPVOY3’s “proceed thereto” was to be read as “reachable on arrival”, the spill was not an exception, and the prior vessel’s arrest was not an “arrest or restraint of princes, rulers or people”.
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MT “Cape Bonny” Tankschiffahrts GmbH & Co KG v Ping An Property and Casualty Insurance Co of China Ltd – QBD (Comm Ct) (Teare J) [2017] EWHC 3036, 4 December 2017

ENGINE BREAKDOWN - TYPHOON - SEAWORTHINESS - GENERAL AVERAGE - REASONABLE EXPENDITURES After suffering an engine breakdown, the shipowner employed a tug to avoid a typhoon and to bring the vessel to port.   The owner then brought claim against the insurance company for general average contribution. The defendant argued that the vessel was unseaworthy at the beginning of the voyage and that the casualty was caused by actionable fault of the Owner and thus no contribution was due. Further, the defendant argued that owner’s expenditure as claimed under general average was unreasonable.
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Fulton Shipping Inc of Panama v Globalia business Travel SAU (The “New Flamenco”) – Supreme Court

TIME CHARTER  – ANTICIPATORY BREACH – DAMAGES – VESSEL REDELIVERED EARLY – VALUE OF VESSEL SOLD AT REPUDIATION GREATER THAN VALUE OF VESSEL AT CONTRACTUAL DATE OF REDELIVERY Under a time charter, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim. This is an appeal of...
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London Arbitration 18/17

STEMMOR 83 - VOYAGE CHARTER - ACCORD AND SATISFACTION - DETENTION - CUSTOMARY ANCHORAGE - NOR VALIDITY - MARKET RATE VS DEMURRAGE RATE - BUNKER COSTS When charterer directed the vessel to cease loading, as she had originally been directed not to start loading until directed by charterer, additional expenses were incurred by owner which owner claimed from charterer.  Then, at the disport the vessel was directed to wait outside the port and not tender NOR till directed.  Owner subsequently claimed this delay as damages rather than as demurrage and at a rate higher than the demurrage rate.
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Tenacity Marine Inc. v Ecopetrol, S.A. (The “Tenacity”) – SMA 4311, 20 April 2017

EXXONMOBILVOY2005 - DEMURRAGE - DELAY DUE TO FOG - WHETHER GALENA PARK A PORT OR IN THE PORT OF HOUSTON - WHETHER HOUSTON SHIP CHANNEL A RIVERPORT - RIVERPORT CLAUSE - DISPUTE OVER BURDEN OF PROOF - Charterer Award When charterer deducted fifty percent of a delay due to fog basis an exceptions clause, owner countered that the Houston Ship Channel was a riverport and thus the “Riverport(s) Clause” applied with the weather delay subsequently counting in full.  In addressing this question, the Panel also advised as to where the burden of proof would lie and whether Galena Park was a port.
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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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Castleton Commodities Shipping Co. Pte. v Vulica Shipping Ltd. – SMA 4287, 16 Sep 2016

BIMCO OREVOY VOYAGE CHARTER - VESSEL UNABLE TO LIFT MINIMUM QUANTITY - OWNER CLAIMS FORCE MAJEURE - CHARTERER REPUDIATES CHARTER AND CHARTERS SUBSTITUTE VESSEL A vessel arrived at the load port with a portion of her previous cargo frozen to the inside of her hold. After owner failed to secure a substitute vessel charterer terminated the charter and fixed its own sub. Charterer’s claim for damages was denied by owner who presented a counterclaim basis what owner believed to be charterer’s wrongful repudiation of the charter party.
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ADM International SARL v Colbun S.A (The “MN Bulk Orion”) – SMA 4281, 30 Jun 2016

VALIDITY OF NOR TENDERED PRIOR TO FREE PRATIQUE AND CUSTOMS CLEARANCE AND WITH STOWAWAYS ONBOARD - OWNER’S OBLIGATION TO DISCLOSE PRESENCE OF STOWAWAYS - WHETHER PANAMA CANAL EXPENSES DUE TO OVERLOADING FOR OWNER’S OR CHARTERER’S ACCOUNT Under a COA a vessel was nominated to carry coal from Colombia to Chile. Due to not yet having obtained free pratique and customs clearance, and whilst having stowaways onboard, Charterer argued that the NOR tendered at load was invalid. During transit to the disport the vessel was found in breach of Panama Canal draft restrictions and incurred unexpected expenses due to overloading which each party believes to be for the other party’s account.
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