Category: U.S. Maritime Cases

Mediterranean Shipping Co. (USA) Inc. v. International Freight Services, Inc. – 2014 AMC 1442, 26 Mar 2014

CONTAINER DEMURRAGE -- DOCTRINE OF LACHES -- STATUTE OF LIMITATIONS -- DELAYED PROCEEDINGS -- INTEREST CALCULATION -- Plaintiff Award The Claimant’s container sat at the discharge port for a period of 4 years. During that time they issued 13 demurrage claims contemporaneously to the Cargo Merchant for the container’s running delay. However, the Defendant never paid, so once the container was returned by Customs, the Claimant brought admiralty action against the Defendant to recover those outstanding funds. As this was several years after the voyage (and a number of these claims), the Merchant argued that these claims were barred by laches.
To access this content, you must either Log In or Subscribe.

Hudson Shipping Lines Inc. v. TBS Ocean Carriers Ltd. (The “Seminole Princess”) – SMA No. 4239, 28 Aug 2014

NYPE -- GROUNDING -- SAFE PORT WARRANTY -- GOOD NAVIGATION AND SEAMANSHIP -- OFF HIRE -- REPAIR COSTS -- Charterer Award The Vessel grounded on an uncharted reef on her approach to the discharge port, Makassar, Indonesia, causing hull damage, loss of time, additional bunker consumption and other related expenses. At issue is whether Charterer breached the safe port warranty or whether Owner failed in exercising good navigation and seamanship.
To access this content, you must either Log In or Subscribe.

Agriculture & Energy Carriers Ltd. v. United Coals Inc. (The “Mardinik”) – SMA No. 4240, 10 Sep 2014

AMERICANIZED WESLSH COAL CHARTERPARTY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- LOST PROFITS -- Partial Owner Award Despite Charterer’s ongoing promise to supply cargo, after waiting 95 days, the Owner canceled the contract. Demurrage was awarded up to the time of contract cancellation, however, Owner’s claim for lost profits did not succeed owing to a lack of supporting evidence.
To access this content, you must either Log In or Subscribe.

Sherwin Alumina LP v. West Bulk Carriers – SMA No. 4230, 31 Mar 2014

CONTRACT OF AFFREIGHTMENT (COA) -- CONTRACT PRECEDENCE -- CHARTER CONSTRUCTION -- FREIGHT CALCULATION AND REIMBURSEMENT -- CARGO RELET -- Partial Owner Award Four years into an eight-year COA, Charterer started charging security and docking fees for vessels loading/discharging at their owned, nominated berth. In a previous award, the Panel held that Charterer had established a precedent which precluded them from charging Owner for these costs on time chartered vessels. This award covers the decis spot fixed relet voyages where these costs were factored into higher freight rates against and the calculation.
To access this content, you must either Log In or Subscribe.

BBC Chartering Inc. v. CVG Bauxilum, CA (The “Kronoborg” & The “BBC Georgia”) – SMA No. 4229, 24 Feb 2014

GENCON -- DETENTION DUE TO VESSEL GROUNDING -- UNPAID FREIGHT BEFORE BREAKING BULK (BBB) -- CARGO LEIN -- OUTSTANDING LIABILITY -- Owner Award Owner commenced Shortened Arbitration Procedures to recover $33K in demurrage, detention, and ancillary costs under two voyages. At issue under the first voyage concerned the Charterer’s “safe berth, safe port, always afloat” obligation as it relates to the Vessel’s grounding at the loadport, subsequent hull inspection costs, and departure delay. Under the second voyage the Owner enforced a lien on the cargo while awaiting Charterer’s freight payment and seeks compensation for detention.
To access this content, you must either Log In or Subscribe.

Ocean World Lines, Inc. v. Transocean Shipping Transportagentur GmbH – SMA No. 4226, 22 Jan 2014

AGENCY AGREEMENT -- CHOICE OF LAW -- JURISDICTION OF DISPUTE -- LEGAL AUTHORITY OF SIGNATORY -- CONTRACT AMBIGUITY -- Partial Owner Award For over seven years, the contract partners performed under an Agency Agreement dated 1 July 2005. During that time, some issues arose with regard to the formation and legality of the Contract, whether to apply U.S. or Austrian law, as well as questions of conduct like infringements and monetary claims. In this award the Panel must determine the governing law and jurisdiction.
To access this content, you must either Log In or Subscribe.

Star Tankers, Inc. v. Chevron Marine Ltd. (The “SN Federica”) – SMA No. 4224, 23 Dec 2013

ASBATANKVOY -- AMBIGUITY OF OWNER NAMED IN CHARTER PARTY -- CONTRACT REFORMATION -- DEMURRAGE -- Partial Owner Award This partial final award addresses the claimant’s right to assert a demurrage claim against Charterer, when the claimant is not expressly named as the Owner in the fixture recap. Star Tankers, as disponent Owner, filed a demurrage claim with Charterer which was rejected on the basis that the charter party names the Owner as Scerni Di Navigazion.
To access this content, you must either Log In or Subscribe.

Milestone Shipping SA v. Estech Trading, LLC (The “Santa Barbara”) – SMA No. 4218, 9 Oct 2013

GENCON -- FAILURE TO PROVIDE CARGO -- BEST EFFORTS -- DAMAGES -- Owner Award After the Vessel’s arrival at the loadport, the Charterer’s representative notified the Disponent Owner that they were unable to provide a cargo for the Vessel and had to cancel the charter party. The Disponent Owner brought arbitration proceedings against the Charterer to recover costs associated with their breach.
To access this content, you must either Log In or Subscribe.

Atlas Shipping AS v. Olendorff GmbH & Co. KG (The “Fomalhaut”) – SMA No. 4211, 8 Jul 2013

NYPE -- CHAIN OF TIME CHARTERS -- CONTAMINATED BUNKERS -- WHETHER CHARTERER PREJUDICED BY FAILURE TO PARTICIPATE IN EARLIER CONSOLIDATED DISPUTE -- Owner Award After bunkering, the Vessel sailed to the next port prior to receiving the bunker test results showing that the bunkers were off-spec (after the bunkers were already partially consumed). At the consolidated proceedings, the Owner was deemed liable for the resultant machinery damage but was awarded costs for debunkering, tank cleaning, rebunkering, and associated costs. At issue in this dispute is whether the last Charterer in the chain, who freely chose not to participate in the consolidated proceedings, is liable to indemnify the Time Chartered Owner.
To access this content, you must either Log In or Subscribe.

Zurich American Insurance Co. and Vinmar International Ltd., Inc. v. Team Tankers AS and Eitzen Chemical (The “Siteam Explorer”) – SMA No. 4216, 26 Aug 2013

ASBATANKVOY -- CARGO CONTAMINATION -- CARRIAGE OF GOODS BY SEA ACT (COGSA) -- Owner Award Charterer alleged that their cargo of Acrylonitrile (ACN) was allegedly contaminated onboard the Vessel resulting in a yellowing to a color rating of APHA 13 (exceeding the maximum resale spec of APHA 10).
To access this content, you must either Log In or Subscribe.