Category: U.S. Maritime Cases

BBC Chartering Carriers GMBH v Primavera Importacao E Expoertacao De Carais LTDA and LT Cargo Transportes E Armazens Gerais LTDA. (The “Nalinee Naree”) – SMA 4313, 18 April 2016

DETENTION - REPUDIATED CHARTER PARTY - DEADFREIGHT - HULL CLEANING - MITIGATED DAMAGES After awaiting several weeks for cargo, the charter party was repudiated and the owner fixed mitigating voyages. Owner claimed for detention, deadfreight, and hull cleaning expenses.
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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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Interoceanic Corporation v Helm Dungemittel GMBH and Helm Fertilizer Corp. – SMA 4305, March 3, 2017

FOB SALE - VESSEL ARRIVING LATE - SECOND VESSEL NOMINATED - CONTRACT AMENDED FOR NEW LAYCAN - PRODUCER’S MARKETER CLAIMED DAMAGES FOR ALLEGED EFFORTS TO AVOID PLANT SHUTDOWN - BUYER CLAIMED FOR DEMURRAGE AND DAMAGES DUE TO MISSED OPPORTUNITY A contract was fixed for the sale of ammonium sulfate to be loaded in Pasadena, Texas. After the originally nominated vessel was to miss the laycan, a replacement vessel was nominated. The contract was then re-negotiated with a new window and cargo quantity. Later, the producer’s marketer claimed for damages incurred when several barges were loaded to avoid a plant shutdown. The buyer claimed for demurrage and damages due to a missed opportunity.
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Seatrade Group N.V. v Isabella Shipping Company Limited (The “Santa Catharina”) – SMA 4303, 21 February 2017

TIME CHARTER – VESSEL CRANE FAILURE – UNABLE TO USE 1 HOLD ON THE SHIP – CHARTERER WITHHELD A PROPORTIONATE SHARE OF HIRE – OWNER BELIEVED HIRE DUE IN FULL – CHARTERER GOING OUT OF BUSINESS – PARTIAL AWARD FOR SECURITY Although continuing to trade, due to a crane breakdown onboard a time chartered vessel cargo capacity was reduced for a month and a half for which the charterer withheld a pro rata share of hire. The owner countered that as no time was lost, hire is due in full. After the owner was informed that the charterer was going...
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Ellin E.N.E c/o Nereus Shipping v Castleton Commodities Shipping Co. Pte. Ltd. and Phillips 66 Company (The M/V “Romantic”) – SMA 4299, 11 Jan 2017

BPVOY4 - "ALL INCLUSIVE" FREIGHT COVERING ALL COSTS OF VOYAGE - RIVER BERTH REQUIRING STANDBY TUGS Afforded a range of ports within the fixture recap, Charterer directed the Vessel to a river berth wherein due to high current, standby tugs were required. Owner claimed the cost of the standby tugs from Charterer. Charterer pointed to freight being “ALL INCLUSIVE” and thus covering all costs of the voyage inclusive of standby tugs.
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Star Tankers, Inc. v. Chevron Marine Ltd. (The “SN Federica”) – SMA No. 4289, 23 Sep 2016

ASBATANKVOY - DEMURRAGE - NOR VALIDITY - EXPEDITE INSPECTION - SUBSTANTIAL READINESS – “ROOT CAUSE” PRINCIPLE Nearly 38 days after the tender of NOR, charterer inspected and subsequently directed the vessel to repair its anchor chain prior to berthing. The repair took 3 days. Charterer subsequently claimed that as the vessel was not ready the NOR was invalid with the 38 days for Owner’s account.
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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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Buenamar Compania Naviera, SA v Panatlantic Bulk Carriers, Inc. – SMA 1339, 9 Jun 1979

BALTIMORE BERTH GRAIN FORM - DEVIATION - LATE LOAD PORT NOMINATION - DEADFREIGHT - LT ALLOWANCE - ALWAYS AFLOAT Several disputes arose between an owner and charterer concerning a cargo delivery that took place from Texas to Columbia. This included a deviation claim arising from a late port nomination and a short load due to draft at the public elevator. The owner had attempted to prevent the issue by requesting a change in load port rotation, but this never came to fruition. The owner contended that the charterer failed to provide a berth whereat the vessel could load always afloat, and charged deadfreight for the unloaded quantity. A dispute also arose over whether laytime allowance should be received were deadfreight to be paid.
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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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