Jan, 2018. Maritime Digest of Arbitration Awards and Court Rulings

London Arbitration 11/18

TIME CHARTER PARTY – OFF HIRE – SUB-CHARTER – OFF SPECIFICATION CARGO – WRONGFUL REDELIVERY When vessel was detained due to legal proceedings by the receiver against the charterer due to off spec cargo, charterer deducted the lost time from hire. his arbitration was consolidated from two that were held concurrently in accordance with para 14(b) of the LMAA Terms. Charterer under an amended Shelltime 4 form chartered the vessel from Owner for a time charter for a period of forty to seventy-five days with redelivery of the vessel in “med/black sea”. Subsequently the Charterer then sub-chartered the vessel under...
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London Arbitration 9/18

TIME CHARTER – OFF-HIRE PROVISIONS – VESSEL PERFORMANCE – SPEED – CONSUMPTION – TIME BAR – HAGUE RULES Charterer made deductions to hire that were attributed to underperformance of the vessel. These deduction claims were submitted using the off-hire provision. Owner contended off-hire provisions did not account for deductions made in regard to vessel performance, and in any case performance claims were time-barred. he Charterer made deductions to the hire sum totaling $729,158.76, of which about $450,000 was attributed to vessel underperformance regarding speed and the overconsumption of bunkers. Charterer’s performance claims were described as “off-hire due to under performance...
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London Arbitration 4/18

TIME CHARTER PARTY – SLOW CRANE MOVEMENT DURING LOADING – UNDERPERFORMANCE OF VESSEL – WHETHER OWNER IN BREACH OF CHARTER PARTY Charterer claimed for time lost due to perceived slow movements of vessel’s cranes during loading operations and underperformance of vessel. It asserted that for both disputes the Owner breached warranties in the charter party. harterer filed claims against Owner over two disputes arising during a single time charter voyage. The first dispute brought by the Charterer was that the cranes utilized in the vessel’s loading operations were moving slowly and subsequently lost them time to the amount of 1.89...
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Glencore Energy UK Ltd v OMV Supply and Trading Ltd – QBD (Comm Ct) (Sir Ross Cranston) [2018] EWHC 895 (Comm) – 23 April 2018

DEMURRAGE – DETENTION – TIME BAR – NOTICE OF READINESS Vessel was requested to wait in gulf outside discharge port due to a lack of berthing prospects. Owner invoiced detention inclusive of extra bunkers consumed from CFR seller whom in turn claimed it from the CFR buyer.  The CFR time-barred the claim via the demurrage time bar clause. lencore Energy UK Ltd (hereinafter, “Glencore”) sold 80,000 mt of light crude oil CFR to OMV Supply and Trading Ltd (hereinafter, “OMV”) to be loaded at Novorossiysk, Russia and carried by a vessel that was to be nominated to the discharge port...
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Lexmar Corporation of Liberia, Chartered Owner, and Tricentrol Oil Trading Inc., S.A., Charterer, of the M/T GLEFI I – SMA 3199

VOYAGE CHARTER PARTY – DETENTION – SAFE PORT – SAFE BERTH – PORT OF HOUSTON Under the auspices that the Port of Houston was an unsafe port when the Vessel could not depart its discharge berth after a tug sank in the ship channel, Owner claimed detention.  Charterer contended that the contractual agreement ended upon the completion of discharge and disconnection of the hoses and that the accident in the ship channel was abnormal, unexpected, and beyond Charterer’s control. exmar Corporation of Liberia (hereinafter, “Owner”) claimed detention to the amount of $90,077.48 plus interest from Tricentrol Oil Trading Inc. (hereinafter,...
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Blue Fin Tankers Inc. as Disponent Owner of the MIT DA YUAN HU and MIT DA MING HU as Claimant, and Owner and Tesoro Far East Maritime Company SA as Charterer, and Respondent – SMA 4323

DEMURRAGE – SUSPENDED LAYTIME – TAKING ON LUBE / SPARES – INTERNAL STRIPPING – PUMP WARRANTY – INTEREST – ASDEM PUMPING PERFORMANCE FORMULA Upon receipt of Owner’s demurrage claims, charterer deducted time whilst Vessel loaded lube and spares, internal stripping during discharge, and a deduction for failing to discharge within the warranted 24 hours or maintain an average of 100 PSI at the manifold. his arbitration was initiated by Blue Fin Tankers Inc. (hereinafter, “Owner”) against Tesoro Far East Maritime Company SA (hereinafter, “Charterer”) in regards to disputes over demurrage claims with respect to three voyage charters. The charters were...
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Toptip Holding Pte Ltd v Mercuria Energy Trading Pte Ltd and Another (The “Pan Gold”) – Court of Appeal (Sundaresh Menon CJ, Andrew Phang Boon Leong and Judith Prakash JJA) SGCA 64 – 23 November 2017

REPUDIATORY BREACH – CHARTER PARTY – EXISTENCE OF A COMPLETED CONTRACT – PRO FORMA CHARTER PARTY – COURT OF APPEAL The claimant charterer filed damages against defendant disponent owner for repudiatory breach of a charter party. The defendant argued that the presence of a Subject Review clause implied no formal contract existed. optip Holding Pte Ltd (hereinafter, “Toptip”) as charterer claimed damages against Mercuria Energy Trading Pte Ltd (hereinafter, “Mercuria”) as disponent owner for repudiatory breach of a charter party. Toptip claimed for the difference in freight rate between the charter party with Mercuria and the substitute charter party. The...
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London Arbitration 2/18

SALE OF GOODS (CFR) - DEMURRAGE - TIMELY PAYMENT OF FREIGHT - OBLIGATIONS UNDER SALES CONTRACT VS UNDER CHARTERPARTY - OWNERS REFUSING TO RELEASE BILLS OF LADING UNTIL FREIGHT PAYMENT The CFR Sellers brought arbitration against their Buyers in order to indemnify themselves for demurrage caused by the Buyers delaying payment of the Owner’s freight.  Sellers argued that it was the Buyer’s responsibility to pay freight promptly under the contract. The Buyers countered that the obligation to pay freight accrued under the Seller’s charterparty, and therefore it was the Seller’s responsibility.  
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London Arbitration 3/18

VOYAGE CHARTER - DEMURRAGE – TIME BAR – VALID NOTICE OF READINESS – FAILURE TO PROVIDE CARGO Charterer cancelled a voyage charter party after failing to provide cargo. Owner claimed demurrage and damages from the alleged repudiatory breach.  Charterer countered that the claim was time barred, the Vessel’s NOR was invalid, and the damages if awarded, should be basis the C/P’s lowest freight option.
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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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