Feb, 2020. Maritime Digest of Arbitration Awards and Court Rulings

Caribe Tankers, Ltd. as Disponent Owner of the CARIBE ROSA and Murex LLC, as Charterer – SMA 4370

DEMURRAGE – NO APPEARANCE – PAYMENT OF INTEREST AND ARBITRATION COSTS  Owner sought payment of outstanding demurrage amount from Charterer and initiated arbitration proceedings. Charterer failed to participate in the proceedings, but it did submit payment of the outstanding demurrage amount following Owner’s submissions. Owner claimed for interest, attorney’s fees, and arbitration costs against Charterer.  Caribe Tankers, Ltd (hereinafter, “Owner”) brought arbitration proceedings against Murex LLC (hereinafter, “Charterer”) over an unpaid demurrage amount totaling $31,119.08. The demurrage charges incurred under two charters, both fixed under Asbatankvoy, and two voyages of the CARIBE ROSA. Owner requested consolidation of the two demurrage...
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Alize 1954 and Another v Allianz Elementar Versicherungs AG and Others (The “CMA CGM Libra”) – QBD (Comm Ct) (Teare J) [2019] EWHC 481 (Admlty) – 8 March 2019

GENERAL AVERAGE – WHETHER VESSEL WAS UNSEAWORTHY – OBLIGATION TO EXERCISE DUE DILIGENCE – WHETHER PASSAGE PLAN WAS DEFECTIVE Cargo interests refused to contribute to general average after the Vessel was grounded. It claimed the grounding was the result of the Owner’s failure to exercise due diligence in providing a seaworthy vessel.  When the container vessel CMA CGM LIBRA (hereinafter, “Vessel”) was grounded whilst departing the port of Xiamen, China the cargo interests denied contribution to general average due to the cause of the grounding. The Owner stated that the grounding occurred as a result of an uncharted shoal. It...
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Eleni Shipping Ltd v Transgrain Shipping BV (The “Eleni P”) – QBD (Comm Ct) (Popplewell J) [2019] EWHC 910 (Comm) – 10 April 2019

PIRACY – HIRE – APPEAL – WHETHER CAPTURE AND ARREST CLAUSE APPLIED – WHETHER PIRACY CLAUSE APPLIED Owner claimed for lost hire from Charterer totaling about $5.6 million, the majority of which was lost due to the Vessel being captured by pirates. To support their claim, the Owner stated the capture and arrest clause did not apply since the Vessel was not captured by an “authority” as provided in the clause. Further, it was stated the piracy clause did not apply due to the capture occurring outside the geographical location listed in the clause.  The Owner of the Eleni P...
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Aprile SpA and Others v Elin Maritime Ltd (The “Elin”) – QBD (Comm Ct) (Stephan Hofmeyer QC sitting as a Judge of the High Court) [2019] EWHC 1001 (Comm) – 18 April 2019

DAMAGES – LOSS OF CARGO – WHETHER SEAWORTHINESS IS AN ABSOLUTE OBLIGATION – EXCLUSION CLAUSE – BILL OF LADING  Cargo interests claimed damages against Owner for loss of deck cargo during the voyage. It was asserted that the Owner was liable due to negligence and its failure to ensure the vessel was seaworthy upon commencing the voyage. Owner contended that the exclusion clause provided in the bill of lading was applicable since it covered damages “howsoever caused”.  The cargo interests (Aprile SpA and Others) claimed damages against Elin Maritime Ltd (hereinafter, “Owner”) for the loss of deck cargo resultant from...
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Sonact Group Ltd v Premuda SpA (The “Four Island”) – QBD (Comm Ct) (Males J) [2018] EWHC 3820 (Comm) – 12 December 2018

DEMURRAGE – ASBATANKVOY – ARBITRATION CLAUSE – WHETHER ARBITRATORS HAD JURISDICTION – SETTLEMENT AGREEMENT  Charterer contended Owner’s demurrage and heating cost claim after it was brought to arbitration. It asserted that the claim was not in the arbitrator’s jurisdiction as it arose from the settlement agreement, which did not contain an arbitration clause.  Under an amended Asbatankvoy form the vessel Four Island was chartered for carriage of fuel oil from Kavkaz to the discharge port of Novhodka in Russia. Owner claimed for demurrage and heating costs against Charterers totaling $909,148.08, which was settled in emails where the Charterer agreed to...
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London Arbitration 6/19

SPEED AND CONSUMPTION WARRANTIES – PERFORMANCE CLAIMS – GOOD WEATHER CONDITIONS – DOUGLAS SEA STATE – SIGNIFICANT WAVE HEIGHT  The Charterer claimed for damages for breach in the speed and performance warranty against Owner. Owner contended that there were no periods of time that satisfied “good weather” conditions.  Charterer issued a performance claim against Owner amounting to a total of $128,388.86 for lost time and overconsumption of bunkers during a time charter trip from South Africa to China. Owner contended that they were not in breach of the speed and consumption warranty as there were no days that satisfied the...
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L.R. Mimosa Limited, as Owner – Claimant and Panamax International Shipping Co., as Charterer – Respondent – SMA 4338

DUE DILIGENCE – SAFE PORT SAFE BERTH WARRANTY – OIL SPILL – THIRD PARTY DAMAGES – SINGLE-POINT MOORING BUOY – PARTIAL FINAL AWARD Owner claimed against Charterer for hire and indemnity from a pollution incident during discharging operations. The basis of the Owner’s claim was the Charterer failed to exercise due diligence in nominating a safe berth. This partial final award determined the result of the indemnity claim. nder a time charter party on the Shelltime form with amendments, LR Mimosa Limited (hereinafter, “Owner”) entered into a charter of the M/T MIMOSA (hereinafter, “Vessel”) with Panamax International Shipping Company (hereinafter,...
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London Arbitration 22/18

TIME CHARTER – OFF-HIRE – HULL CLEANING – PERFORMANCE CLAIMS – OVERCONSUMPTION OF BUNKERS – GOOD WEATHER DAY – EXERCISE OF LIEN – DELAY Several disputes arose between Owner and Charterer under a time charter voyage with respect to off-hire, vessel performance, delays after discharging, and exercising liens. his arbitration covered several disputes arising from a voyage under a time charter on an amended NYPE form from Australia to India with a cargo of coal. The vessel made call in Singapore whilst on the way to the discharge port where the Charterer intended to bunker the vessel and the Owner...
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London Arbitration 21/18

PERFORMANCE CLAIMS – SPEED AND CONSUMPTION – “ABOUT” TOLERANCES – CURRANT FACTORS – WEATHER ROUTING SERVICES – AIS – OFF-HIRE Charterer claimed against Owner for issues regarding vessel performance and off-hire. harterer claimed the vessel underperformed and overconsumed on a voyage, which was chartered under an amended NYPE form for a time charter. The Charterer supported their performance claim by supplying reports of the vessel’s performance from three weather routing companies. These three companies were referred to as X, Y, and Z throughout the arbitration. In the weather routing clause of the charter party the Charterer was warranted not to...
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ADM International SARL, as Shipper and Reederei M. Lauterjung GmbH & Co. Independence KG, as Owner of the M/V FEDERAL MIRAMICHI, under Bills of Lading dated December 28, 2011 – SMA 4344

PARTIAL FINAL AWARD – TIME BAR – HAGUE-VISBY RULES – COGSA – TRANSSHIPMENT – INDEMNITY – WHETHER CLAIM WAS RELATED TO CARGO DAMAGES OR INDEMNITY – UNSEAWORTHY Under a voyage charter the vessel became disabled whilst proceeding to the discharge port. Charterer incurred costs relating to salvage and transshipment of the cargo and claimed the amounts from the Owner and disponent owner. Owner contended that the claims were time-barred under COGSA and the Hague Rules. DM International Sarl (hereinafter, “ADMI”) claimed against FEDNAV International Ltd. (hereinafter, “FEDNAV”) and Reederei M. Lauterjung GmbH and Co. (hereinafter, “Owner”) for a dispute involving...
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