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

London Arbitration 25/16

GENCON – DEMURRAGE/DESPATCH – CAN USED LAYTIME BE PRO-RATED BASIS THE NUMBER OF HATCHES WORKED – DID A WEATHER DELAY OCCUR – DID CHARTER JUSTIFY DEDUCTIONS DURING NIGHTTIME Regarding demurrage incurred, the charterer believed that the used laytime needed to be pro-rated basis the amount of hatches being worked at any given time. Additionally, the charterer requested deductions for bad weather and the times the ship was not working during nighttime hours. The owner disagreed with these points, and took the case to arbitration.
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London Arbitration 26/16

BALTIMORE FORM C BERTH GRAIN VOYAGE CHARTER – CARGO SHORT LOADED - BUYER DEMANDS DISCOUNT FROM CHARTERER AFFILIATED SELLER – CHARTERER CLAIMS DAMAGES IN THE FORM OF THE DISCOUNT FROM OWNER – WHETHER DISCOUNT REPRESENTATIVE OF DAMAGES - WHETHER CHARTERER EVEN LIABLE FOR LOSSES After a vessel was short loaded, the charterer affiliated seller had to sell the cargo at a discount due to buyer’s demands. The charterer then claimed damages from the owner in the form of the discount, arguing that the vessel was at fault for the short load. The owner rejected this, and the charterer brought the case to arbitration.
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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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London Arbitration 24/16

TIME CHARTER – HOLD INSPECTION FAILED – WHETHER DELAY IN RE-BERTHING AFTER HOLDS CLEANED AND PASSED INSPECTION OFF HIRE Upon arrival at the load port, the vessel’s holds failed inspection. After the holds were cleaned, the vessel was re-entered into the berthing queue. Charterer claimed the second delay in berthing was due to the holds failing inspection whereas owner claimed it was due to berth congestion.
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Imperator I Maritime Co v Bunge SA (The “Coral Seas”) – QBD (Comm Ct) (Phillips J) EWHC 1506 – 24 June 2016

TIME CHARTER - VESSEL FAILED SPEED WARRANTY DUE TO FOULING, ITSELF RESULTING FROM A PROLONGED WAIT IN TROPICAL WATERS - WHETHER FAILURE TO MAINTAIN SPEED THE RESULT OF COMPLIANCE WITH CHARTERER'S ORDERS Due to an underperformance caused by fouling on the Vessel, itself caused by extended stay in tropical waters as ordered by charterer, charterer claimed off hire. Owner countered stating the underperformance resulted from compliance with the charterer’s orders.
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London Arbitration 22/16

TIME CHARTER – PIRACY CLAUSE – OWNER TAKES SHORTEST ROUTE THROUGH DANGEROUS WATERS - ADDED SECURITY AND INSURANCE OBTAINED – CHARTERER CLAIMS THEIR PROVIDED ROUTE WAS SAFE – OWNER REQUESTS REIMBURSEMENT FOR COSTS A vessel was chartered to conduct a voyage from New Orleans to India. The Owner of the vessel traveled the shortest route possible, through a high piracy risk area, ignoring the Charterer’s order to proceed via a safer route. The Owner supported their decision by saying that it saved on steaming and bunker costs, and claimed reimbursement for insurance and the extra security obtained.
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London Arbitration 21/16

NORGRAIN 89 – HOLDS REJECTED – NOR RE-TENDERED AFTER LAYCAN – LAYCAN EXTENSION AGREED TO SUBJECT TO OWNER ACCEPTING CARRYING CHARGES – OWNER DID NOT RESPOND TO CHARTERER’S EXTENSION REQUIREMENT - OWNER CLAIMED DEMURRAGE – CHARTERER CLAIMED FOR CARRYING CHARGES With a prior NOR being deemed invalid due to holds being rejected, the vessel tendering NOR after the laycan but within a laycan extension. The Charterer stated the laycan extension was amenable subject to carrying charges being for owner’s account. Owner was silent when confronted with this requirement. Upon completion of the voyage, the owner claimed demurrage. The charterer rejected this claim, and counterclaimed for carrying charges.
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London Arbitraton 20/16

NYPE TIME CHARTER - UNDERPERFORMANCE - SHORT LOAD - BALANCE OF ACCOUNT - LMAA SMALL CLAIMS PROCEDURE - WHETHER CHARTERER OR OWNER RESPONSIBLE FOR COST OF SURVEYOR AND CRANE HIRE - SUEZ CANAL NRT - WITHOUT PREJUDICE AGREEMENT LATER REVOKED The redelivery of a vessel from an 18 month time charter resulted in charterer withholding hire due to vessel short loading, claiming underperformance in regards to speed, and claiming damages related to a misrepresented Suez Canal NRT. Owner countered all of these and likewise claimed for the cost of surveyors present whilst de-bunkering and the cost of a shore crane.
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