TIME CHARTER – DEATH OF MASTER - COVID-19 – QUARANTINE REQUIREMENTS – PANAMA CANAL - OFF-HIRE – CANAL TRANSIT AUTHORITIES - DELAY DUE TO COVID TESTING – HEALTH AUTHORITY HOLD – DETENTION – AMENDED NYPE FORM Shortly before its arrival at the Panama Canal in May 2021, complications arose on a time charter due to the unfortunate death of the vessel's master. The vessel was placed on hold until PCR test results were available, delaying transit through the Panama Canal and prompting claims by Charterers of off-hire and detention.
EMVOY SPECIAL CLAUSE 15 - EXXONMOBILE VOY2012 - CARGO STORAGE - DAMAGES - AUTHORITY OF BROKER TO REPRESENT BOTH PARTIES - MEETING OF THE MINDS The dispute between SeaRiver Maritime (Charterer) and Teekay Tankers Chartering (Owner) revolved around the terms of a charter party agreement for the vessel ZENITH SPIRIT. The key point of contention was the interpretation of Special Clause 15 from the contract written on an ExxonMobile VOY2012, with Owner claiming a guaranteed minimum of 90 days of storage, while Charterer contended that storage was at Charterer’s option.
EMVOY 2012 - WITHHELD SAMPLES - SAMPLE CONTAMINATION - JOINT SAMPLE TESTING - ARBITRABILITY - CAUSE OF CONTAMINATION An Owner and Charterer entered into a Contract of Affreightment (COA) for the transportation of bulk chemical products from Singapore to Australia. Sampling at the discharge revealed water droplets and cloudiness in the cargo. The Charterer withheld samples from the discharge from joint testing that was requested by the Owner to determine the cause of contamination.
VOYAGE SPEED - WEATHER - DEMURRAGE CLAIM - OWNERS GUARANTEE - SLOW STEAMING - ASBATANKVOY A voyage charter was made for the transport of clean petroleum product (CPP) from Cherry Point, Washington, to a Chilean port of the Charterer's choice. Owners initiated arbitration seeking a partial final award of outstanding demurrage, plus interest, costs, and attorneys' fees. Charterer disputed the claim, asserting that the vessel failed to meet the charterparty speed and failed to adhere to voyage orders, resulting in a missed discharge window.
PARTIAL PAYMENT - DAMAGES FOR DENTENTION - DEMURRAGE - FAILURE TO APPOINT ARBITRATOR - ACKNOWLEDGMENT OF DEBT - FAILURE TO MAKE PAYMENT This arbitration involved a charterparty for the transport of bulk aggregate sand from Kingston, Jamaica, to Nassau, Bahamas. Oslo Caribbean Carrier AS, the owner of the M/V SEA CARRIER, claimed outstanding demurrage payment and interest from Knowles Construction & Development Co. Ltd., the charterer.
DEMURRAGE - FAILURE TO NOMINATE VESSEL - BREACH OF CONTRACT - MITIGATION OF LOSS - PRINCIPLE OF MINIMUM PERFORMANCE This case involves a dispute arising from a trip charter for the shipment of coal from Indonesia to Thailand. The charterparty specified two voyages. The Owner failed to nominate vessels for these shipments, leading to a breach of the charterparty.
DEMURRAGE - GENCON 1994 FORM - FAILURE TO PROVIDE CARGO - BREACH OF CONTRACT - NON-PARTICIPATING RESPONDENT - UNCITRAL MODEL LAW - COMPENSATORY DAMAGES - NO APPOINTMENT OF ARBITRATOR The case involved a fixture recap that agreed cargo was to be loaded in Vietnam and delivered to a port in China. The charterers failed to provide the cargo despite repeated requests from the owners. The charterers refused to participate in arbitration and provided no defense.
DEMURRAGE - BPVOY4 - CLAUSE 13 INDEMNITY - VESSEL FREE OF LEGAL ISSUES – CARGO ON VESSEL ARRESTED - DELAY TO LOAD AT SECOND LOADPORT - INCREASE IN PURCHASING COSTS DUE TO DELAY - INDEMNITY AND WARRANTY CLAUSES - ASSUMPTION OF RESPONSIBILITY BY OWNERS - CAN CHARTERERS’ “GAINS” FROM INTERNAL HEDGING ARRANGEMENTS BE USED TO OFFSET OWNERS’ BREACH OF CHARTER CLAIM - REMOTENESS OF LOSS RULES FOR BREACH OF CONTRACT Disponent Owners chartered the tanker "Dijilah" from West Africa to China, then faced legal issues over sanction compliance by the commercial operator/owner. Property seizure by financiers caused delays, leading Charterers to pay an extra USD 3.7 million for cargo, but they gained USD 2.9 million internally. Disputes ensued as Owners claimed demurrage charges, countered by Charterers citing losses from the delay.
ADMIRALTY – SALE OF CARGO – DISPUTE OVER CARGO OWNERSHIP - VALIDITY OF BILLS OF LADING – WHETHER CARGO COULD BE SOLD WITH OWNERSHIP DISPUTE HTL, a UK commodity trading company, claimed ownership of nickel briquettes and held bills of lading for their shipment from Malaysia to India. A dispute arose with BLPL, the alleged contractual carrier, over ownership of the cargo. HTL sought to sell the cargo in Singapore and petitioned the Court to do so in advance of the ownership ruling.
BUNKERS ON REDELIVERY – MEANING OF “PRICE AT BOTH ENDS” - EXCEEDING 5 PERCENT ALLOWANCE – OFF-HIRE DUE TO CREW CHANGE – WRONGFUL DEDUCTION REPAID LATE – INTEREST Owners of a vessel chartered on an amended NYPE 1946 form sought compensation for market rate differences on bunkers at redelivery. The arbitration also dealt with crew changes, off-hire, and time spent on sub-chartering.
SPEED AND CONSUMPTION CLAIM – WEATHER ROUTING COMPANIES’ METHODOLOGIES – VERACITY OF DECK LOG DATA – DEADFREIGHT – SURVEY COSTS AND BANK CHARGES – HONG KONG SEAT A single-deck geared bulk carrier was chartered to transport nickel ore from the Philippines to China. Owners alleged wrongful deductions by the charterers for underperformance, deadfreight, survey costs, and bank charges and sought US$54,675.21. The arbitration centered on speed and consumption clauses and weather routing methodologies.