Author: Ethan Fitzgerald

Archive / English Maritime Cases

Glory Wealth Shipping Pte Ltd v. Flame SA – QBD (Comm. Ct.) – 23 February 2016

CONTRACT OF AFFREIGHTMENT – CHARTERER’S FAILURE TO NOMINATE CARGOES – OWNER A DISPONENT OWNER – ASSESSMENT OF OWNER’S LOSS – Owner Award

A three year contract of affreightment was fixed to ship bulk commodities between 2009-2011. The global financial crisis caused Charterer to breach the COA by not nominating cargoes. Arbitrators would find that Owner had suffered no loss due to their utilization of third party companies to receive inward freight from the COA as well as pay outward freight to head owner. This decision was appealed by Owner with the intention being to prove Owner’s entitlement to $3 million in lost freight due to charterer’s breach.

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Archive / U.S. Maritime Cases

Jenlor International LLC v. Agribusiness United DMCC (The “Iris Halo”) – SMA No. 4268, 12 Apr 2014

DISCHARGE ALLOCATION – SHORT LOADED CARGO – DRAFT SURVEYS – OWNER ACTING WITHOUT CONSENT OF CHARTERER – DETENTION – DEMURRAGE

The cargo was loaded aboard the vessel according to Charterer’s orders and in line with the initial discharge allocation. However, the shore reading and multiple draft surveys indicated a loading figure 265 MT less than the aggregate B/L figures. After sailing the load port Charterer amended the discharge port rotation as well as the discharge allocation of the cargo onboard. And after completion of operations at the first discharge port Charterer’s receiver complained that the quantity received was short ~200MT and threatened legal action if the remainder was not provided. The vessel eventually obliged and sailed for her second discharge port wherein the same situation arose. The panel majority found the Owner’s actions to be acceptable with the third arbitrator dissenting.

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Archive / English Maritime Cases

Fulton Shipping Inc of Panama v. Globalia Business Travel SAU (The “New Flamenco”) – Court of Appeal [2015] EWCA Civ 1299, 21 Dec 2015

On 28 June 2017 the Supreme Court overruled the Court of Appeal and reinstated the Comm. Court’s ruling.  I.e. After repudiating the charter party, charterer is not entitled to a credit for the difference in diminished value between when the vessel was sold in 2007 versus had it been sold in 2009  when it was to have...

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Archive / English Maritime Cases

London Arbitration 16/15

GENCON 1976 – REDUCED DISCHARGE RATE – FORCE MAJEURE – DEMURRAGE – Owner Award

During unloading, the Vessel was directed to vacate the dock and wait until the berth once again became available. After a month of waiting, she was called back in and completed her discharge. Charterer rejected the resultant demurrage claim under the auspices that the unloading rate was reduced due to the ingress of water, the berth’s inefficiency in unloading was a force majeure event, and the removal of the Vessel from the berth by the port authority was a force majeure event.

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Archive / English Maritime Cases

London Arbitration 19/15

TIME CHARTER – CHARTER PROVIDING FOR LAYCAN TO BE BACK-TO-BACK WITH SHIPBUILDING CONTRACT – WHETHER CHARTERER FULFILLED OBLIGATIONS TO OWNER WHEN CANCELLING CHARTER – Charterer Award

Charterer cancelled the time charter under the interpretation that its right to cancel was “back-to-back” with owner’s shipbuilding contract. Owner disagreed that “back-to back” referred to its right to cancel in the shipbuilding contract leaving owner to claim a repudiatory breach of contract. Charterer in turn sought a declaration that it was entitled to cancel while owner counterclaimed for damages.

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Archive / U.S. Maritime Cases

Batca Global AS v. Prams Water Shipping Co Inc – SMA No. 4264, 13 Nov 2015

GENCON – NO LAYCAN – CANCELLATION OF CONTRACT- FORCE MAJEURE – WHETHER PRE-PAID FREIGHT TO BE REFUNDED- FAILURE TO COMPLY WITH ARBITRATORS’ ORDERS- Owner Award

Charterer and Disponent Owner agreed to transport cows from northeastern US to Turkey under a consecutive voyage charter. Before the recognized load date for the first voyage Charterer requested extensions and ultimately cancelled the charter due to a fire at the receiving facility and the Syrian civil war which saw fighting on Turkey’s border with Syria. Charterer sought to recover $600k in pre-paid freight from Owner with Owner rejecting Charterer’s claim and countering for unpaid freight and lost profit on the unperformed voyages.

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