Author: Haugen Consulting
TIME CHARTER – LATE REDELIVERY – IMO 2020 FUEL REGULATIONS – LIABILITY FOR DE-BUNKERING OF HSFO – DETERMINING VALUE OF HSFO – DISTRESSED SALE OF HSFO – HULL CLEANING – APPORTIONMENT OF COSTS – NYPE
A dispute arose between disponent owners and charterers over a charterparty formed in May 2019. The charterparty was written based on the impending IMO 2020 fuel regulations. The vessel’s redelivery was delayed due to cargo payment issues, causing it to have excess HSFO onboard after the regulation’s deadline. Owners claimed losses, including voyage expenses, de-bunkering costs, HSFO value, cleaning expenses, port charges, and an outstanding hire balance. Charterers contested responsibility for late redelivery, arguing the contract did not explicitly cover HSFO-related issues and implying the owners were aware of the risks.
DAMAGES FOR REPUDIATORY BREACH – FIXING A SUBSTITUTE VESSEL BEFORE THE SUBJECT CHARTER– DETERMINING MARKET RATES FOR LOSSES – LOSSES RELATED TO STORAGE CHARGES AND PENALTIES DUE TO SWITCHING VESSELS
A vessel was chartered for the transport of bulk wheat from a Black Sea port to a Turkish port under an amended SYNACOMEX 2000 form. A disagreement arose due to the charterers’ failure to fulfill the contractual voyage, leading the charterers to claim US$90,829.99 in damages for a repudiatory breach.
TIME CHARTER – BALANCE ON FINAL HIRE ACCOUNTS – SPEED AND CONSUMPTION COUNTERCLAIM– CONDITIONS TO TIME-BAR COUNTERCLAIM – JURISDICTION OF ARBITRATOR OVER COUNTERCLAIM – REFERRAL OF COUNTERCLAIM TO WEATHER ROUTING COMPANY
After a vessel completed a voyage under a time-charter, disputes arose regarding the final hire accounts. The arbitration was referred to a sole arbitrator under the LMAA Small Claims Procedure 2017 (SCP). The owners claimed a balance of hire totaling US$49,423.30. The charterers maintained that they were owed damages of US$62,876.66 due to a speed and consumption issue and counterclaimed for the difference of US$16,170.82.
TIME CHARTER – DAMAGE TO VESSEL DURING DISCHARGE – REPAIRS REQUIRED AFTER DISCHARGE – CHANGE OF REDELIVERY – REIMBURSEMENT OF WAR-RISK BONUS TO CREW – DAMAGES FOR LOSS OF FOLLOW-ON FIXTURE
A vessel was chartered on the NYPE form with amendments for a time charter to transport bulk coal from Richards Bay in South Africa to one safe port, India or Pakistan, as per the charterers’ choice. The arbitration centered on the charterers’ failure to redeliver the vessel at the agreed location. Claims related to crew war-risk bonuses, lost earnings from a follow-on fixture, and waiting time were also put forward.
DEMURRAGE – ENGINE BREAKDOWN – SIX MONTH DELAY – CHANGES TO PORT REGULATIONS – CHANGE TO DISCHARGING PORT – DELAY TO DISCHARGE – SEAWORTHINESS OF VESSEL – ENGINE REPAIRS DELAYED DUE TO COVID-19 PANDEMIC CONDITIONS
A vessel was chartered to carry part cargo of steel pipes from Turkey to Futuna Island in the French Pacific Ocean Islands. An engine breakdown off Mauritius required lengthy repairs and was complicated by shortages due to the COVID-19 pandemic. Nearly a year later, the vessel arrived at the intended discharge port but was turned away due to new port entry requirements. The vessel was quickly rerouted to Fiji and incurred demurrage of US$37,317.71 while awaiting discharging operations to begin. Charterers refused to pay, claiming the delay was the owners’ fault, and arbitration proceedings commenced.
TIME CHARTER – BIMCO – ADDENDUM VALIDITY – BALANCE OF HIRE – CARGO CLAIMS – COUNTER-
SECURITY
A vessel was chartered for a time charter trip from India to Cotonou and Tema. The cargo was bagged
rice, and the charter included the BIMCO Standard Dispute Resolution Clause. A sole arbitrator presided
over the arbitration, which addressed the validity of an addendum agreement after the arbitration
proceedings had started, balance of hire, and counter-security for cargo claims.
AMENDED NYPE – TIME CHARTER – DEDUCTIONS FROM HIRE- SPEED AND CONSUMPTION- GOOD WEATHER AND SMOOTH SEA- WEATHER CONDITIONS – WEATHER ROUTING COMPANY REPORT
The subject vessel was chartered on an amended NYPE to transport steel from Brazil to Baltimore. After the voyage, the owners claimed a balance of hire which the charterers subsequently denied. Under dispute were speed and consumption, vessel weather reporting, and the weather routing company report.
DEMURRAGE – TROPICAL STORM- FORCE MAJEURE – DUE DILIGENCE – BAD WEATHER CLAUSE – TERMINAL CLOSING – PORT CLOSING – HURRICANE
A vessel chartered under a contract of affreightment was scheduled to load 60,000 mt of coal from a terminal on the Mississippi when the terminal ordered her to vacate the berth due to an impending hurricane. The owner claimed demurrage of US$330,495 for the time spent awaiting the vessel’s return to the berth, however, the charterer denied any liability for the demurrage incurred claiming bad weather, events outside of their control, and force majeure.
NYPE – DEDUCTION FROM HIRE – SHORE CRANE CHARGES – SPEED – CONSUMPTION
After Charterers had deducted hire based on shore crane charges as well as claimed underperformance and overconsumption from a chartered vessel, the Tribunal was left to determine if these charges were reasonable or if the shipowner’s evidence would disprove these actions.
CHARTER PARTY – SPEED AND CONSUMPTION CLAIM – WHETHER CHARTERER ENTITLED TO MAKE DEDUCTION FROM HIRE – WHETHER VESSEL UNDER PERFORMED
After Charterer filed a claim against shipowner for speed and over consumption as well as deduction of hire based on a report made by an independent weather bureau, the Tribunal was left to determine if the claim was unreasonable or if the shipowner had failed to make correct claims about the performance of their vessel.
