Author: John Calandrello

Archive / English Maritime Cases

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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Archive / English Maritime Cases

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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Archive / English Maritime Cases

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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Archive / English Maritime Cases

London Arbitration 17/16

TIME CHARTER/ SUB-CHARTER – CARGO SHORTAGE AND CARGO DAMAGE – CLAIM SETTLED BETWEEN REGISTERED OWNER AND RECEIVER – DISPONENT OWNER DISPUTES COST ALLOCATION – WHETHER COSTS TO BE APPORTIONED WITH CHARTERER A vessel was time chartered by a registered owner to a disponent owner, and then subsequently spot chartered to a sub-charterer to transport sugar. After the voyage, it was discovered that there was a cargo shortage and damaged and lost cargo. After the registered owner concluded a settlement with the receivers for damages, the registered owner attempted to collect the same amount from the disponent owner with an apportionment of the costs subsequently coming into question.
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Archive / English Maritime Cases

London Arbitration 11/16

EXTENSIVE DELAY PURSUING CLAIM IN ARBITRATION – WHETHER DELAY INORDINATE AND INEXCUSABLE – WHETHER SETTLEMENT NEGOTIATIONS ONGOING DURING DELAY - WHETHER NEGOTIATIONS CONSTITUTED A STAY OF PROCEEDINGS Respondent requested an arbitration claim be withdrawn citing an inordinate and inexcusable delay in moving forward with proceedings. The claimant countered that the delay was due to both parties agreeing to stay proceedings whilst working towards a settlement.
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Archive / English Maritime Cases

ST Shipping and Transport Pte Ltd v. Space Shipping Ltd (The “CV Stealth”) – QBD (Comm Ct), 20 April 2016

SHELLTIME 4 – VESSEL DETAINED FOR INVALID AUTHORIZATION FORM – OFF HIRE – OWNER DISAGREES CITING CONTRACT TERMS – Owner Award Whilst in a Venezuelan port the vessel was detained after an invalid authorization form was discovered by the Port Authorities. The charterer claimed the vessel was off-hire during the detention. The owner disagreed and commenced arbitration.
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Archive / U.S. Maritime Cases

SMA No. 4273, Team Tankers As v Vinmar International Limited, “Siteam Adventurer”, November 18, 2014

ASBATANKVOY - ADVERSE WEATHER OR NIGHTTIME TRANSIT RESTRICTION – DEMURRAGE CLAIM SHORT PAID WITHOUT OWNER’S AGREEMENT - Owner Award Charterer and owner disagreed as to whether the root cause of a delay was a nighttime transit restriction or weather related subsequently warranting a 100% or 50% deduction respectfully. Charterer ended up short paying the owner’s claim and considering the case closed. The owner brought arbitration for the remainder.
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Archive / English Maritime Cases

Glencore International AG v. PT Tera Logistic Indonesia and Another – QBD (Comm. Ct.), 29 January 2016

ARBITRATION – COUNTERCLAIM SUBMITTED AS DEFENSE DURING ARBITRATION – QUESTION AS TO WHETHER COUNTERCLAIM TIME BARRED – Charterer Award Four contracts were negotiated between two parties regarding the charter of floating cranes. Later, the owner brought an arbitration case in an attempt to recover detention. With its defense at the arbitration, the charterer counterclaimed for demurrage. The arbitration panel found that the charterer’s counterclaim was time-barred. The charterer appealed.
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Archive / English Maritime Cases

London Arbitration 5/16

COA – CARGO CONFISCATED BY GOVERNMENT - WHETHER DEMURRAGE IS OWED BY CHARTERER – WHETHER CHARTERER ENTITLED TO LAYTIME – Owner Award A COA was negotiated for eight shipments of nickel ore. During the second delivery, operations were stopped and the ship, inclusive of cargo loaded, was confiscated due to suspicions that the cargo was illegally mined. After release of the Vessel a couple months later and then the completion of the operation, a few months after the release, the owner claimed that the charterer was liable for demurrage and was not to receive allowed laytime given charterer had failed to load a cargo. The charter rejected this contention and the owner brought the case to arbitration.
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Archive / English Maritime Cases

SBT Star Bulk & Tankers Gmbh & Co KG v. Cosmotrade SA (The “Wehr Trave”) – QBD (Comm. Ct), 22 March 2016

TIME CHARTER – WHETHER CHARTERER CAN ORDER VESSEL TO CONDUCT ADDITIONAL VOYAGE AFTER FIRST VOYAGE – Charterer Award A time charter was negotiated regarding a voyage that allowed for multiple load and discharge ports. During discharge at the final port, the charterer ordered the vessel to begin an additional voyage. The owner rejected the assertion that the charterer was within their rights under the charterparty to conduct additional operations. An arbitration panel ruled in favor of the charterer with the owner subsequently appealing to the High Court.
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