Author: Tom Haugen

Transunisa Shipping S.A. de. C.V., as voyage Charterer, and Searail de Mexico SA de CV as Supplier – SMA 4379

BOOKING CANCELLATION – DEADFREIGHT – WHETHER CHARTERER CAN PASS DEADFREIGHT COSTS TO SUPPLIER The supplier in question unilaterally canceled the booking agreement with their charterers whilst the vessel was already on approach to the load port. This cancellation was the direct cause of dead freight incurred by the Charterer – which was subsequently passed to the Supplier. The Charterer was later awarded the dead freight, interest, owner’s fees, and arbitration fees.
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Quiana Navigation SA v. Pacific Gulf Shipping (Singapore Pte Ltd (The “Caravos Liberty”) – QBD (Comm Ct), 21 November 2019

NYPE - TIME CHARTER - HIRE - ANTI-TECHNICALITY NOTICE (ATN) - BIMCO NON-PAYMENT OF HIRE CLAUSE - REPUDIATORY BREACH The charterer and the owner of a vessel got into a dispute over the alleged overconsumption of fuel. The appeal of the owner was later dismissed.
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London Arbitration 16/19

DEMURRAGE – LAYTIME – NOTICE OF READINESS – LACK OF ANCHORS – RIVER NAVIGATION – WHETHER NOTICE OF READINESS IS VALID – ESCORTING TUGS – DELAY TO BERTH After previously losing one of it’s anchors in a storm, the pilot refused to navigate the vessel up river unless the Owner also hired an escort tug. This option was refused by Owners, ultimately delaying the vessel to the discharge berth.
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London Arbitration 7/19

OFF-HIRE – RIGHT TO EQUITABLE SET-OFF – WHETHER DEDUCTION WAS MADE FOR OFF-HIRE OR HIRE WAS SUSPENDED Owner made several claims against Charterer for deductions made to balance of hire. Charterer issued counterclaims and sought to use right to equitable set-off. Further, Charterer asserted that hire was suspended rather than deducted as off-hire.  Upon completion of a time charter voyage on an amended NYPE form Owner claimed for a balance of $237,719.07, and initiated arbitration proceedings. Following this claim Owner made two applications for arbitration.  The first was for the immediate award of $80,925.74 amounting from a hire statement drawn...
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London Arbitration 10/19

DEMURRAGE – DESPATCH – WHETHER NOTICE OF READINESS TRIGGERED WHEN SIGNED BY OWNER’S AGENT – LAYTIME – LOADPORT ANALYSIS REPORTS – SALES CONTRACT Following a delay in discharging cargo, the Seller claimed demurrage from the Buyer. The Buyer contended that laytime commenced at a later date, since the Seller had failed to provide loadport analysis reports as provided in the sales contract and a requirement to the tender of notice of readiness. Further, the notice of readiness provided by the Seller was sent to X, the notify party, who the Seller believed was an agent of the Buyer.  The Buyer...
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London Arbitration 12/19

DEMURRAGE – LAYTIME – NOTICE OF READINESS – WHETHER NOR WAS VALID – WEATHER WORKING DAYS – BAD WEATHER – FORCE MAJEURE  Charterer excepted laytime from counting for several issues arising at the loading and discharge ports. The issues being whether the first notice of readiness was valid, whether a storm warning constituted bad weather, whether the force majeure provision was applicable, and whether bad weather prevented discharge.  This arbitration followed the determination from London Arbitration 11/19, which found that the Charterer would not be allowed to serve counterclaims and defense submissions against Owner. Owner claimed demurrage amounting to $174,025.77...
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London Arbitration 13/19

DEMURRAGE – REPUDIATORY BREACH – ARRIVED AND ALL RESPECTS READY TO LOAD – WHETHER NOR WAS VALID – NOTICE OF READINESS – FORCE MAJEURE – LIABILITY FOR FAILED HOLD INSPECTION Upon vessel’s arrival at the Southwest Pass of the Mississippi River the Master tendered NOR to a port upriver.  Charterer’s independent surveyor then found that the holds were not clean whereas after a second, this time successful, inspection loading was further delayed due to an oncoming hurricane which grounded the vessel. Owner claimed demurrage, damages for loss of profit, and compensation for lost bunkers. Charterer asserted that the NOR was...
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London Arbitration 14/19

BILLS OF LADING – WHETHER BILLS OF LADING WERE RELEASED ON TIME – CARGO SHORTAGES – PORT SECURITY CHARGES – DRAFT SURVEYS – DEMURRAGE – FREIGHT PAYMENT Charterer claimed against Owner with regard to several issues arising from a reported cargo shortage accounted by the loading port draft survey. Accompanying this, issues arose with regard to a delay in the release of the bills of lading. Owner contested the claims and issued a counterclaim against Charterer for demurrage.  Disputes arose between Owner and Charterer for a voyage chartered on an amended Norgrain form from Savannah, US to Huelva, Spain, Casablanca,...
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London Arbitration 15/19

SPEED AND PERFORMANCE – WHETHER LOST TIME AND EXPENSES TO BE FOR CHARTERER – HULL CLEANING – PROLONGED PORT STAY When the Vessel required hull cleaning after a prolonged port stay Charterer contended that they were not liable for time and expenses as the inspection and cleaning occurred after redelivery.  During a voyage chartered on an amended NYPE 1993 form the Vessel encountered a prolonged port stay, which necessitated hull cleaning. Charterer claimed the time and expenses of the cleaning would not be for their account due to the structuring of the clause providing for extended port stays. The relevant...
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Koyo Kaiun Co. Ltd., as Claimant-Owner of the MT Clarice, MT Amelia, MT Xena and Liquistream Americas Inc. as Respondent – SMA 4347

DEMURRAGE – TIME BAR – DOCUMENTARY REQUIREMENTS – STATEMENT OF FACTS – PORT LOGS – PARTIAL FINAL AWARD  Owner claimed demurrage against Charterer, who contended that the claims were time-barred per clauses added by Charterer to the charter fixtures.  This partial final award covered three separate demurrage claims that were consolidated into a single proceeding. Koyo Kaiun Co. Ltd. (hereinafter, “Owner”) claimed against Liquistream Americas Inc. (hereinafter, “Charterer”), who contended that the claims were time-barred per the agreed contract. The main dispute of this partial final award was whether the claims are time-barred, and not the specifics of the amount...
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