Author: Tom Haugen

DEMURRAGE – ASBATANKVOY – ARBITRATION CLAUSE – WHETHER ARBITRATORS HAD JURISDICTION – SETTLEMENT AGREEMENT  Charterer contended Owner’s demurrage and heating cost claim after it was brought to arbitration. It asserted that the claim was not in the arbitrator’s jurisdiction as it arose from the settlement agreement, which did not contain an arbitration clause.  Under an...

SPEED AND CONSUMPTION WARRANTIES – PERFORMANCE CLAIMS – GOOD WEATHER CONDITIONS – DOUGLAS SEA STATE – SIGNIFICANT WAVE HEIGHT  The Charterer claimed for damages for breach in the speed and performance warranty against Owner. Owner contended that there were no periods of time that satisfied “good weather” conditions.  Charterer issued a performance claim against Owner...

REPUDIATORY BREACH – CHARTER PARTY – EXISTENCE OF A COMPLETED CONTRACT – PRO FORMA CHARTER PARTY – COURT OF APPEAL The claimant charterer filed damages against defendant disponent owner for repudiatory breach of a charter party. The defendant argued that the presence of a Subject Review clause implied no formal contract existed. [dropcap]T[/dropcap]optip Holding Pte...

SALE OF GOODS (CFR) – DEMURRAGE – TIMELY PAYMENT OF FREIGHT – OBLIGATIONS UNDER SALES CONTRACT VS UNDER CHARTERPARTY – OWNERS REFUSING TO RELEASE BILLS OF LADING UNTIL FREIGHT PAYMENT

The CFR Sellers brought arbitration against their Buyers in order to indemnify themselves for demurrage caused by the Buyers delaying payment of the Owner’s freight.  Sellers argued that it was the Buyer’s responsibility to pay freight promptly under the contract. The Buyers countered that the obligation to pay freight accrued under the Seller’s charterparty, and therefore it was the Seller’s responsibility.  

TIME CHARTER – VESSEL’S CONDITION UPON REDELIVERY – BREACH OF CHARTER

When Charterer sat the Vessel at an equatorial port for 35 days, the Owner claimed underperformance damages incurred under a subsequent fixture and the cost to clean the hull.

DEMURRAGE – OIL SPILL – FORCE MAJEURE – PROCEED THERETO – REACHABLE ON ARRIVAL – ARREST OR RESTRAINT OF PRINCES – BPVOY3

Before the vessel’s arrival at port, a vessel at the vessel’s intended berth had an oil spill which delayed the vessel once she arrived at the port.  Charterer argued to split the delay 50/50 wherein owner stated that BPVOY3’s “proceed thereto” was to be read as “reachable on arrival”, the spill was not an exception, and the prior vessel’s arrest was not an “arrest or restraint of princes, rulers or people”.

DEMURRAGE – TIME BAR – ALL SUPPORTING DOCUMENTS – PRIMA FACIE – ASBATANKVOY

When owner’s claim for demurrage did not include all supporting documents, charterer time barred it.

DEMURRAGE – DETENTION – WHETHER VESSEL IN BREACH OF PUMP WARRANTY – WHETHER OWNER SHOULD BEAR EXTRA SHIFTING EXPENSES INCURRED WHEN THE VESSEL WAS ORDERED OFF THE DOCK DUE TO SLOW DISCHARGE – DELAY AWAITING DOCUMENTS AT DISPORT

Due to a slow discharge rate, the vessel was forced off her berth by port authorities. And after hoses disconnected at the disport, the vessel was delayed in departing for over 4 hours whilst awaiting documents onboard. Charterer denied Owner’s subsequent claims for demurrage, additional shifting expenses, and detention leading to this arbitration.