Author: Tom Haugen

Archive / English Maritime Cases

American Overseas Marine Corporation v. Golar Commodities Ltd (The “LNG Gemini”) – QBD (Comm. Ct.), 7 May 2014

TIME CHARTER -- INJURIOUS CARGO DEFINED -- DEBRIS IN PUMPS AND TANKS -- Charterer Award Under a time charter contract, the Vessel loaded a cargo of LNG for the Charterer’s account. After the operation, it was reported that debris could have been introduced into the cargo tanks, however nothing was noticeably wrong at the time. During the course of the following voyages, intermittent problems accumulated until the Vessel had to undergo extensive repairs. Owner blamed the Charterer’s cargo and filed a damages claim to recover their losses.
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Archive / Industry News

Maritime Industry News…In Brief

EBOLA VIRUS . . . Ebola has caused more than 3,300 deaths in west Africa, predominantly in Liberia, Sierra Leone, Guinea, and more recently in Nigeria. This pandemic impacts shipping contracts and as well as individual Port State Control (PSC) guidelines for vessels arriving from Ebola infected countries. In general, PSC checks a vessel’s last 10 ports of call and grants approval for disembarkation of crew and guards provided 21 days have elapsed since the Vessel’s call to an affected country. Vessels that have confirmed cases of ebola on board are placed in quarantine. Contracts treat this delay differently based on the...
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Archive / U.S. Maritime Cases

Hudson Shipping Lines Inc. v. TBS Ocean Carriers Ltd. (The “Seminole Princess”) – SMA No. 4239, 28 Aug 2014

NYPE -- GROUNDING -- SAFE PORT WARRANTY -- GOOD NAVIGATION AND SEAMANSHIP -- OFF HIRE -- REPAIR COSTS -- Charterer Award The Vessel grounded on an uncharted reef on her approach to the discharge port, Makassar, Indonesia, causing hull damage, loss of time, additional bunker consumption and other related expenses. At issue is whether Charterer breached the safe port warranty or whether Owner failed in exercising good navigation and seamanship.
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Archive / English Maritime Cases

Fulton Shipping Inc. of Panama v. Globalia Business Travel SAU (The “New Flamenco”) – QBD (Comm. Ct.), 21 May 2014

NYPE -- TIME CHARTER -- ANTICIPATORY BREACH – EARLY REDELIVERY – DAMAGES -- PROFIT FROM SALE OF VESSEL -- CAUSATION -- Owner Award Under a time charter contract, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim.
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Archive / English Maritime Cases

London Arbitration 12/14

NYPE -- TIME CHARTER -- PERFORMANCE WARRANTY -- SPEED AND CONSUMPTION -- GOOD WEATHER CRITERIA -- BREACH OF CHARTER -- CONTRACT LANGUAGE -- Owner Award During a winter voyage the Vessel allegedly underperformed and Charterer subsequently argued that the Owner was in breach of the speed and consumption warranties. Owner countered that the Vessel’s performance warranty was not absolute, but instead, was only applicable during periods of good weather.
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Archive / U.S. Maritime Cases

Agriculture & Energy Carriers Ltd. v. United Coals Inc. (The “Mardinik”) – SMA No. 4240, 10 Sep 2014

AMERICANIZED WESLSH COAL CHARTERPARTY -- FAILURE TO PROVIDE CARGO -- DEMURRAGE -- LOST PROFITS -- Partial Owner Award Despite Charterer’s ongoing promise to supply cargo, after waiting 95 days, the Owner canceled the contract. Demurrage was awarded up to the time of contract cancellation, however, Owner’s claim for lost profits did not succeed owing to a lack of supporting evidence.
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Archive / Industry News

Maritime Industry News…In Brief

In order to remain abreast of the maritime world, Haugen Consulting reviews the pertinent shipping news articles from around the globe and summarizes them for the busy industry member…in brief.   ESHIPS BOUGHT BY OLDENDORFF…The UAE-based tanker and drybulk shipowner and operator has been purchased by Germany’s Egon Oldendorff in a move to bolster their Middle East operations.   Although not fully realized, Oldendorff will take control of their business with the goal of generating “long term dry bulk freight contracts” with clients. STOLT TANKERS PROFITS DOWN…Stolt-Nielsen (SNI) reported a net profit of only $30.8 million for this quarter after last...
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Archive / U.S. Maritime Cases

Sherwin Alumina LP v. West Bulk Carriers – SMA No. 4230, 31 Mar 2014

CONTRACT OF AFFREIGHTMENT (COA) -- CONTRACT PRECEDENCE -- CHARTER CONSTRUCTION -- FREIGHT CALCULATION AND REIMBURSEMENT -- CARGO RELET -- Partial Owner Award Four years into an eight-year COA, Charterer started charging security and docking fees for vessels loading/discharging at their owned, nominated berth. In a previous award, the Panel held that Charterer had established a precedent which precluded them from charging Owner for these costs on time chartered vessels. This award covers the decis spot fixed relet voyages where these costs were factored into higher freight rates against and the calculation.
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Archive / English Maritime Cases

London Arbitration 11/14

WHETHER VESSEL "IN EVERY WAY FITTED FOR THE VOYAGE" -- SUITABILITY OF VESSEL’S MOORING EQUIPMENT FOR THE LOADING INSTALLATION -- REPUDIATORY BREACH -- DETENTION AND DAMAGES -- Charterer Award The Vessel arrived at loadport without the necessary equipment to operate safely at the shipper’s loading installation. Charterer cancelled the charter after the Vessel was viewed as unfit for the voyage. Owner claimed damages for Charterer’s rejection.
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Archive / English Maritime Cases

London Arbitration 10/14

VOYAGE CHARTER -- CALCULATION OF TIME BAR DATE -- CHARTERPARTY LANGUAGE -- MEANING OF "FINAL DISCHARGE" -- NO CARGO LOADED -- REPUDIATORY BREACH -- Partial Owner Award Prior to loading, Charterer cancelled the charter after the Vessel was deemed unfit. When Owner waited over three months from that notice to formally submit a claim for damages, Charterer argued that it was time barred.
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