Category: Current

Articles from the current issue of TANKVOYager.

XCoal Energy v. Classic Maritime – SMA No. 4450, 16 August 2022

DAMAGES - COVID-19 - COA BREACH - BURDEN OF PROOF A December 2, 2019 contract of affreightment between XCoal Energy and Classic Maritime stated XCoal was to provide cargos for 6 - 7 vessels during the year 2020. Due to the Covid-19 pandemic, XCoal was only able to provide cargo for two vessels. Classic believed they should have been awarded damages of over US$ 4.4 million for the breach, however, XCoal asserted they owed far less, claiming Classic did not meet the burden of proof to warrant this higher claim.
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Team Tankers Deep Sea v. Tauber Petrochemical (MT “TEAM TOCCATA”) – SMA No. 4441, 18 March 2022

DEMURRAGE - COVID-19 - FORCE MAJEURE - DUE DILIGENCE - PANDEMIC On March 25, 2020, the Gujarat Maritime Board issued a declaration of a Force Majeure Event at Dighi Port where Team Toccata was due to berth after its discharge was completed at Kandla on April 19, 2020. Team Tankers Deep Sea claimed that the charterer, Tauber Petrochemical, owed demurrage for the entire 118.5 hours Team Toccata waited at Dighi before proceeding to the berth regardless of the force majeure event.
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London Arbitration 32/22 

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.
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London Arbitration 21/19

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.
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London Arbitration 31/32

DEMURRAGE – DETENTION – GENCON 94 – AWAITING ORDERS The subject vessel was chartered to carry wheat from the Russian Federation to Turkey. The owners claimed damages for detention at the discharge port, calculated at the demurrage rate. However, the charterer denied the provisions of the charterparty entitled the owner to these damages, and asserted the owner was only entitled to demurrage.
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BBC Chartering Carriers GmbH & Co. KG v. Usinas Siderurgicas de Minas Gerais (M/V “LEFKES”) – SMA No. 4446, 4 July 2022

DEMURRAGE – LAYTIME CALCULATION – AMENDED GENCON 1994 CHARTER – NO CORRESPONDENCE BBC Chartering Carriers and Usinas Siderurgicas de Minas Gerais entered into an amended GENCON charter to deliver galvanized steel coils from Praia Mole to Houston. After the voyage the charterer paid the freight invoice in full but disputed the total of the invoice for the demurrage costs. The charterer then gave no reasoning or defense for the disputed demurrage.
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Stolt Tankers B.V. v. Tricon Energy Limited (The “Stolt Lotus”) – SMA No. 4442, 11 April 2022

DEMURRAGE – TIME BAR – AMENDED ASBATANKVOY CHARTERPARTY – STORAGE OR DEMURRAGE Stolt Tankers was chartered by Tricon Energy Limited to ship mono ethylene glycol (MEG) from Baton Rouge and Houston to Antwerp. At Antwerp, the cargo was transshipped to two barges, but the shipments were rejected before discharge. The charterer could not find suitable shoretank storage before another buyer was secured. Stolt submitted invoices to Tricon for “storage” after their 90 day demurrage time bar. NOTE: This recap includes the majority decision and dissenting opinion.
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London Arbitration 16/22

ELECTRICAL FAILURE - OFF HIRE - REPUDIATORY BREACH - EARLY TERMINATION An electrical failure occurred on a vessel during a charter period. Both owner and charterer filed claims for the balance of the time spent fixing the issue.The charterer claimed that the vessel was off hire after the breakdown, because she could no longer perform the tasks they required. The owner claimed that the vessel was ready to perform the services that were initially instructed, and that the charterer was in breach of the charterparty.
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London Arbitration 27/22

COVID-19 - QUARANTINE -OFF HIRE- HEALTH AUTHORITY - AVIAN FLU - AMENDED NYPE - TIME CHARTER The subject vessel was chartered on an amended NYPE form to load in South America then discharge and redeliver in the Far East. When the vessel arrived at the load port, health authorities immediately quarantined the ship due to the bosun testing positive for COVID-19. The owner claimed a balance of hire of $275,108 for the quarantine period and delay. The charterer claimed that the vessel was off hire during the quarantine period and counterclaimed for damages due to the crew’s history before delivery.
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London Arbitration 11/22

TIME TRIP CHARTERPARTY – AMENDED NYPE 93– LEGAL FEES – DEVIATION CLAUSE – BUNKERS - CREW CHANGE - WEATHER DELAY A vessel was chartered for a 25-30 day period to load at a port in the Sea of Japan and discharge at a port in the South China Sea. The parties agreed the vessel would deviate to Hongai, Vietnam for a crew change. After leaving Hongai, the vessel encountered bad weather, resulting in a 1.05 day delay. The charterer claimed the weather delay would not have occurred if the vessel had made a direct journey. The owner claimed the vessel was on hire at the time of the weather delay.
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