Category: English Maritime Cases

Lord Marine Co SA v Vimeksim SRB DOO (The “Lord Hassan”) [2024] EWHC 3305 (Comm) King’s Bench Division, Commercial Court – Bryan J – 4 October 2024

CONGENFORM 1994 – VOYAGE CHARTER – FREIGHT NOT PAID – LIEN ON CARGO – SALE OF GOODS
On 2 April 2024, Lord Marine Co SA and Vimeksim Srb DOO agreed a voyage charter for the Lord Hassan, granting the owners a lien for unpaid freight. About 11,000 mt of Ukrainian corn was shipped to Turkey under a bill marked “Freight Prepaid,” though no freight was actually paid. The owners retained the bill, exercised a lien, and sought a court-ordered sale as the cargo deteriorated, with ownership and receiver roles unclear.

LONDON ARBITRATION 4/25

NYPE – TIME CHARTER – OFF HIRE – VESSEL TIME CHARTER – OFF HIRE – VESSEL PERFORMANCE – GRABS – BUNKERS ON REDELIVERY – PROCEDURAL DEFAULT – EFFECT OF CHARTERERS’ DISSOLUTION
This arbitration concerned disputes arising under a single-trip time charterparty on an amended NYPE 1981 form. Owners sought recovery of US$157,967.39 for hire withheld by charterers, together with interest and costs. Charterers had deducted 3.42 days’ hire based on alleged speed and consumption underperformance of the vessel and substandard grab operations. Owners also claimed damages for a shortfall in bunkers upon redelivery.

London Arbitration 1/25 

AMENDED GENCON FORM – FAILURE TO DELIVER CARGO – DEMURRAGE – DAMAGES FOR HIRE – SUB-CHARTER COLLATERAL
The Parties agreed to a voyage charterparty for transporting bulk petcoke using a Gencon 1994 Form. On the same day, the Charterers made a sub-voyage charter with Sub-Charterers. When the vessel tendered Notice of Readiness (NOR), Owners were told the intended 53,000 mt of cargo was not ready for loading.

London Arbitration 2/25 

FAILURE TO PROVIDE CARGO – REPUDIATORY BREACH – FREIGHT ENTITLEMENT – DAMAGES FOR HIRE – DEFERRED AWARD AMOUNT – MULTIPLE HEARINGS 

This arbitration is the second in a series of proceedings involving the disponent Owners’ claims against the Charterers, who denied liability and counterclaimed for US$544,290.46 or an equal credit against damages awarded to the Owners. This sum comprised US$454,059.38 for unearned advance freight, US$57,208.59 for demurrage, and US$33,022.50 in commission. The claim was in response to the Owners’ claim of repudiatory breach. 
See LA 1/25 and LA 3/25

London Arbitration 3/25 

AMENDED GENCON FORM – FAILURE TO PROVIDE CARGO – EXPERT EVIDENCE – QUANTUM OF DAMAGES – VOYAGE CALCULATION ERROR 
A continuation of LA 1/25 and LA 2/25, this award concludes the proceedings for Charterer’s failure to deliver cargo under an amended Gencon form.

London Arbitration 6/25 

NYPE 1993 FORM – BREACH OF CLAUSE 8 – DEVIATION FROM PLANNED ROUTE – TURN BACK PROVISIONS – DANGEROUS WEATHER – OFF-HIRE DURING ROUTE DEVIATION

The vessel was chartered from Terneuzen, Netherlands to Jacksonville, FL, under NYPE 1993 terms from a prior charterparty. After redelivery Owners claimed US$119,557.65 for hire and bunker costs. Charterers denied liability, citing the master’s decision to reroute the vessel due to dangerous weather.
lengthening the voyage. The tribunal based the final decision solely on documentary evidence.

London Arbitration 1/90

LAYTIME – ASBATANKVOY – STATUTORY READINESS – NOR WITHOUT COC – NULLITY – ESTOPPEL REJECTED

Owners claimed laytime began at 22:30 on 4 August after NOR was tendered and accepted, but charterers argued the NOR was invalid due to the vessel lacking a U.S. Coast Guard certificate of compliance (COC) at the time.

London Arbitration 19/18

DEMURRAGE – TIME BAR – BROKER AS AGENT – ESTOPPEL – CONSEQUENTIAL DELAY – EQUIPMENT BREAKDOWN – ASBATANKVOY – WITHOUT PREJUDICE
This arbitration concerned a contract of affreightment (COA) for a series of voyages performed by two vessels carrying fuel oil/bitumen mix, chartered on an amended Asbatankvoy form. The dispute arose over unpaid demurrage in relation to eight of 87 total voyages, with the charter containing two relevant time bar provisions—one in Part I requiring demurrage claims and supporting documents within 30 days of discharge, and Clause 40 stipulating a 21-day limit.

O v C – EWHC 2838 – King’s Bench Division, Commercial Court (Sir Nigel Teare) – 8 November 2024

LONDON ARBITRATION – US SANCTIONS – OFAC LICENSE TO SELL CARGO – BREACH OF SANCTIONS – APPEAL TO ENGLISH HIGH COURT UNDER SECTION 44 OF THE ARBITRATION ACT 1996

Charterers entered into a charterparty for a vessel carrying naphtha, but were added to the US OFAC sanctions list the same day, causing the cargo to become subject to US sanctions. Owners, fearing prosecution due to their US connections, terminated the charterparty and obtained an OFAC license to sell the cargo and hold proceeds in a blocked US account. Arbitration was initiated in London, and both parties approached the English High Court for directions on how the sale proceeds should be handled.

Lord Marine Co SA v Vimeksim Srb DOO (The “Lord Hassan”) [2024] EWHC 3305 (Comm) – King’s Bench Division, Commercial Court (Bryan J) – 14 October 2024

SALE OF CARGO – EFFECT OF LIEN – ARBITRATION ACT OF 1996 – PARADIGM CASE – CHARTERER OWNED CARGO – RECEIVER AS OWNERS’ AGENT – FAILURE TO RECEIVE BILL OF LADING

Lord Marine (the Owners) and their vessel, Lord Hassan, entered into a voyage charterparty with Vimeksim (the Charterers) on or before April 12, 2024. By May 18, 11,000 mt of cargo had been loaded at Chornomorsk. Lord Marine issued the bill of lading on a standard Congenform 1994 form, which went on to name AAK, the consignee, as the “Receivers”, despite neither them, nor the Charterers ever receiving it. In error, the freight was categorized as “Prepaid”, despite not being paid at that time, or at all.