Category: English Maritime Cases

FORCE MAJEURE – “LAWSUIT” DEFINITION – TIME-BARRED CLAIMS – TIME-CLAUSE – AGREEMENTS ON CHARTER – ARBITRATION

In March 2022, a vessel sustained propeller damage on the way to its first load port, leading to the charter party cancellation through force majeure.  Charterers did not initiate arbitration proceedings until over a year later in April 2023. The dispute focused on whether arbitration proceedings were time-barred. Charterers contended that the one-year time bar did not apply due to circumstances surrounding the voyage’s cancellation.  

TIME CHARTER – NYPE 93 FORM – FAILURE TO TENDER NOR FOR FIVE DAYS – DELAY TO TENDER NOR – LIABILITY OF OWNERS FOR DEMURRAGE NOT EARNED UNDER SUB-CHARTER – CLAUSE 8 – NEGLIGENCE OF AGENTS – DEMURRAGE

On a voyage chartered under an amended NYPE 93 form, a dispute arose due to the master’s delayed submission of the Notice of Readiness (NOR), leading sub-charterers to contest the commencement of demurrage. Owners contended that the delay was neither deliberate nor negligent, attributing any loss to negligence on the part of the Charterers’ agents. Charterers argued that the master’s failure constituted a breach of contract and negligence.

APPEAL – US SANCTIONS – CONTRACT OF AFFREIGHTMENT – FORCE MAJEURE AFFECTING DELAY IN LOADING AND DISCHARGE – REASONABLE ENDEAVORS – DOLLAR PAYMENTS REQUIRED BY THE CONTRACT – OFFER TO PAY IN EUROS – OVERCOMING SANCTIONS

MUR Shipping sought to overturn a previous decision by the Court of Appeal by focusing on a force majeure clause in their contract with RTI. MUR invoked force majeure due to US sanctions preventing payments in dollars. The appeal examined contractual clarity, contractual rights, and the application of force majeure clauses.

TIME CHARTER – ANCHORAGE IN MISSISSIPPI – HURRICANE IDA – GROUNDING – 360-DEGREE SWING ANCHOR CHAIN ENTANGLEMENT – TUG ASSISTANCE – DELAYS – OFF-HIRE – UNSAFE ANCHORAGES –INDEMNIFICATION OF OWNERS – CLAUSE 8 OF NYPE FORM – BREACH OF WARRANTY – VESSEL ALWAYS AFLOAT – ALLEGED NEGLIGENCE OF MASTER – HULL FOULING – FRESH OR BRACKISH ANCHORAGE WATER – LATE EVIDENCE.

A vessel was chartered for an 80-90 day one-way trip from the US Gulf to China under an amended NYPE 1946 form with additional clauses. Berthing in New Orleans/Mississippi River was delayed by Hurricane Ida, leading to a 34-day wait at Alliance Anchorage. After loading bulk corn, the vessel sailed on September 27, 2021, and was redelivered in China on December 7, 2021. Arbitration was sought to resolve disputes over final hire accounts, grounding of the vessel, fouling of the hull, and alleged negligence of the master.

SPEED AND CONSUMPTION CLAIM – WEATHER ROUTING COMPANIES’ METHODOLOGIES – VERACITY OF DECK LOG DATA – DEADFREIGHT – SURVEY COSTS AND BANK CHARGES – HONG KONG SEAT

A single-deck geared bulk carrier was chartered to transport nickel ore from the Philippines to China. Owners alleged wrongful deductions by the charterers for underperformance, deadfreight, survey costs, and bank charges and sought US$54,675.21. The arbitration centered on speed and consumption clauses and weather routing methodologies.

BUNKERS ON REDELIVERY – MEANING OF “PRICE AT BOTH ENDS” – EXCEEDING 5 PERCENT ALLOWANCE – OFF-HIRE DUE TO CREW CHANGE – WRONGFUL DEDUCTION REPAID LATE – INTEREST

Owners of a vessel chartered on an amended NYPE 1946 form sought compensation for market rate differences on bunkers at redelivery. The arbitration also dealt with crew changes, off-hire, and time spent on sub-chartering.

DEMURRAGE – BPVOY4 – CLAUSE 13 INDEMNITY – VESSEL FREE OF LEGAL ISSUES – CARGO ON VESSEL ARRESTED – DELAY TO LOAD AT SECOND LOADPORT – INCREASE IN PURCHASING COSTS DUE TO DELAY – INDEMNITY AND WARRANTY CLAUSES – ASSUMPTION OF RESPONSIBILITY BY OWNERS – CAN CHARTERERS’ “GAINS” FROM INTERNAL HEDGING ARRANGEMENTS BE USED TO OFFSET OWNERS’ BREACH OF CHARTER CLAIM – REMOTENESS OF LOSS RULES FOR BREACH OF CONTRACT

Disponent Owners chartered the tanker “Dijilah” from West Africa to China, then faced legal issues over sanction compliance by the commercial operator/owner. Property seizure by financiers caused delays, leading Charterers to pay an extra USD 3.7 million for cargo, but they gained USD 2.9 million internally. Disputes ensued as Owners claimed demurrage charges, countered by Charterers citing losses from the delay.