Category: Featured

Narval Chartering and Trading v Ameropa North America (The “M/V Ida”) – SMA No. 4276, 22 Mar 2016

COMMENCEMENT OF LAYTIME - WHETHER SHINC TERM TRUMPS OFFICE HOURS - DESPATCH After NOR was tendered and loading commenced on a Sunday, the Owner and Charterer disputed when laytime commenced. Owner noted the laytime allowance referenced “shinc” allowing for laytime to commence on Sunday whereas charterer noted NOR was only to be tendered Monday through Friday.
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London Arbitration 11/16

EXTENSIVE DELAY PURSUING CLAIM IN ARBITRATION – WHETHER DELAY INORDINATE AND INEXCUSABLE – WHETHER SETTLEMENT NEGOTIATIONS ONGOING DURING DELAY - WHETHER NEGOTIATIONS CONSTITUTED A STAY OF PROCEEDINGS Respondent requested an arbitration claim be withdrawn citing an inordinate and inexcusable delay in moving forward with proceedings. The claimant countered that the delay was due to both parties agreeing to stay proceedings whilst working towards a settlement.
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London Arbitration 14/16

NYPE TIME CHARTER - LATE PAYMENT AND NON-PAYMENT OF HIRE - WHETHER LATE PAYMENT A REPUDIATORY BREACH - CALCULATION OF DAMAGES - Owner Award The charterer acknowledged its late payments of hire were a breach of the charterparty yet denied that the late payments were a repudiatory breach. In contrast, and despite charterer offering payment proposals, the owner contended charterer’s conduct constituted non-payment rather than late payment and was thus a repudiation of the charter party.
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BPVOY5 Has Arrived…

As of 21 March 2016, BP Shipping Ltd. has released BPVOY5; the long-awaited successor to the 1998 BPVOY4 charter party. There have been quite a few changes made to the 18-year-old boilerplate. Most of these changes, however, are essentially updates to outdated language and none seem to be especially onerous. Here are a few that stuck out to us (both inside demurrage and out).
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Glencore International AG v. PT Tera Logistic Indonesia and Another – QBD (Comm. Ct.) [2016] EWHC 82 (Comm), 29 January 2016

ARBITRATION – COUNTERCLAIM SUBMITTED AS DEFENSE DURING ARBITRATION – QUESTION AS TO WHETHER COUNTERCLAIM TIME BARRED – Charterer Award Four contracts were negotiated between two parties regarding the charter of floating cranes. Later, the owner brought an arbitration case in an attempt to recover detention. With its defense at the arbitration, the charterer counterclaimed for demurrage. The arbitration panel found that the charterer’s counterclaim was time-barred. The charterer appealed.
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London Arbitration 5/16

COA – CARGO CONFISCATED BY GOVERNMENT - WHETHER DEMURRAGE IS OWED BY CHARTERER – WHETHER CHARTERER ENTITLED TO LAYTIME – Owner Award A COA was negotiated for eight shipments of nickel ore. During the second delivery, operations were stopped and the ship, inclusive of cargo loaded, was confiscated due to suspicions that the cargo was illegally mined. After release of the Vessel a couple months later and then the completion of the operation, a few months after the release, the owner claimed that the charterer was liable for demurrage and was not to receive allowed laytime given charterer had failed to load a cargo. The charter rejected this contention and the owner brought the case to arbitration.
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Industry-Accepted NOR Procedure Tested by Oiltanking Texas City

Tendering a valid NOR for Oiltanking Texas City just got a little harder to do thanks to a recent change of policy for the 555,000 cbm storage facility. On Wednesday, 13-Jan-2016 an Oiltanking representative released a new “Oiltanking Texas City’s ‘NOR’ Acceptance Procedure” that is in direct opposition to the current NOR tender policy for the Houston / Texas City area.

Trammochem Asia Pte Ltd. and Trammochem AG v. Desert Orchid Shipping Pte Ltd. (The “LPG/Desert Orchid”) – SMA No. 4253, 10 April 2015

ASBATANKVOY – STS TRANSFER - CONTAMINATED CARGO – HAGUE VISBY & COGSA - BURDEN OF PROOF – DEMURRAGE - FAULT OF THE VESSEL - TIME-BAR – Charterer Award The vessel was loading LPG via a ship-to-ship transfer when it was discovered that the cargo she had loaded was contaminated by moisture. Both the charterer and the owner held each other responsible for the burden of proof. The dispute was over who was liable for the damages due to the contamination and if demurrage, detention and deviation were to be incurred. And if incurred, whether owner’s claims for same were time-barred.
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London Arbitration 13/15

SHELLVOY 5 – PUMP WARRANTY – PERFORMANCE OR CAPABILITY – PUNITIVE - DEMURRAGE – Owner award This dispute revolved around whether the pump warranty was breached during the discharge of crude oil. The owner submitted its demurrage claim with the belief that the pump warranty had been met. Charterer however contended that the vessel had not met its requirements and thus excess pump time should be deducted from time counting.
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Maritime Industry News…In Brief

PANAMA CANAL DRAFT RESTRICTIONS… The Panama Canal Authority has been closely monitoring the water levels of lakes Gatun and Alhajuela in order to determine if draft restrictions are to be needed as a result of an “El Nino” weather event. This weather phenomenon typically results in a reduction in rainfall in the area, causing the water levels of lakes Gatun and Alhajuela to fall below average levels. The Panama Canal has prepared a daily adjusted short and long range forecast in order to predict lake water levels. If it is determined that draft restrictions are necessary the appropriate parties will...
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