Category: U.S. Maritime Cases

Shipping industry court rulings and arbitration awards under U.S. law.

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27 Aug, 2020

Transunisa Shipping S.A. de. C.V., as voyage Charterer, and Searail de Mexico SA de CV as Supplier – SMA 4379

BOOKING CANCELLATION – DEADFREIGHT – WHETHER CHARTERER CAN PASS DEADFREIGHT COSTS TO SUPPLIER The supplier in question unilaterally canceled the booking agreement with their charterers whilst the vessel was already on approach to the load port. This cancellation was the direct cause of dead freight incurred by the Charterer – which was subsequently passed to the Supplier. The Charterer was later awarded the dead freight, interest, owner’s fees, and arbitration fees.

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9 Dec, 2019

Koyo Kaiun Co. Ltd., as Claimant-Owner of the MT Clarice, MT Amelia, MT Xena and Liquistream Americas Inc. as Respondent – SMA 4347

DEMURRAGE – TIME BAR – DOCUMENTARY REQUIREMENTS – STATEMENT OF FACTS – PORT LOGS – PARTIAL FINAL AWARD Owner claimed demurrage against Charterer, who contended that the claims were time-barred per clauses added by Charterer to the charter fixtures. This partial final award covered three separate demurrage claims that were consolidated into a single proceeding. Koyo Kaiun Co. Ltd. (hereinafter, “Owner”) claimed against Liquistream Americas Inc. (hereinafter, “Charterer”), who contended that the claims were time-barred per the agreed contract. The main dispute of this partial final award was whether the claims are time-barred, and not the specifics of the amount...

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9 Dec, 2019

Norstar Shipping and Trading Ltd., Disponent Owner, and Ravago LM Pte Ltd., Charterer, Under a Voyage Charter Party, dated, October 7, 2016, of the M/T UACC DOHA – SMA 4350

DEADFREIGHT – VOYAGE CHARTER – FORCE MAJEURE – WHETHER CHARTERER LIABLE FOR DEADFREIGHT AFTER FORCE MAJEURE EVENT Owner claimed deadfreight after Charterer was unable to load a complete quantity of cargo at the loading port due to a fire. Charterer contended that the fire at the loading port constituted a force majeure event, and as such they were not liable for deadfreight incurred as a result. Norstar Shipping and Trading Ltd. (hereinafter, “Owner”) claimed for deadfreight amounting to $102,640.28 against Ravago LM Pte Ltd. (hereinafter, “Charterer”). The Owner entered into a space voyage charter on the Asbatankvoy form using the...

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9 Dec, 2019

Odfjell Tankers as Owner and Ravago LM Pte Ltd. as Charterer of the MT BOW TRAJECTORY – SMA 4355

DEMURRAGE – OFF-SPECIFICATION OF CARGO – INERTING SYSTEMS – DELAY TO DISCHARGE CARGO Upon arrival at the first discharge port the cargo was determined to be off-specification. Due to this the Vessel accrued demurrage which the Owner claimed against the Charterer. The Charterer contended that the Owner was liable for the deterioration of the cargo and thus the subsequent delay and demurrage. Odfjell Tankers (hereinafter, “Owner”) entered into a charter party under the Asbatankvoy form with Ravago LM Pte Ltd (hereinafter, “Charterer”) for the transport of 10,000 mt Mono Ethylene Glycol (MEG) on the MT BOW TRAJECTORY (hereinafter, “Vessel”) from...

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9 Dec, 2019

MTM Trading LLC, as Disponent Owner of the MTM SANTOS and Tricon Energy Ltd., as Charterer – SMA 4356

DEMURRAGE – ICE CONDITIONS – SAFE BERTH – ICE CONVOY Owner claimed demurrage from Charterer arising from a delay to proceed to berth due to ice conditions. The delay resulted from the Owner invoking an ice clause in the charter party stating that the Vessel would never be required to follow ice breakers. Charterer contended that the Owner did not exercise this clause reasonably. This arbitration involved MTM Trading LLC (hereinafter, “Owner”) claiming demurrage amounting to $403,943.87 against Tricon Energy Ltd. (hereinafter, “Charterer”). Owner chartered the vessel MTM SANTOS (hereinafter, “Vessel”) under the Asbatankvoy form to ship 15,000 mt of...

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9 Dec, 2019

Macsteel International USA Corp., as voyage charterer, and Inter Merchant Marine Co Ltd., as head owner of the M/V INTER PRIDE – SMA 4360

DEFAULT ON HIRE PAYMENT – FORCE MAJEURE – WRONGFUL ARREST AND ATTACHMENT – OBLIGATION TO PROCEED WITH REASONABLE DISPATCH – DOCTRINE OF FINANCIAL UNSEAWORTHINESS Upon the Charterer’s default on hire payments the Owner terminated the time charter party, which resulted in a delay at the discharge port and subsequent attachment and arrest of the Vessel. The Sub-Charterer claimed damages arising from the delay against the Owner, who counterclaimed for wrongful arrest and attachment of the Vessel. Under a time charter on the NYPE form Inter Merchant Marine Co Ltd (hereinafter, “Inter Merchant”) chartered the M/V INTER PRIDE (hereinafter, “Vessel”) to...

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9 Dec, 2019

J. Lauritzen Bulkers A/S, as Disponent Owner/Claimant, – and – Interoceanic Corp., as Charterer/Respondent – SMA 4368

FORCE MAJEURE – HURRICANE – WHETHER FORCE MAJEURE WAS PREMATURE – LAYCAN – REPUDIATORY BREACH Owner claimed Charterer wrongfully repudiated the charter after Charterer declared force majeure prior to the laycan. J. Lauritzen Bulkers A/S (hereinafter, “Owner”) claimed against Interoceanic Corp. (hereinafter, “Charterer”) for repudiatory breach in contract following Charterer’s declaration of force majeure. The parties entered into a charter on an amended FOSFO form for carriage of a cargo of ammonium sulphate on the TBC PRESTIGE (hereinafter, “Vessel”) from the load port of Pasadena, Texas to ports in Brazil. The loading facility in Pasadena, PCI Nitrogen, was purchased by...

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9 Dec, 2019

Aurora Tankers International Ltd. as Owner of M/T MARITIME LIRA, Claimant and Tricon Energy Ltd. as Charterer and Respondent – SMA 4369

DEMURRAGE – OFF-SPECIFICATION OF CARGO – WHETHER CONTAMINATION ATTRIBUTABLE TO SHORE OPERATIONS OR VESSEL – READINESS TO LOAD When the cargo was found to be off-specification after loading the “first foot” Charterer requested the second foot be loaded to allow for the cargo to blend back to specification. Owner contended the contamination arose from the shore tanks rather than the Vessel. Delays incurred as a result of the testing and surveying process, which resulted in Owner’s claim for demurrage. Charterer countered that time was not to count during the delay as it was attributable to fault of Owner. Aurora Tankers...

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9 Dec, 2019

Caribe Tankers, Ltd. as Disponent Owner of the CARIBE ROSA and Murex LLC, as Charterer – SMA 4370

DEMURRAGE – NO APPEARANCE – PAYMENT OF INTEREST AND ARBITRATION COSTS Owner sought payment of outstanding demurrage amount from Charterer and initiated arbitration proceedings. Charterer failed to participate in the proceedings, but it did submit payment of the outstanding demurrage amount following Owner’s submissions. Owner claimed for interest, attorney’s fees, and arbitration costs against Charterer. Caribe Tankers, Ltd (hereinafter, “Owner”) brought arbitration proceedings against Murex LLC (hereinafter, “Charterer”) over an unpaid demurrage amount totaling $31,119.08. The demurrage charges incurred under two charters, both fixed under Asbatankvoy, and two voyages of the CARIBE ROSA. Owner requested consolidation of the two demurrage...

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3 Apr, 2019

L.R. Mimosa Limited, as Owner – Claimant and Panamax International Shipping Co., as Charterer – Respondent – SMA 4338

DUE DILIGENCE – SAFE PORT SAFE BERTH WARRANTY – OIL SPILL – THIRD PARTY DAMAGES – SINGLE-POINT MOORING BUOY – PARTIAL FINAL AWARD Owner claimed against Charterer for hire and indemnity from a pollution incident during discharging operations. The basis of the Owner’s claim was the Charterer failed to exercise due diligence in nominating a safe berth. This partial final award determined the result of the indemnity claim. nder a time charter party on the Shelltime form with amendments, LR Mimosa Limited (hereinafter, “Owner”) entered into a charter of the M/T MIMOSA (hereinafter, “Vessel”) with Panamax International Shipping Company (hereinafter,...

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