Category: U.S. Maritime Cases

Citgo Petroleum Corp. v. Pulot Enterprises, Inc. (The “Stinice”) – SMA No. 4139, 5 Aug 2011

ASBATANKVOY -- CLAUSE PARAMOUNT -- COGSA -- CARGO CONTAMINATION -- Charterer Award When cargo was found to be contaminated onboard the vessel at the discharge port, Charterer argued that COGSA applied and subsequently attempted to show that the cargo was loaded onboard the Vessel in good condition and discharged in a damaged condition.
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Gretchen Shipping Inc. v. Commodities & Minerals Enterprises, Ltd. (The “Christoffer Oldendorf” renamed “General Piar”) – SMA No. 4140, 16 Aug 2011

BALTIME 1939 -- MASTER OVERWRITING FIGURES ON DEPARTURE DOCUMENTS -- DEPARTURE DELAY WHILE AGENT PREPARES NEW DOCUMENTS -- OFF-HIRE -- Charterer Award Upon completion of loading Master first refused to sign required departure documents before striking through figures and writing in what he considered to be the correct amounts. There was subsequently a 24-hour delay whilst new documents were prepared which the Master signed as presented with his disagreements noted on the bottom. Against Owner’s wishes, Charterer subsequently deducted the 24-hour period from money owed for bunkers.
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Precious Stars Ltd. v. Helena Chartering Inc. and STX Pan Ocean Co. Ltd. (The “Suchada Naree”) – SMA No. 4143, 29 Aug 2011

NYPE 93 -- OFF-HIRE -- EARLY REDELIVERY AND BUNKER LIABILITY -- MISCELLANEOUS EXPENSES -- Partial Owner Award This arbitration dealt with a number of issues under a time charter. Namely, when does hire resume after an off-hire period for drydocking, early redelivery by Charterer, responsibility for bunkers consumed after early redelivery, an alleged off-hire period whilst the Vessel’s cranes were inoperable and finally, the distribution of numerous charges incurred during the time charter.
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Westport Petroleum Inc. v. Kythrea Shipping Co. Ltd. (The “LMZ Artemis”) – SMA No. 4144, 2 Sep 2011

ASBATANKVOY -- CARGO CONTAMINATION -- DELAYED DISCHARGE DUE HIGH HYDROGEN SULFIDE (H2S) VAPORS -- COGSA -- HEATING AND PURGING COSTS -- LOST PROFITS ON MISSED VOYAGE -- Partial Owner Award When a prior cargo apparently contaminated Charterer’s cargo, Charterer claimed for the cost needed to decontaminate it. Owner in turn denied Charterer’s claim and claimed demurrage incurred whilst Charterer was treating the cargo, heating and purging costs and lost profits when a subsequent fixture was cancelled as a result of the delayed discharge.
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Horizon’s Edge Excursions, LLC. v. H. Dewayne Williams (The “Stolt Azalea”) – SMA No. 4012, 19 Sep 2008

ASBATANKVOY -- WHETHER BERTH CONGESTION IS BEYOND CHARTERER’S CONTROL -- NOTICE OF READINESS PRIOR TO FREE PRATIQUE -- PRORATED LAYTIME -- Owner Award Charterer attempted to dispute Owner's demurrage claim on the basis that berth congestion was a condition beyond charterer's control per ASBATANKVOY Clause 6, time cannot commence until the vessel is in free pratique, and time spent simultaneously discharging another charterer's cargo should be prorated.
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Scope Navigation, Inc. v. Standard Tankers Bahamas Ltd. (The “Seaking”) – SMA No. 4104, 17 Dec 2010

EXXONMOBIL VOY 2005 -- INTEREST ON UNDISPUTED DEMURRAGE -- ADVERSE WEATHER -- DEPARTURE DELAY DUE TUGS -- SIGNING DOCUMENTS -- REDELIVERY OF LIGHTERAGE EQUIPMENT AND MOORING MASTER -- Partial Owner Award At issue is whether Charterer is responsible for interest on a late payment of undisputed demurrage, whether weather related delays existed within the context of ExxonMobil VOY2005's Clause 14, whether Charterer or Owner was responsible for the delay in departing berth due to a lack of tugs, whether time ceased at documents onboard or upon signing, and the assessment of time after a transshipment i.e. whether time stops at hoses off or upon the Vessel redelivering the lighterage equipment and mooring master.
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Team Tankers AS v. Lukoil Pan Americas, LLC. (The “Loukas 1”) – SMA No. 4124, 9 May 2011

EXXONMOBIL VOY 2000 -- MISSING ANCHOR -- INTERIM CLASS CERTIFICATE -- SEAWORTHINESS -- SAFE PORT -- DETENTION -- ROLE OF AGENT -- Partial Owner Award At issue is whether the Owner is in breach of the seaworthiness obligation or Charterer failed to nominate a safe port; and, the relevant assessment of demurrage and detention. Just prior to the fixture, Vessel lost 1 of 2 forward anchors. After obtaining class approval to operate with one anchor temporarily, Vessel tendered NOR at Charterer's load port, informed the Vessel's agent of the missing anchor, loaded and proceeded to the disport range of Northern Chile. After waiting several days, Vessel was instructed to the disport but the pilot refused to berth her given the port's two-anchor requirement. After a replacement anchor was fitted the Vessel encountered delays at subsequent discharge ports due to lack of tankage. In addition to demurrage, Owner claimed detention from Vessel's arrival off Chile until berthing at the first discharge berth.
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Canfornav Ltd. v. AMCI Minerals Corp. (The “Garganey”) – SMA No. 4095, 29 Oct 2010

AMWELSH -- DEMURRAGE RESULTING FROM INSUFFICIENT WATER LEVELS -- ALWAYS AFLOAT, ALWAYS ACCESSIBLE -- SHORT LOADING -- Full Owner Award Owner claimed time ran during a period when the Vessel was required to temporarily vacate the berth during loading due to insufficient water levels as the fixture warranted Vessel to load "always afloat". Charterer counterclaimed for short loading when the Vessel departed with less than the warranted “max 21,400 MT in chrts option…”
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Precious Opals Ltd. v. Helena Chartering Inc. (The “Opal Naree”) – SMA No. 4096, 29 Oct 2010

NYPE 93 -- DEFICIENT SPEED -- BUNKER VALUATION -- EARLY REDELIVERY -- PREMIUM HIRE -- OFF-HIRE -- BANK CHARGES -- Partial Owner Award This arbitration resolved a number of different disputes under a time charter. These included the calculation of the deduction for a speed deficiency, Charterer proactively deducting from hire the speed deficiency rather than claiming from Owner as stipulated by the Charter Party, early redelivery and the valuation of bunkers on redelivery, an alleged shortage of IFO during the time charter period, whether Charterer was to pay a premium whilst the Vessel cleaned the holds after the cargo requiring a premium had been discharged, off-hire calculations whilst the Vessel had a crane breakdown yet wherein no loss of time was encountered, excessive address commission being deducted from "hire" paid when redelivering early and finally, insufficient payment by Charterer as a result of “nominal” Bank Charges.
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USS Chartering LLC v. Vitol, Inc. (The “ITB Baltimore”) – SMA No. 4099, 10 Nov 2010

ASBATANKVOY -- WRONGFUL CANCELLATION OF CHARTER PARTY -- PROCEED WITH UTMOST DISPATCH -- ETAs -- CONTRIBUTORY BREACH AND EQUITABLE REMEDY -- Partial Owner Award With a two port load option, San Francisco or Los Angeles, and a strict laycan to lift cargo prior to year-end (to avoid shoreside inventory taxes), Vessel initially commenced sailing in an indirect direction. Eventually, en-route to the U.S. West Coast Charterer nominated SF as the load port only to have the Vessel’s ETA begin slipping. Fearing a late arrival and the loss of the FOB purchased cargo, Charterer directed the Vessel to LA. Given that the intended load port had been changed it becomes apparent that the laycan will be missed whereas, weather permitting, she would have made the laycan had the load port remained SF. Charterer canceled the Charter and Owner subsequently claimed for damages basis an alleged wrongful cancellation.
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