Category: U.S. Maritime Cases

Citgo Petroleum Corp. v. Promar Ltd. (The “Promar”) – SMA No. 4063, 15 Jan 2010

ASBATANKVOY -- CARGO CONTAMINATION -- COGSA -- BURDEN OF PROOF -- Owner Award After discovering that one of its cargo was contaminated by another following a simultaneous discharge, Charterer alleged the contamination occurred during discharge due to leakage or a faulty valve lineup onbard the Vessel. In this award, the Panel reconstructs the course of events, sampling procedures and piping systems onboard and ashore to determine if Charterer has met their burden of proof that contamination was the fault of the Vessel.
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Julia Shipping Pte. Ltd. v. CMC Cometals NJ (The “Julia”) – SMA No. 4039, 9 Jul 2009

COMETALS PRO FORMA CP -- SAFE BERTH WARRANTY -- VESSEL SUITABILITY -- BERTH RESTRICTIONS – IMPROPER CANCELLATION -- Owner Award At issue is whether the Charterer improperly canceled the charter party. The fixture stipulated the discharge as "one safe berth" and when the Receiver at the intended berth rejected the Vessel as being unsuitable (taking into consideration the size of the terminal’s grabs relative to the size of the Vessel’s hatch openings), the Charterer canceled the fixture claiming that the Owner failed in providing a suitable vessel thereby frustrating the commercial purpose of the charter.
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Dorado Tankers Inc. v. Hess Corp. (The “Eland”) – SMA No. 4027, 4 Mar 2009

ASBATANKVOY -- CARGO SEGREGATION -- WITHIN VESSEL'S NATURAL SEGREGATION ("WVNS") -- VOYAGE ORDERS -- DEADFREIGHT -- STOWAGE -- LOI -- REFUSED TO LOAD -- Owner Award The Panel was asked to determine the Charterer's liabilily where the charter party expressly defines the Vessel’s stowage capacity and the cargo requirement as "Min 38,000 MT, Max 4 grade(s) WVNS" (within Vessel’s natural segregation). Is the Charterer liable for deadfreight if the Owner refuses to load a portion of 2 of the nominated 3 parcels because it would be necessary to load through a single-valve segregation? Is the Charterer liable for deadfreight because they refused to sign Owner’s Letter of Indemnity (relieving Owner of risk of cross-contamination) which would have permitted Owner to load the full nomination? The Panel explains their decision in this award.
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Odfjell Tankers AS v. Royal Petroleum Corp. (The “Bow Power”) – SMA No. 4029, 17 Apr 2009

ASBATANKVOY -- FAILURE TO PROVIDE CARGO -- LOSS OF PROFITS -- FRESHWATER EXPENSE -- Owner Award The Charterer failed to provide any cargo whatsoever, and the Panel determined how to assess Owner’s damages for lost profits. Additionally, the Panel ruled on how to compensate Owners for the Vessel’s long wait at anchorage subsequently requiring her to shift to berth for freshwater.
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Total Ocean Marine Services Inc. v. Seacor Commodity Trading, LLC (The “San Remo II”) – SMA No. 4037, 15 Jun 2009

NORGRAIN -- DEMURRAGE -- NOR TENDERED PRIOR TO LAYDAYS -- HURRICANE -- ACT OF GOD -- FORCE MAJEURE -- Partial Owner Award A hurricane swept through the loadport while the Vessel was awaiting berthing. The Panel was asked to determine the scope of Charterer's liability to the Owner regarding the lengthy waiting period caused by the aftermath.
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Medtalk Ltd. v. Adam Maritime Corp. (The “Alaska”) – SMA No. 3290, 15 Aug 1996

ASBATANKVOY -- CONOCO WEATHER CLAUSE- CARGO AVAILABILITY -- WEATHER DELAYS -- WAITING TIME -- Owner Award This dispute revolves around the interplay of Asbatankvoy's clauses 6, 8, and 9, as well as whether of not the Conoco Weather Clause applies during periods of bad weather, which occurred while the Vessel was awaiting berthing due to unavailable cargo. In addition to the award, one dissenting arbitrator recontructs the facts in the case and presents his own conclusion.
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TBS Latin America Liner, Ltd. v. CI Corporacion Carbones De La Sabansa SA (The “Ainu Princess”) – SMA No. 4017, 28 Nov 2008

GENCON -- NO RESPONSE TO DEMURRAGE CLAIM OR ARBITRATION PROCEEDINGS -- RULES OF ARBITRATION -- Owner Award The Panel makes several attempts to contact the Charterer for participation in the proceedings, but received no response whatsoever. The Panel examines the demurrage claim at the heart of the award.
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Jo Tankers BV v. Empresa Maritima Americana, Ltd. (The “JO Hegg”) – SMA No. 4019, 19 Dec 2008

ASBATANKVOY -- FAILURE TO PROVIDE CARGO -- CONFIDENTIALITY -- IMPROPER CANCELLATION -- Owner Award While the Vessel was in port awaiting cargo for another charterer, Owner was approached with the opportunity to load another cargo in the interim. The second fixture was quickly made, and Owner re-negotiated their laydays with the first charterer. The second charterer then promptly cancelled the fixture. Owner submitted a claim for lost profits, which the second charterer refuted due to the brevity of the fixture.
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Trammochem v. dow Benelux N.V. and Atofina-Petrofina SA and AP Moeller and Igloo Shipping AS (The “LPG/C Igloo Norse”) – SMA No. 4021, 18 Dec 2007

ASBATANKVOY -- CARGO CONTAMINATION -- BURDEN OF PROOF -- PRIMA FACIE -- DEMURRAGE -- Charterer Award On arrival at the discharge port, the cargo was found to be contaminated and the Receivers refused delivery. Charterer presented a prima facie claim showing that there was no apparent contamination in the cargo as it was delivered to the Vessel. The Panel sorted through a wealth of information to ascertain the source of cargo contamination, and explains the process of discovery.
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Caytrans BBC, LLC v. Agrogen SA de CV (The “Faaborg”) – SMA No. 4025, 27 Feb 2009

GENCON -- NO RESPONSE TO DEMURRAGE CLAIM -- AWAIT CARGO DOCUMENTS -- SHIFT OFF BERTH -- BROKERAGE COMMISSION -- Owner Award Even though the Charterer doesn't repond to the arbitrator's request to participate in the arbitration, the arbitrator looks critically at Owner's demurrage claim and makes revisions to reduce the demurrage amount. A key question in this award is what time counts as used laytime when the Vessel shifts off the berth to await documents at the anchorage prior to departure.
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