Category: U.S. Maritime Cases
BEIZAI 1991 – EQUIPMENT FAILURE – UNION SAFETY INSPECTION FAILURE – DEMURRAGE – DAMAGES
When the crane sheaves on the vessel failed the longshoremen’s inspection, time was lost when attempting to resolve the issue with the Owner ultimately choosing to have the sheaves machined. Owner claimed demurrage and the cost of the machining from Charterer.
OWNER/CHARTERER – POTENTIAL FORCE MAJEURE – CARGO NOT SUPPLIED – OWNER TERMINATED CHARTER – OWNER CLAIMED BREACH AND REPUDIATION – OWNER AWARD
After awaiting Charterer’s cargo for ~2+ months and not receiving a satisfactory answer as to when it would be provided, Owner terminated the Charter, claiming that the Charterer was in breach and repudiation of the agreement. The Owner then brought a case to arbitration, once the Charterer did not respond to the claims that were submitted to them regarding the incident.
OWNER/CHARTERER – DEMURRAGE – U.S. SANCTIONS AGAINST VENEZUELA – PARTY RESPONSIBLE FOR OFAC LICENSE – OWNER AWARD
Owner submitted four undisputed invoices to the charterer, regarding a voyage from the U.S. to Venezuela. The Charterer refused to attempt payment of the invoices, contending that an OFAC License may be needed in order to allow the transfer of funds due to sanctions against Venezuela. Arbitrators were asked to determine if an OFAC License was needed, and if so, which party was responsible for acquiring the Licence.
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.
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...
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...
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...
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...
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...
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...
