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.