Flota Petrolera Ecuatoriana (FLOPEC) v. BP North America (The “Tiber”) – SMA No. 3778, 2 Apr 2003

ASBATANKVOY — ARBITRATION — FREIGHT DIFFERENTIAL — SUB-CHARTER — Owner Award

Owner began arbitration to recover an unpaid freight differential on a back-to-back charter agreement. The Charterer needed an Ecuadorian flag Vessel in order to discharge in the contracted Ecuadorian port and could only get around this by sub-chartering the Vessel to itself through this contract’s Owner. However, Charterer argues that Flopec was under no risk in the transaction and had no right to claim a freight differential.