Linea Maritima del Pacifico SAP.I. de C.V. v Aerovolte SA de C.V., with Cal-lxa Aggregates LLC as Guarantor, (The “Sider Bilbao”) – SMA No. 4497 – 3 February 2025

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This arbitration involves a claim by Linea Maritima del Pacifico SAP.I. de C.V. (“Linea Maritima” or “Owner”), disponent owner of the MV SIDER BILBAO (the “Vessel”), against Aerovolte SA de C.V. (“Aerovolte” or “Charterer”) and Cal-lxa Aggregates LLC (“Cal-lxa” or “Guarantor”) (collectively, “Respondents”), for demurrage in the amount of $328,584.51, plus interest, attorneys’ fees, and costs, under a GENCON charterparty dated May 29, 2023. Between July and September 2023, the SIDER BILBAO completed eight voyages under the Charter. Demurrage incurred over this period totaled $478,398.48, of which Cal-lxa made a partial payment of $149,813.97 on March 13, 2024, leaving an outstanding balance of the aforementioned $328,584.51.

The Charter was set by a Clean Fixture Recap dated May 29, 2023, and executed by Aerovolte, with Cal-lxa named as guarantor. The agreement was performed under the GENCON 1994 form with additional Rider Clauses, and designated New York arbitration under SMA Rules.

In support of its claim, Linea Maritima submitted:

  • The Declaration of Alejandra Canales (Senior General Manager, Naviera Ultranav Chile Limitada), executed September 26, 2024;
  • A copy of the executed Charter;
  • The Clean Fixture Recap;
  • Laytime Calculations, NORs, and SOFs for the voyages under demurrage was incurred;
  • Invoices for the unpaid demurrage;
  • An email dated March 1, 2024 from Cal-lxa’s Legal Advisor confirming Cal-lxa would pay the balance in three installments.

Aerovolte failed to respond to notices or appear during the proceedings despite proper service and opportunity to do so.

Cal-lxa: Though Cal-lxa initially objected to jurisdiction late in the proceedings, the Panel concluded that:

  • Cal-lxa acted as guarantor and made partial payments under the Charter;
  • Its counsel expressly acknowledged Cal-lxa’s liability and commitment to pay;
  • Cal-lxa failed to seek judicial relief to stay or enjoin the arbitration.

Citing Dow Chemical v. S.S. Giovannella D’Amico, 297 F. Supp. 699 (S.D.N.Y. 1969), the Panel held that Cal-lxa’s conduct demonstrated a binding agreement to arbitrate and responsibility under the Charter.

The Panel found that demurrage charges totaling $328,584.51 were properly supported by laytime calculations, NORs, and SOFs. These were uncontested by Respondents.

Pre-award interest was awarded on the unpaid demurrage balance beginning December 1, 2023, at applicable prime rates, amounting to $32,043.74, calculated using the SMA interest calculator.

Claimant sought $14,308.31 in attorneys’ fees and expenses, supported by affidavit and unopposed by Respondents. The Panel found the request reasonable and awarded the full amount. Additionally, Claimant was awarded full reimbursement of the Panel’s fees, having advanced the total in escrow.

Claimant’s application for security in the amount of $450,000 was denied as moot, given the issuance of the Final Award and its enforceability.

Total amount awarded claimant ended up being $394,936.56.