Nippon Yusen Kabushiki Kaisha v XCoal Energy & Resources (The “Medi Nagoya”) – SMA No. 4519 – 27 February 2026

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AMWELSH – DEMURRAGE – NON PARTICIPATION

Nippon Yusen Kabushiki Kaisha (“NYK”) sought demurrage of $54,928.39, plus interest, attorneys’ fees, and costs from XCoal Energy & Resources (“XCoal”) under a voyage charter dated July 6, 2024, for the carriage of bulk coal from Baltimore, Maryland to China. The charter incorporated the Amwelsh Charter Party form and rider clauses.

The vessel completed discharge at Rizhao, China, on October 16, 2024. Laytime ran from October 17, totaling 4 days, 18 hours, and 48 minutes, exceeding the allowed 3 days, 6 hours, and 12 minutes, resulting in demurrage of $38,125. The vessel then proceeded to Huanghua, China, where laytime ran from October 27, totaling 1 day, 7 hours, and 20 minutes, against 13 hours and 51 minutes allowed, yielding $18,211.81 in demurrage. After deduction of broker commissions, the net amount due was $54,928.39, invoiced on November 14, 2024, with payment due November 15, 2024. XCoal neither disputed the invoice nor remitted payment despite repeated requests and multiple agreed payment schedules.

NYK initiated arbitration on September 16, 2025, with a sole arbitrator appointed. XCoal failed to respond or participate despite multiple opportunities and warnings that default could result in an adverse award. NYK submitted its Statement of Claim with supporting exhibits, and the proceedings were decided on the basis of NYK’s submissions alone. Prior communications demonstrated that XCoal had acknowledged liability and proposed installment plans, further confirming its breach of financial obligations under the charter.

The arbitrator found that NYK was entitled to recover the demurrage of $54,928.39, plus interest from the invoice due date to the date of the award, and attorneys’ fees and costs in accordance with Section 7 of the Rules. The arbitrator’s fee of $1,500 was to be initially paid by NYK and subsequently recovered from XCoal. The total award was calculated at $66,175.84, comprising demurrage, interest, attorneys’ fees and costs, and arbitration fees. Payment was to be made within 30 days, with interest resuming thereafter until satisfaction or enforcement by judgment.