Nippon Yusen Kabushiki Kaisha v XCoal Energy & Resources (The “Morphou”) – SMA No. 4518 – 27 February 2026

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AMWELSH – DEMURRAGE – NON PARTICIPATION

Nippon Yusen Kabushiki Kaisha (“NYK”) sought recovery of demurrage of $36,374.61, plus interest, attorneys’ fees, and costs from XCoal Energy & Resources (“XCoal”) under a voyage charter dated June 11, 2024, for the carriage of coal from Norfolk, Virginia to China. The charter incorporated the Amwelsh Charter Party form and rider clauses.

The vessel completed discharge at Pohang, China, on October 22, 2024. Laytime ran for 4 days, 8 hours, and 41 minutes, exceeding the allowed 3 days, 4 hours, and 31 minutes. The resulting demurrage, calculated at $32,500 per day, amounted to $37,307.29, reduced to $36,374.61 after broker commissions. NYK issued a Final Freight Invoice on October 31, 2024, with payment due November 1, 2024. XCoal did not dispute the invoice and repeatedly failed to pay despite agreeing to multiple proposed 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 of default consequences. NYK submitted its Statement of Claim with supporting exhibits, and the proceedings were decided on the basis of NYK’s submissions alone.

The arbitrator found that XCoal had acknowledged liability through prior communications and had clearly breached its financial obligations. NYK was awarded the full demurrage of $36,374.61, interest from the invoice due date to the award, attorneys’ fees and costs, and arbitration fees, bringing the total award to $45,915.41. Payment was to be made within 30 days, with interest resuming thereafter until satisfaction.