2022 Maritime Digest of Arbitration Awards and Court Rulings
NYPE FORM 1946 – BREACH OF CHARTER – PERFORMANCE WARRANTY – SPEED AND CONSUMPTION CLAIM – WEATHER DISCREPANCY – WEATHER ROUTING COMPANY
A single-deck geared bulk carrier was chartered on an NYPE 1946 form for a one-time charter trip to transport soya bean meal (SBM) from Argentina to Cuba. The voyage was estimated to take roughly 55 days. The charterer employed a weather routing company (WRC) to monitor the vessel for the contract period. Based on the WRC data, a performance dispute arose with the charterer claiming $ 78,489.47 off-hire and excessive bunker consumption. The owner asserted the WRC data was not collected nor calculated per charter party provisions.
BP Oil International Ltd v Glencore Energy UK Ltd – Queen’s Bench Division (Commercial Court)  EWHC 499 (Comm) – Moulder J – 9 March 2022
CONTRACT OF SALE – FAILED NEGOTIATIONS – CONCLUSION OF CONTRACT – POOR QUALITY OF CRUDE OIL – DAMAGES – DEMURRAGE – SALE OF GOODS ACT 1979, SECTION 53
In an April 2019 contract of sale for Russian crude oil, Glencore agreed to sell 100,000 mt +/- ten percent to BPOI. Email correspondence between the two companies indicated the contract was confirmed; however, the parties disagreed on whether the governing terms included the Glencore Sales Contract, which specifically required the loading terminal certificate of quality to be conclusive. The cargo was sold and resold multiple times between BPOI and its affiliated companies, and upon final discharge, BPOI sample tests indicated organic chlorides contaminated the cargo. BPOI claimed damages for the loss of cargo value, storage and transportation costs of the contaminated oil, cargo volume losses, and demurrage paid on other vessels due to the delay.
Tricon Energy Ltd v MTM Trading LLC (The “MTM Hong Kong”) – QBD (Comm Ct) (Robin Knowles J)  EWHC 700 (Comm) – 23 March 2020
DEMURRAGE – TIME BAR – FAILURE TO PROVIDE ALL SUPPORTING DOCUMENTS WITHIN 90 DAYS OF DISCHARGE – AMENDED ASBATANKVOY
Tricon Energy contracted the “MTM HONG KONG” under an amended ASBATANKVOY charter to deliver cargo from Antwerp, Belgium, to Houston, Texas. As a result of delays at the load and discharge ports, the owners, MTM Trading, filed a $56K claim for demurrage. Charterer claimed the owner had failed to provide all documentation within the 90-day period, specifically the bills of lading, so the claim was time-barred. The owner took the case to arbitration, and the claim was upheld. Charterer appealed to the High Court.
CONTRACT OF AFFREIGHTMENT – FAILURE TO HONOR MINIMUM QUANTITY OF CARGO CONTRACT – LOSS OF PROFITS – TRANSFERRED LOSS PRINCIPLE
Palmali sought US$1.9 billion in damages from Litasco under a long-term contract of affreightment (COA). Palmali contended the COA gave it exclusive rights to carry oil products for Litasco between multiple ports in the Caspian Sea, Black Sea and the Mediterranean. Further, Palmali asserted the COA guaranteed Litasco would ship a minimum quantity of 400,000 MT (the Minimum Quantity Obligation), with a total monthly volume of 700,000 MT/month.
Laysun Service Co Ltd v Del Monte International GmbH  EWHC 699 (Comm) (Calver J) – 28 March 2022
CHARTERPARTY – CONTRACT OF AFFREIGHTMENT – COA – FORCE MAJEURE – APPEAL AGAINST ARBITRATION AWARD – ARBITRATION ACT 1996, SECTION 69
In December 2017, Del Monte entered into a contract of affreightment (COA) with Laysun to transport refrigerated bananas from the Philippines to Iran. The agreement was for 36 voyages from January 1, 2018 – December 31, 2018. After 17 shipments, Del Monte stopped providing cargos. Layson sought arbitration for Del Monte’s failure to supply the remaining shipment. Del Monte claimed force majeure due to US Sanctions against Iran and the resulting import restrictions. Laysun appealed the arbitration citing error of law under section 69 of the Arbitration Act 1996.