Q1 2022. Maritime Digest of Arbitration Awards and Court Rulings

Phoenix Bulk Carriers BVD Ltd v Triorient LLC (The “MV Pretty Lady”) – SMA 4373, 27 Sep 2019

DETENTION – FORCE MAJEURE – DAMAGES – MITIGATION – CANCELLED C/P

When Charterer’s supplier failed to provide its cargo due to Charterer’s attempt to re-negotiate the sale, Charterer was forced to cancel its C/P with the lifting vessel’s owner. Owner then endeavored to mitigate the damages via an internal fixture amongst a rising freight market.

AI Georgis Oil Trading Ltd v AG Shipping & Energy Pte Ltd (The “Marquessa”) – QBD (Comm Ct) (Henshaw J) [2021] EWHC 2319 (Comm) – 17 August 2021

SHELLTIME 4 – NON-PAYMENT OF DAILY HIRE – REPUDIATORY BREACH –DAMAGES – MITIGATION OF HIRE VS DAMAGES

When charterer failed to pay hire owner considered this a repudiatory breach of the charter and claimed for this hire and also damages covering delays incurred after the breach.

London Arbitration 17/21

BIMCO HEAVYCON 2007 – NOR VALIDITY – NON PAYMENT OF DEMURRAGE, FREIGHT, BUNKERS, PORT COSTS WAR RISKS – COVID – DETENTION – FRUSTRATION OF CHARTER PARTY – LIEN

After non payment of sums by Charterer , Owner exercised a lien on the cargo and drifted the Vessel for 272 days.  Owner claimed for the non-payment plus detention whilst Vessel drifted.

Ardmore MR Pool LLC (Ardmore Shipping) v Orient Source (HK) Ltd. (The “Ardmore Sealancer”) – SMA No. 4372, 22 Jul 2019

ASBATANKVOY – NAMED PORT – NAMED BERTH – Q88 – FOREIGN FLAG RESTRICTION – INVALID NOR – CARGO AVAILABILITY – DEADFREIGHT – DEMURRAGE – ADDRESS COMMISSION

When Charterer was either unable to provide a cargo or Vessel was not allowed admittance to the load port due to its flag, Owner cancelled the charter party and claimed for deadfreight and demurrage. It was also noted that the Vessel may have tendered a premature NOR from just outside the load port.

MUR Shipping BV v Cathagrow International Ltd. (The “African Jay”) – SMA No. 4371, 15 Jul 2019

BEIZAI 1991 – EQUIPMENT FAILURE – UNION SAFETY INSPECTION FAILURE – DEMURRAGE – DAMAGES

When the crane sheaves on the vessel failed the longshoremen’s inspection, time was lost when attempting to resolve the issue with the Owner ultimately choosing to have the sheaves machined.  Owner claimed demurrage and the cost of the machining from Charterer.

London Arbitration 22/19

CHARTERPARTY – ADDITIONAL FREIGHT – DEMURRAGE – LAYTIME – PREMATURE – NOTICE OF READINESS – DELAYS IN CARGO OPERATIONS – SLOW DISCHARGE – “ONCE ON DEMURRAGE, ALWAYS ON DEMURRAGE”

The discharge port for a ship carrying logs was changed after a mutual agreement between the shipowner and charterers. Charges were filed against the charterer for lost time which charterer partially contested basis an alleged premature NOR. The court that oversaw this case awarded the shipowner financial compensation based off of a reduced time that the court saw as fair.

Cargill Incorporated, Ocean Transportation v. Triorient LLC (The “Josco Huizhou”) – SMA No. 4416, 11 Nov 2020

OWNER/CHARTERER – POTENTIAL FORCE MAJEURE – CARGO NOT SUPPLIED – OWNER TERMINATED CHARTER – OWNER CLAIMED BREACH AND REPUDIATION – OWNER AWARD

After awaiting Charterer’s cargo for ~2+ months and not receiving a satisfactory answer as to when it would be provided, Owner terminated the Charter, claiming that the Charterer was in breach and repudiation of the agreement. The Owner then brought a case to arbitration, once the Charterer did not respond to the claims that were submitted to them regarding the incident.

London Arbitration 3/20

NYPE FORM – INTER-CLUB NYPE AGREEMENT (ICA) – CARGO CLAIM – TIME BAR

The tribunal was left to decide if proper notification of an impending cargo claim had been made to meet the requirements of the time bar clause.

Star Tankers, Inc. v Citgo Petroleum Corporation (The “DS Promoter”) – SMA No. 4399, 7 Aug 2020

OWNER/CHARTERER – DEMURRAGE – U.S. SANCTIONS AGAINST VENEZUELA – PARTY RESPONSIBLE FOR OFAC LICENSE – OWNER AWARD

Owner submitted four undisputed invoices to the charterer, regarding a voyage from the U.S. to Venezuela. The Charterer refused to attempt payment of the invoices, contending that an OFAC License may be needed in order to allow the transfer of funds due to sanctions against Venezuela. Arbitrators were asked to determine if an OFAC License was needed, and if so, which party was responsible for acquiring the Licence.