2022 Maritime Digest of Arbitration Awards and Court Rulings

K Line Pte Ltd v Priminds Shipping (HK) Co Ltd (The“Eternal Bliss”) – QBD (Comm Ct) (Andrew Baker J)[2020] EWHC 2373 (Comm) – 7 September 2020

NORGRAIN – DEMURRAGE – DAMAGES – LIQUIDATED DAMAGES
When vessel was required to wait at anchorage for 31 days due to berth congestion and lack of space for the cargo, the cargo was found to be significantly damaged in the form of mold and caking.  The receiver successfully claimed damages from the owner who in turn claimed it from the charterer.  The charterer claimed owner’s sole recourse was that of demurrage.

FIMBank plc v KCH Shipping Co Ltd (The “Giant Ace”) – QBD (Comm Ct) (Cockerill J) [2020] EWHC 1765 (Comm) – 3 July 2020

ARBITRATION TIME BAR – MISDELIVERY OF CARGO – ARBITRATION ACT 1996 – DEMISE CHARTERER

When the bank alleged misdelivery of cargo basis a lack of bills of lading, the lawyers requested an extension of time for arbitration against the owner rather than the demise charterer. The court was then tasked with determining whether the claimant is entitled to an extension of the arbitration time bar.

EURONAV NV V REPSOL TRADING SA (THE “MARIA”) – QBD (COMM CT) (HENSHAW J) [2021] EWHC 2565 (COMM) – 24 SEPTEMBER 2021

SHELLVOY 6 – DEMURRAGE – TIME BAR – COMPLETION DATE – WHETHER CLAIM TIME-BARRED

On October 23, 2019, The Maria vessel was chartered on a Shellvoy 6 form to carry crude oil from Brazil to different US west coast ports, including Long Beach, California. The issue was if the owners’ claim for US$487K plus interest was time-barred. 

London Arbitration 6/22

NYPE FORM – TIME CHARTER – HOLD CLEANING – OFF HIRE DURING EXTENDED HOLD CLEANING – COVID-19 PANDEMIC – COVID-19 PROTOCOLS – OFF HIRE DUE TO ALLEGED CREW SICKNESS 

Two disputes for off-hire developed on a one time, time charter trip from India to China relating to extended hold cleaning and alleged crew sickness.

London Arbitration 4/22

NYPE FORM – TIME CHARTER – PANDEMIC – COVID-19 PROTOCOLS – OFF HIRE – PUT BACK – DELAY – DEFAULT OF MASTER – BREACH OF CHARTER

A standoff between a vessel and pilot company over owners’ Covid-19 protocols and pilots boarding resulted in a delay to berth of almost nine days. The owners added the lost time to their final account and the charterers filed a counterclaim, citing off-hire and put back.

London Arbitration 14/21

DEMURRAGE – DETENTION – DAMAGES – BUNKERS – QUANTUM MERUIT
The vessel arrived at the port and tendered NOR. Charterers declared discharging was not allowed until berthing. Owner initially claimed demurrage then revised it by way of quantum meruit to include the cost of bunkers consumed.

Ace Quantum Chemical Tankers CV v Nordic Tankers Trading. (MN “Chem Sirius”) – SMA No.4392, 26 July 2020

SPOT CHARTER – PRORATED WAITING TIME – SUSPENDED LAYTIME – DROPPED TENDER
Vessel tendered NOR whilst charterer’s berth was available and after awaiting a short period of time, went to another berth. Thereafter, charterer’s berth was occupied and vessel periodically waited for charterer’s berth and worked berths for other charterers’ accounts. Owner claimed as demurrage those periods of time whilst vessel was awaiting charterer’s berth whilst it was charterer’s position that the root cause of the overall delay in berthing was vessel’s decision to not work charterer’s berth when given the opportunity.

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.