2026 Maritime Digest of Arbitration Awards and Court Rulings

O v C – EWHC 2838 – King’s Bench Division, Commercial Court (Sir Nigel Teare) – 8 November 2024

LONDON ARBITRATION – US SANCTIONS – OFAC LICENSE TO SELL CARGO – BREACH OF SANCTIONS – APPEAL TO ENGLISH HIGH COURT UNDER SECTION 44 OF THE ARBITRATION ACT 1996

Charterers entered into a charterparty for a vessel carrying naphtha, but were added to the US OFAC sanctions list the same day, causing the cargo to become subject to US sanctions. Owners, fearing prosecution due to their US connections, terminated the charterparty and obtained an OFAC license to sell the cargo and hold proceeds in a blocked US account. Arbitration was initiated in London, and both parties approached the English High Court for directions on how the sale proceeds should be handled.

CITGO Asphalt Ref. Co. v. Frescati Shipping Co. (The “Athos I”) – Supreme Court of the United States, No. 18-565 – 30 March 2020

OIL SPILL – SAFE-BERTH CLAUSE – LIMITATION OF LIABILITY – UNQUALIFIED CLAUSE – STRICT LIABILITY – SAFE VS. UNSAFE BERTH SELECTION – EXPRESS CLAUSE – EXPRESS LIABILITY

In 2004, Frescati Shipping Co. (the Owners) allowed CITGO Asphalt Refining Co. (CARCO) to charter their vessel Athos I. While attempting to dock in Port of Paulsboro, New Jersey, the vessel collided with an abandoned anchor, resulting in a major oil spill in the Delaware River. The arbitration primarily focused on the Charterers’ (CARCO) liability for the spill per the charterparty’s Safe-Berth Clause.

Sea Consortium Pte Ltd and Others v Bengal Tiger Line Pte Ltd and Others [2024] EWHC 3174 (Admlty) – Admiralty Division (Andrew Baker J) – 12 December 2024

LIMITATION OF LIABILITY – DEFINITION OF CHARTERER – DEFINITION OF SHIPOWNER – SLOT CHARTERER – CONTAINERIZED CARGO – VESSEL AND CARGO CASUALTY/LOSS

Killiney Shipping and Sea Consortium (the Charterers) entered into a Bareboat and a Time Charter, respectively with EOS RO (the Owners). Multiple contract agreements existed between the Parties. When a vessel laden with cargo under these multiple contracts caught fire, a limitation ruling was publicized, resulting in subsequent claims. In question was who was considered the charterer and who the shipowner with regard to the losses and liability.

Lord Marine Co SA v Vimeksim Srb DOO (The “Lord Hassan”) [2024] EWHC 3305 (Comm) – King’s Bench Division, Commercial Court (Bryan J) – 14 October 2024

SALE OF CARGO – EFFECT OF LIEN – ARBITRATION ACT OF 1996 – PARADIGM CASE – CHARTERER OWNED CARGO – RECEIVER AS OWNERS’ AGENT – FAILURE TO RECEIVE BILL OF LADING

Lord Marine (the Owners) and their vessel, Lord Hassan, entered into a voyage charterparty with Vimeksim (the Charterers) on or before April 12, 2024. By May 18, 11,000 mt of cargo had been loaded at Chornomorsk. Lord Marine issued the bill of lading on a standard Congenform 1994 form, which went on to name AAK, the consignee, as the “Receivers”, despite neither them, nor the Charterers ever receiving it. In error, the freight was categorized as “Prepaid”, despite not being paid at that time, or at all.

London Arbitration 11/24

DEMURRAGE – ADVERSE WEATHER DELAY – BILLS OF LADING DELAY – CARGO LOAD DISCREPANCY – ANVOY FORM – SYNACOMEX 90 FORM – PHYTOSANITARY CERTIFICATE – DESPATCH – WEEKENDS EXCLUDED FROM LAYTIME – TIME EXCLUDED CLAUSE – DOCUMENTS ALLOWANCE – CUSTOMS CLEARANCE DELAY – DELAYS DURING WEEKENDS
The vessel was chartered for a single voyage transporting wheat between Russia and Brazil. Owners claimed demurrage of US$48,093.75 for time spent awaiting customs clearance over the weekend. Charterers denied liability, claiming this time was exempt from laytime, and filed a counterclaim of US$40,208.33.

London Arbitration 12/24

TIME CHARTER – AMENDED NYPE FORM – UNDERPERFORMANCE – LSMGO DISCREPANCY – ROB FUEL DISCREPANCY – OFF-HIRE VS UNPAID HIRE – CRANE FAILURE – SPEED AND CONSUMPTION METHODOLOGY – WEATHER ROUTING COMPANY REPORTS

A vessel was time chartered under an amended NYPE 1993 form for the transport of paddy rice from Rio Grande to Veracruz. A dispute arose regarding the final hire accounts. Owners claimed US$11,854.31 for unpaid hire. Charterers denied liability, arguing deductions made to the claim were valid, citing underperformance, off-hire for crane failure, and a discrepancy in the LSMGO figures.

Bulk & Metal Transport Pte Ltd v Consolidated Grain and Barge Co. dba Consolidated Terminals and Logistics Company (The “Bi Jia Shan”) – SMA 4478  – 22 May 2024

AMENDED GENCON – HOLD-IN TUGS AND STANDBY PILOTS – DECREASE OF TRANSIT DRAFT – MISSISSIPPI RIVER – RIVER DRAFT RESTRICTIONS – HIGH RIVER ADVISORIES – SAFE NAVIGATION COMMITTEE – MISSISSIPPI RIVER PILOTS – NOBRA – CARROLTON GAUGE – DISPONENT OWNERS – LIEN ON VESSEL
In a dispute between Bulk & Metal Transport Pte. Ltd (Disponent Owners) and Consolidated Grain and Barge Co. d/b/a Consolidated Terminals and Logistics Company (Charterers) Bulk & Metal Transport sought to recover $89,427.58 paid for hold-in tugs and standby pilots during discharge of rock salt at anchorage at Belle Chasse, Louisiana.

London Arbitration 15/24

VOYAGE CANCELLATION – TERMINATION OF CHARTER – BREACH OF CONTRACT– IMPLIED OBLIGATION OF GOOD FAITH – DAMAGES AND MITIGATION – OBTAINING SUBSTITUTE FIXTURE AFTER CANCELLATION – AMENDED GENCON FORM – MISSED CANCELLING DATE – SHIPPER’S CANCELLATION OF VOYAGE – WHETHER CARGO WAS SPECIFIC TO SHIPPERS OR AN AGREED OBLIGATION
A vessel chartered under an amended GENCON form was to transport scrap metal from Venezuela to Turkey. No loading occurred, and the charter was canceled. The dispute centered on Owners’ claim for damages due to the fixture’s cancellation and Charterers’ counter that Owners did not act in good faith to secure substitute employment.

Oslo Caribbean v Bethell’s Trucking – SMA No. 4477 – 14 June 2024

DEMURRAGE – LIEN AGAINST CARGO – EXTENSIVE DELAY – FAILURE TO PROVIDE SAFE BERTH / SAFE PORT – DIVERTED TO ALTERNATE PORT – DAMAGES

When the SEA CARRIER faced extensive delays at Clarence Town port awaiting safe berth / safe anchor, Oslo Caribbean was forced to invoke a lien on Bethell’s cargo and divert the vessel to another port. Bethell’s Trucking filed a counterclaim for damages, contending contract breach and wrongful termination.

Soreidom S.A. v Hansen-Mueller Co. – SMA No. 4474 – 14 March 2024

DEMURRAGE – NAEGA 2 CONTRACT – UNPAID BALANCES ON PREVIOUS VESSELS – REVOKING NOR – REFUSAL OF PAYMENT – MULTIPLE VESSELS ON CREDIT

Soreidom sought to recover $776,202.94 in demurrage for the vessels M/V GANT FLAIR and M/V CENTURY EMERALD chartered under NAEGA 2 contracts with Hansen-Mueller Co. HM disputed its liability for the GANT FLAIR charges and claimed reduced liability for the CENTURY EMERALD charges.