Tagged: Jul/Sep 2009

Dorado Tankers Inc. v. Hess Corp. (The “Eland”) – SMA No. 4027, 4 Mar 2009

ASBATANKVOY -- CARGO SEGREGATION -- WITHIN VESSEL'S NATURAL SEGREGATION ("WVNS") -- VOYAGE ORDERS -- DEADFREIGHT -- STOWAGE -- LOI -- REFUSED TO LOAD -- Owner Award The Panel was asked to determine the Charterer's liabilily where the charter party expressly defines the Vessel’s stowage capacity and the cargo requirement as "Min 38,000 MT, Max 4 grade(s) WVNS" (within Vessel’s natural segregation). Is the Charterer liable for deadfreight if the Owner refuses to load a portion of 2 of the nominated 3 parcels because it would be necessary to load through a single-valve segregation? Is the Charterer liable for deadfreight because they refused to sign Owner’s Letter of Indemnity (relieving Owner of risk of cross-contamination) which would have permitted Owner to load the full nomination? The Panel explains their decision in this award.
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Odfjell Tankers AS v. Royal Petroleum Corp. (The “Bow Power”) – SMA No. 4029, 17 Apr 2009

ASBATANKVOY -- FAILURE TO PROVIDE CARGO -- LOSS OF PROFITS -- FRESHWATER EXPENSE -- Owner Award The Charterer failed to provide any cargo whatsoever, and the Panel determined how to assess Owner’s damages for lost profits. Additionally, the Panel ruled on how to compensate Owners for the Vessel’s long wait at anchorage subsequently requiring her to shift to berth for freshwater.
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Total Ocean Marine Services Inc. v. Seacor Commodity Trading, LLC (The “San Remo II”) – SMA No. 4037, 15 Jun 2009

NORGRAIN -- DEMURRAGE -- NOR TENDERED PRIOR TO LAYDAYS -- HURRICANE -- ACT OF GOD -- FORCE MAJEURE -- Partial Owner Award A hurricane swept through the loadport while the Vessel was awaiting berthing. The Panel was asked to determine the scope of Charterer's liability to the Owner regarding the lengthy waiting period caused by the aftermath.
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Farenco Shipping Co. Ltd. v. Daebo Shipping Co. Ltd. (The “Bremen Max”) – QBD (Comm. Ct.), 11 Nov 2008

NYPE -- DISCHARGE OF CARGO WITHOUT PRESENTATION OF BILLS OF LADING -- MISDELIVERY OF CARGO -- RESPONSIBIILITY FOR PROVISION OF SECURITY TO PREVENT ARREST -- PROPER CONSTRUCTION OF LETTER OF INDEMNITY -- Preliminary Owner Award In a chain of back-to-back charters with sub-Charterers (with identical terms and LOI clause), the Judge decides who is responsible for putting up security to prevent the Vessel’s arrest by the bill of lading holder for alleged non-delivery of the cargo.
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TS Lines Ltd v Delphis NV (The “TS Singapore”) – QBD (Comm. Ct.), 25 Feb 2009

NYPE -- OFF-HIRE -- CHARTERER'S RIGHT TO CANCEL -- WHETHER “COMMON ROUTE” QUALIFIES AS ON-HIRE WHEN VESSEL UNDER OWNER’S ORDERS -- Charterer Award Under a time charter contract, the Vessel incurred damage necessitating transit to a repair port along the same voyage route as the Charterer’s next intended port call. The Judge decides whether that constitutes off-hire, or if the vessel was operating under the Charterer’s instructions.
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Lansat Shipping Co. Ltd. v. Glencore Grain BV (“The Paragon”) – QBD (Comm. Ct.), 25 Mar 2009

NYPE -- LATE REDELIVERY -- ILLEGITIMATE LAST VOYAGE -- PENALTY CLAUSES -- GENUINE PRE-ESTIMATE OF DAMAGES -- Charterer Award This ruling concerns a time charter clause which stipulates a remedy for a vessel’s late redelivery including compensation to the Owner if the market has risen and is calculated commencing a period of 30 days prior to the maximum period date until actual redelivery. The question posed to the Judges was, is that considered a penalty clause and thus illegal under English law?
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IMT Shipping and Chartering GmbH v Chansun Shipping Co. Ltd. (The “Zenovia”) – QBD (Comm. Ct.), 8 Apr 2009

NYPE -- TIME CHARTER -- NOTICE OF VESSEL REDELIVERY -- MEANING OF THE ACRONYM “WP” -- Charterer Award After submitting an approximate notice of redelivery, Charterer revised the date of redelivery in order to complete an additional voyage. Though the revised date still fell within the contractually stated range of delivery, Owner rejected the change and withdrew the Vessel from Charterer's service. Charterer claimed damages, alleging wrongful withdrawal.
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Medtalk Ltd. v. Adam Maritime Corp. (The “Alaska”) – SMA No. 3290, 15 Aug 1996

ASBATANKVOY -- CONOCO WEATHER CLAUSE- CARGO AVAILABILITY -- WEATHER DELAYS -- WAITING TIME -- Owner Award This dispute revolves around the interplay of Asbatankvoy's clauses 6, 8, and 9, as well as whether of not the Conoco Weather Clause applies during periods of bad weather, which occurred while the Vessel was awaiting berthing due to unavailable cargo. In addition to the award, one dissenting arbitrator recontructs the facts in the case and presents his own conclusion.
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Time Bars Through Time

Common within the maritime industry is the inclusion of a time bar clause within the contract; be it a charter or sales contract. The time-bar clause as it relates to demurrage requires timely receipt of a claim oftentimes within 90 days from completion of load or discharge operations, whichever is applicable, else claim is deemed waived. As time has progressed English arbitration awards and court cases and US arbitration awards have given further insight into the role these contracts play within the industry, the proper interpretation of the commonly used requirements and some hints as to how both charterers and owners should phrase the clauses in order to adequately protect themselves. All of this is discussed below.
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