Transportes Maritimos Centroamericanos v. Paper Sea AS (The “Forest Link”) – SMA No. 3745, 25 Jul 2002

NYPE — CARGO — CONTAMINATION — SUBCHARTER — TIME CHARTER — UNSEAWORTHY — NONPERFORMANCE — OFF-HIRE — Partial Owner Award

After repeated incidents of Vessel-caused cargo contamination, few valued shippers would subcharter the Vessel. The Charterers then began arbitration in order to terminate the long-term time charter with the Vessel on the grounds that the Vessel was consistently unseaworthy. The Owners argued that the only response to nonperformance is the off-hire clause, not cancellation.