Union Bulk A/S v Twin Rivers Co., Inc. (The “Agali”) – SMA 4501 – 10 April 2025

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This dispute arose under a voyage charterparty recap dated April 21, 2023, incorporating GENCON and sub-charter terms, between Union Bulk A/S (“Owners”) and Twin Rivers Co., Inc. (“Charterers”), for a single voyage of the M/V AGALI carrying a cargo of aggregates from Kingston, Jamaica to Wilmington, North Carolina, later amended to include Savannah, Georgia as a discharge port for additional freight. The Owners sought to recover outstanding demurrage and freight totaling $279,959.95, together with interest, attorneys’ fees, and arbitration costs.

Twin Rivers did not appear in this proceeding. After multiple attempts at notice, including personal service and email, Union Bulk filed a petition to compel arbitration in the U.S. District Court for the Southern District of New York. On August 6, 2024, Judge Loretta A. Preska issued a Default Judgment compelling arbitration under Clause 12 of the Charter Party and appointed the undersigned as Sole Arbitrator. Union Bulk then submitted its claim, including relevant exhibits and legal authority, and Twin Rivers was directed to respond by March 7, 2025. No response was received, and a final deadline of March 17, 2025 passed without reply.

Following default, Twin Rivers acknowledged the debt on March 26, 2025, citing its inability to afford legal representation due to financial difficulties, and accepted the total amount claimed, including legal and arbitration fees. A Zoom conference on April 2, 2025 resulted in an agreement that this Final Award would be issued, with the parties to subsequently work out a structured payment schedule. The proceeding was formally closed on April 7, 2025, upon receipt of Union Bulk’s affidavit regarding fees and costs.

At the load port of Kingston, the vessel tendered NOR on June 2, 2023 at 00:01, with laytime commencing 12 hours later. The Owners documented substantial delays due to improper cargo trimming and water-laden material, as reflected in the Master’s two Letters of Protest. A total of 10 days, 21 hours, and 38 minutes of laytime was used, against an allowed 1 day, 22 hours, and 50 minutes. Applying the agreed demurrage rate of $13,500 PDPR, the Owners calculated $120,825.00 in demurrage.

At Wilmington, the vessel tendered NOR on June 17, 2023 at 17:00, with laytime starting June 18 at 08:00. Discharge delays due to improper documentation and berth congestion resulted in 7 days, 22 hours, and 55 minutes of demurrage, totaling $107,390.63. At Savannah, NOR was tendered June 28 at 12:00, and laytime began June 29 at 08:00. Delays at this port resulted in an additional 3 days, 17 hours, and 55 minutes of demurrage, totaling $50,578.13. Additional freight of $1,166.19 was also owed for the Savannah amendment. The Final Freight Statement issued by Union Bulk on July 4, 2023 reflected the total claim of $279,959.95.

The Panel finds that the Owners made a prima facie case for demurrage and freight by showing that laytime exceeded contractual allowances at all ports, with NOR properly tendered and accepted without objection. Charterers failed to rebut or establish any valid exception to the accrual of demurrage. Legal authority, including The FRONT SABANG, SMA No. 4197, and, The ERMIS, SMA No. 3554, supports the Owners’ claim. In addition, Twin Rivers breached its contractual obligation to arbitrate in New York, forcing Union Bulk to incur substantial expense in compelling arbitration. Charterers’ failure to appear and subsequent acknowledgment of the debt underscore the validity of the Owners’ claim.

Interest was awarded at the Commercial Prime Rate, running from the date of Union Bulk’s Final Freight Statement, July 4, 2023, through the date of this Award. The Panel also awards Union Bulk full recovery of its reasonable attorneys’ fees and arbitration-related costs, including the capped fee of the Sole Arbitrator. The total awarded to Union Bulk is $352,472.96, comprising $279,959.95 in demurrage and freight, $40,833.89 in interest, $26,679.12 in attorneys’ fees, and $5,000.00 in arbitral fees and expenses.