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Commercial Court Louise Glover Commercial Court Louise Glover

Hapag-Lloyd AG v Skyros Maritime Corporation & Anor [2024] EWHC 3139 (Comm) (13 December 2024)

Time Charterers redelivered 2 Vessels some days late. Some months earlier, Owners had entered MOAs for the sale of both Vessels. Arbitrators determined a preliminary issue on the assumptions that (i) the T/Crates had risen substantially since conclusion of the fixtures and (ii) Ownerswould not have re-let after timeous redeliveries but simply delivered to Buyers. The Tribunal found in these circumstances that Owners were entitled to “substantial damages, compensation or other monetary relief”. On appeal, the Court disagreed; in the normal course damages would compensate for loss of opportunity to take advantage of the market rate, but here Owners lost no such opportunity because of the MOAs, so only nominal damages were appropriate.

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London Arbitration Louise Glover London Arbitration Louise Glover

London Arbitration 14/24 (2024) 1173 LMLN 3

Owners claimed some USD4.9m from Charterers in respect of unpaid hire, bunkers and expenses. Charterers (without any specifics) contended that Owners had issued unauthorised B/Ls, had failed (by discharging the carg0) to enforce Charterers’ lien for unpaid freight (having, they suggested, received payment direct from sub-charterers) and sought USD3.6m damages. Responding to Owners’ application for a partial final award, the Tribunal was only willing to award the difference of USD1.3m, on the basis that if Charterers’ claim were made out, Owners would have deprived them of the use of the Vessel by not retaining the cargo on board.

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London Arbitration Lucy Arghyrakis London Arbitration Lucy Arghyrakis

London Arbitration 11/24

On a voyage charter on an ANVOY (amended Synacomex 90) form for the carriage of wheat from Russia to Brazil, charterers denied liability for demurrage and filed a counterclaim for despatch. The dispute arose due to delays at the loading port, where a phytosanitary certificate was delayed due to weather and document issues. Owners claimed that charterers had a 3-hour grace period to provide the documents once loading was completed on Saturday 29th October 2022, after which time counted. The charterers argued that laytime could not begin until 08:00 on October 31st as weekends were excluded and the 3 hours’ grace could only start after the bills of lading were signed. The Tribunal ruled for the owners, confirming that time lost after loading completion counted as if it were laytime, regardless of weekends, awarding the owners their full claim for demurrage plus interest and costs.

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London Arbitration Louise Glover London Arbitration Louise Glover

London Arbitration 10/24 LMLN 1166

Following an initial award of unpaid hire to Owners, the Tribunal ordered Charterers to secure, in the sum of GBP 270,000, Owners’ costs of defending counterclaims, by means of 1st class bank guarantee issued in England. Following requests for variation, the sum was ordered to be deposited with Owners’ solicitors, to be held on escrow terms. Charterers’ solicitors were thereupon dis-instructed, and following a peremptory order served at Charterers’ registered office (and other addresses) remained unsatisfied, the Tribunal, pursuant to s.41(6) of the Act, dismissed Charterers’ counterclaims, directing that Charterers bear their own costs relating to them.

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London Arbitration Marios Chatzigiannis London Arbitration Marios Chatzigiannis

London Arbitration 4/24

Disputes arose under a NYPE T/C providing for “BOR [bunkers on redelivery] to be same as actually on board on delivery”. Finding that the required LSFO was unavailable at the redelivery port, Charterers proposed to replenish with LSMGO instead, which Owners declined quoting technical concerns. The Tribunal upheld Owners’ right to damages, Charterers bearing the risk of LSFO unavailability at the final discharge port. Nor did Owners’ duty to mitigate extend to accepting the non-contractual performance tendered. Damages were based on the shortfall amount, at LSFO prices encountered on the next employment, plus the additional cost of LSMGO necessarily consumed in reaching it.

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London Arbitration Louise Glover London Arbitration Louise Glover

London Arbitration 1/24

A Voyage C/P provided that loading laytime was to cease from 1700 hours before until 0800 after a “public holiday”. Owners disputed the interruption of laytime at Paranagua for the “Corpus Christi” holiday on the grounds that it did not appear in the BIMCO calendar. The Tribunal found that the BIMCO calendar was not definitive on the point and accepted instead Charterers’ evidence (from the Brazilian Embassy in London website) that Corpus Christi was one of the public holidays observed throughout Brazil.

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