| Archives: June 2004

Award N°1099 – Multiple parties and contracts – Applicable law – Grounding – Safe port clause – General average. National laws applicable to the various contracts are not directly prone to govern claims arising out of an event, resolution of those claims must first be found in applying clauses contained in contracts as well as in applying international rules of understanding, flowing from safe port or York & Antwerp Rules common practice. A shoal with no marking buoy renders the contemplated port unsafe. Be it time or voyage charterer as per relevant contracts, the party which guaranteed the safety of the port must bear the financial consequences of the grounding. The claim lodged by the owner of the ship against the cargo receiver and its insurer is acceptable as a general average claim.

Award N°1097 – Demurrage. A charterer is liable to pay the full demurrage bill at discharge port, even though the owner delayed the arrival of the vessel because freight remained unpaid.

Award N° 1101 – Collision – Time-bar – Quantum of damages. When parties entered into a signed agreement providing for a 70/30 split of damages sustained as a result of a collision between a cargo-ship and 2 trawlers engaged in fishing, it is not possible to further claim that the action is time-barred. The arbitration proceedings only deal with the amount of damages to be shared in accordance with the signed agreement.