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MOOT CASE
INTERNATIONAL MOOT COMPETITION
ON MARITIME ARBITRATION 2014
POSEIDON SHIPPING LTD.
(CLAIMANTS)
V
GLORIA SHIPPING CO. LTD.
(RESPONDENTS)
Please, note: since the case consists of the the slightly edited documents of the real case, won
by the Law Firm Interlegal at the London Maritime Arbitrators Association, the red color of the
text, as well as the italics or bold in some documents, means additions or modifications of the
documents between the respective Parties.
THIS MOOT CASE WAS PREPARED BY THE LAW FIRM INTERLEGAL BEASED ON THE REAL CASE
RESOLVED AT THE LONDON MARITIME ARBITRATORS ASSOCIATION
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From: 'Trans Maritime'
Sent: 31 march 2011 9:25
To: 'NEWMAR Chartering'
Subject: MV GLORIA
DEAR SIRS
PLEASE FIND HERE BELOW THE CLEAN RECAP OF FIXTURE ASF;
For Mv “Gloria”
For a TCT Med Sea via Red Sea, PG and Far EAST , AAAA always good safe ports/berths..
- Sub stem/chrts bod appl to be lifted till Monday 31.03.2011 COB.
- Account POSEIDON SHIPPINGltd.
- Delivery 1 dlosp sp Marmara atdnshinc.
- Time charter via safe ports/berths/anchorages wi inl within war risk trading warranty and
always excluding war and like zones as declared by
The uno and also countries which form time to time maybe excluded by governing authorities
of vessel’s flag with bulk/general/steel/project/ IMO – Suitable for grap discharge and
bulk cargoes except Grain Cargoes (e.g. Wheat,Barley,Corn) and No AmmoNo Gun or any explosives..
- Duration abt 80-120 days wog agw wp.
- Redelivery dlosp 1 dlosp sp chrrs optn full Med/Black Sea.
- L/c 01-04 April 2011
- Hire usd 3800 nett pdpr inclot pble 15 days in advance.
- C/v/e : usd 1000
- Charterers to pay 5 000.00 usd bonus to owners
- Charterers have the right to weld pad eyes on tank top or hatch covers or
shipboards or weather deck but same to be removed for chrts time
/expenses before redelivery.
- Owners to give daily notices of delivery stating port / eta / present
position.
- In case original bs/l are not available at discharging ports cargo to be
released to receivers against chrts loi signed by the chrts only.
- Charterers option to place supercargo onboard during period of time
charter. there is no accommodation space for additional person will be checked and
advised.
- Vessel to be delivered with about 43 metric tons IFO and about 2
metric tons MDO.
Vessel to be redelivered with about the same quantities as on delivery.
- Otherwise as per charterers c/p proforma based on nype 93.
-Charts to arrange insurance for LOH and K&R on behalf of head owners, and to coinsure
head owners.
- EWRI to be done by owners via their H&M Insurers and will be invoiced to the Charterers
whose cost is about %0,5 of Hull Value which is usd 7.500 per one passage.
KNR+LOH insurances/premiums for current full piracy area declared by insurance co, razor
wire for transit/passage full piracy area on chart’s accnt. costs of any security
team/personnel for passage full piracy area, if required by Charterer’s K&R Insurance,on
charterer’s accnt, BMP3 regulations will be followed by owners/masters
together.
-Charts to arrange insurance for LOH and K&R on behalf of head owners, and to coinsure
head owners.
-Bimco Piracy Clause for T/C 2008 to be incorporated in the C/P.
-if lsd to be performed by crew ,chrtrs to pay bonus crew
-Speed 9,5kt laden/ballast with consumption 4,5 TONS IFO 180 CST + 0,450 MTS Gas Oil
at sea
-Sub C/P Details
Owners to provide following before fixing main terms:
a) Owns, disp owners, managers full style/back ground/owned tnge list,
last 5 cargoes/chrts
b) HMM VALUE
c) Call sign/inmarsat no.
d) Last and next dd/ss date
e) Ex name if any
F) Name of the master / nationality of master and crew
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H) Date and place of last port control inspection and deficiencies/remarks stipulated
thereby
I) Pollution incidents, grounding, collisions within last 12 months
(place, date and details)
K) Pls advise full itinerary abt agent at last disch port
- Owners confirm vessel is equipped with full set of pontoon tweens
- Owns guarantee vsl has clear unobstructed holds and w/out any
pillars/stanchions/bulkheads
- Owns guarantee vsl fully p+i covered throughout voyage
- Owns guarantee vsl is insured by h+m insurers throughout voyage
- Owners confirm that there will not be changes in ownership during the
currency of the voyage
- Owners guarantee that all gears are in working condition and lifting
capacity is as per
certificates
- Owners guarantee that vessel is not blacklisted by Arab boycott league
- Owners guarantee that neither vessel's flag or head/registered owners nor
technical/commercial
or other managers are registered in Cyprus. Also any vessels'
class/conventional docs do not
contain any mentions about Cyprus flag/registry/owners/managers etc.
- Owners confirm that vessel will not be sold for scrap till completion of
the voyage
- Owners confirm that vessel is isps certified
- Owners confirm that either owners or the vessel has not declared general
average w/i last 24 months.
- Guarantee of vessels' gear swl forming part of c/p.
- Owners confirm that vessel's crew licensed to operate vessel's gears
(using full gears swl) in ports included in trading area.
- Owners to provide before fixing main terms copies of following valid
Certificates:
G/A plans
Class stated interim month abd year of built
Loadline certificate
Registry certificate
Safety construction certificate
P+I
H+M
Document of compliance (ISM)
ISPS certificate
Cargo gear certificate
Cargo gear cert for Saudi Arabia
Document of compliance for carriage of dangerous goods.
End.
Pre-Stowage plan also confirmed by the master.
AWAITING CHARTERER’S B.o.D APPROVAL
KIND REGARDS
Chartering / Gulcin Yalcin
E-Mail : chartering@trans.com.tr
: gulcin@trans.com.tr
Dir : +90 216 457 0036
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Code Name: "NYPE 93"
Recommended by:
The Baltic and International Maritime Council (BIMCO)
The Federation of National Associations of
Ship Brokers and Agents (FONASBA)
TIME CHARTER©
New York Produce Exchange Form
Issued by the Association of Ship Brokers and Agents (U. S.A.), Inc.
November 6th, 1913 - Amended October 20th, 1921; August 6th, 1931; October 3rd, 1946;
Revised June 12th, 1981; September 14th 1993.
1 THIS CHARTER PARTY, made and concluded in Istanbul
2 This
31st
day of
March 2011
3 Between Owners of the Vessel described below
4 Gloria Shipping Co.Ltd. Trust House 2, Ronaldine Street Kingstown/St Vincen and
5 Charterers of the Vessel described below
6 “POSEIDON SHIPPING” Ltd.
7 and their agent NEWMAR Shipping , Kolontayevska 2, Office 1, 65036, Odessa/Ukraine
8 on the Charterer’s behalf.
9 Description of Vessel
10 Name
m/v GLORIA
Flag
MOLDOVA
Built 1986 - JAPAN
(year).
11 Port and number of Registry
Giurgiulesti
12 Classed
Bulgarian Register of Shipping in Giurgiulesti
13 Deadweight 4727 (Summer DWT) long*/metric* tons (cargo and bunkers, including freshwater and
14 stores not exceeding long*/metric* tons) on a salt water draft of 6,675 m
15 on summer freeboard.
16 Capacity 7.135,47 cubic feet metres grain 6.684,00 cubic feet metres bale space
17 Tonnage 2972 GT/GRT
18 Speed about abt 9,5 knots, fully laden/ballast, in good weather conditions up to and including
19 maximum Force at 2 on the Beaufort wind scale, on a consumption of about 4,5mt IFO180+0,45mt MGO
20 long*/metric* tons at sea including narrow waters/approaches and 0,45mt MGO at port on idle and 1mt
MGO if cargo gears work
21 *Delete as appropriate.
22 * For further description see Appendix "A" (if applicable)
23 1. Duration
24 The Owners agree to let and the Charterers agree to hire the Vessel from the time of delivery for a period
25 of min. 80 days up to 120 days without guarantee, all going well, if weather permits.
26
27
28 within below mentioned trading limits.
29 2. Delivery
30 The Vessel shall be placed at the disposal of the Charterers at arrival first pilot station, any time day
31 or night, Sundays and Holidays included , dlosp at Tuzla - and the Owners to give daily notices of delivery
stating port / eta / present position.
32…………………………………………………………………………………………………………………………
33 The Vessel on her delivery
34 shall be ready to receive cargo with clean-swept holds and tight, staunch, strong and in every way fitted
35 for ordinary cargo service, having water ballast and with sufficient power to operate all cargo-handling
36 gear simultaneously.
37 The Owners shall give the Charterers not less than notice on fixing days notice of expected date of
38 delivery.
39 3. On-Off Hire Survey See Clause 48.
40 Prior to delivery and redelivery the parties shall, unless otherwise agreed, each appoint surveyors, for
their
41 respective accounts, who shall not later than at first loading port/last discharging port respectively,
conduct
42 joint on-hire/off-hire surveys, for the purpose of ascertaining quantity of bunkers on board and the condition
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43 of the Vessel. A single report shall be prepared on each occasion and signed by each surveyor, without
44 prejudice to his right to file a separate report setting forth items upon which the surveyors cannot agree.
45 If either party fails to have a representative attend the survey and sign the joint survey report, such party
46 shall nevertheless be bound for all purposes by the findings in any report prepared by the other party.
47 On-hire survey shall be on Charterers' time and off-hire survey on Owners' time.
48 4. Dangerous Cargo/Cargo Exclusions See Clause 85
49 (a) The Vessel shall be employed in carrying lawful merchandise excluding any goods of dangerous,
50 injurious, flammable of corrosive mature unless carried in accordance with the requirements or
51 recommendations of the competent authorities of the country of the Vessel's registry and of ports of
52 shipment and discharge and of any intermediate countries or ports through whose waters the Vessel must
53 pass. Without prejudice to the generality of the foregoing, in addition the following are specifically
54 excluded: livestock of any description, nuclear and radioactive materials, No Ammo/Gun or any other
55 explosives also grain cargoes excepted. Always lawful merchandises permitted by Vessel’s Flag/Cargo
56 Certificates
57
58
59
60
61
62
63
64
65 (b) If IMO classified cargo is agreed to be carried, the amount of such cargo shall be limited to
66 tons and the Charterers shall provide the Master with any evidence he may
67 reasonably require to show that the cargo is packaged, labelled, loaded and stowed in accordance with
68 IMO regulations, failing which the Master is entitled to refuse such cargo or, if already loaded, to unload it
69 at the Charterers' risk and expense.
70 5. Trading Limits
71 The Vessel shall be employed in such lawful trades between safe ports/berths/anchorages and safe
places in /out of geo rotation always afloat always accessible
72 within Institute Warranty Limits with in war risk trading warranty and always excluding war and war like
73 zones as declared by the UNO and also Countries which from time to time maybe excluded by Governing
74 authorities of Vessel’s flag with bulk/steels/generals,/projects/ IMO Cargoes as long as vessel
75 certficiate permits ………………………………………………………………………………………excluding
76 as the Charterers shall direct.
77 6. Owners to Provide
78 The Owners shall provide and pay for the insurance of the Vessel, except as otherwise provided, and for
79 all provisions, cabin, deck, engine-room and other necessary stores, including boiler water; shall pay for
80 wages, consular shipping and discharging fees of the crew and charges for port services pertaining to the
81 crew incl. Sanitary and garbage removal; shall maintain the Vessel's class and keep her in a thoroughly
Efficient state in hull, machinery and
82 equipment for and during the service, and have a full complement of officers and crew.
Owners guarantee that ;
- vsl fully p+i covered throughout voyage
- vsl is insured by h+m insurers throughout voyage
- There will not be changes in ownership during the Currency of the voyage.
- All gears are in working condition and lifting
capacity is as per certificates
- Vessel is not blacklisted by Arab boycott league
- Neither vessel's flag or head/registered owners nor
Technical/commercial or other managers are registered in Cyprus. Also any vessels'
class/conventional docs do not contain any mentions about Cyprus flag/registry/owners/managers etc.
- the vessel will not be sold for scrap till completion of
the voyage
- the vessel is isps certified
- Either owners or the vessel has not declared general
average w/i last 24 months.
- Guarantee of vessels' gear swl forming part of c/p.
- Owners confirm that vessel's crew licensed to operate vessel's gears
(Using full gears swl) in ports included in trading area.
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83 7. Charterers to Provide
84 The Charterers, while the Vessel is on hire, shall provide and pay for all the bunkers except as otherwise
85 agreed; shall pay for port charges (including compulsory watchmen and cargo watchmen and compulsory
86 garbage disposal), all communication expenses , Communication/Victualling/Entertainment costs $ 1.000
– lumpsum per month pertaining to the Charterers' business at cost, + Charterer’s to pay $ 5.000 for the
supplies Charts, Pilot Books, crew change etc. needed for Far East Trade. Compulsory pilotages,
87 towages, agencies, commissions, consular charges (except those pertaining to individual crew members
88 or flag of the Vessel), and all other usual expenses except those stated in Clause 6, but when the Vessel
89 puts into a port for causes for which the Vessel is responsible (other than by stress of weather), then all
90 such charges incurred shall be paid by the Owners. Fumigation ordered because of illness of the crew
91 shall be for the Owners' account. Fumigation ordered because of cargoes carried or ports visited while
92 the Vessel is employed under this Charter Party shall be for the Charterers' account All other fumigation
93 shall be for the Charterers' account after the Vessel has been on charter for a continuous period of six
94 months or more.
95 The Charterers shall provide and pay for necessary dunnage and also any extra fittings requisite for a
96 special trade or unusual cargo, but the Owners shall allow them the use of any dunnage / lashing materials
already aboard and if lashing/securing/dunnaging job is performed by the Crew then Charterer will agree with
the
master and pay ponus for the crew
97 the Vessel. Prior to redelivery the Charterers shall remove their dunnage and fittings at their cost and in
98 their time. Charterers have the right to weld pad eyes on tank top or hatch covers or shipboards or
weather deck
but the same to be removed for charterer’s time/expenses before Re-Delivery.
99 8. Performance of Voyages
100 (a) The Master shall perform the voyages with due despatch, and shall render all customary assistance
101 with the Vessel's crew. The Master shall be conversant with the English language and (although
102 appointed by the Owners) shall be under the orders and directions of the Charterers as regards
103 employment and agency; and the Charterers shall perform all cargo handling, including but not limited to
104 loading, stowing, trimming, lashing, securing, dunnaging, unlashing, discharging, and tallying, at their risk
105 and expense, under the supervision of the Master.
106 (b) If the Charterers shall have reasonable cause to be dissatisfied with the conduct of the Master or
107 officers, the Owners shall, on receiving particulars of the complaint, investigate the same, and. If
108 necessary, make a change in the appointments.
109 9. Bunkers See Clause 63
110 (a) The Charterers on delivery, and the Owners on redelivery, shall take over and pay for all fuel and
111 diesel oil remaining on board the Vessel as hereunder. The Vessel shall be delivered with
112 66,35mt IFO 180 long*/metric* tons of fuel oil at the price of $ 645 per ton;
113 14,08 metric tons of diesel oil at the price of $ 935 per ton. The vessel shall
114 be redelivered with about same/sufficient quantity bunker at the price of per ton;
115 tons of diesel oil at the price of per ton.
And the final balance shall be paid by Owners deduct from last hire payment against last price bunker
invoice.
116 * Same tons apply throughout this clause.
117 (b) The Charterers shall supply bunkers of a quality suitable for burning in the Vessel's engines
118 and auxiliaries and which conform to the specification(s) as set out in Appendix A.
119 The Owners reserve their right to make a claim against the Charterers for any damage to the main
engines
120 or the auxiliaries caused by the use of unsuitable fuels or fuels not complying with the agreed
121 specification(s). Additionally, if bunker fuels supplied do not conform to the mutually agreed
122 specification(s) or otherwise prove unsuitable for burning in the Vessel's engines or auxiliaries, the
Owners
123 shall not be held responsible for any reduction in the Vessel's speed performance and/or increased
bunker
124 consumption, nor for any time lost and any other consequences.
All the bunker claims to be settled between owners and bunker suppliers directly, charterers to assist in this
matter, thus remain as per Charterers CP proforma
125 10. Rate of Hire/Redelivery Areas and Notices
126 The Charterers shall pay for the use and hire of the said Vessel at the rate of $ 3800 – nett
Dollars) per day including overtime fifteen days in advance
127 U,S. currency, daily, or $ U.S. currency per ton on the Vessel's total deadweight
128 carrying-capacity, including bunkers and stores, on summer-freeboard, per 30 days,
129 commencing on and from the day of her delivery, as aforesaid, and at and after the same rate for any
part
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130 of a month; hire shall continue until the hour of the day of her redelivery in like good order and condition,
131 ordinary wear and tear excepted, to the Owners (unless Vessel lost) at on dropping last outward sea pilot
132 1 port at Full Mediterranian Sea or Black Sea,in charterer’s option any time day or night Sundays and Holidays
included
133
134 unless otherwise mutually agreed.
135 The Charterers shall give the Owners not less than 10/7/3/2/1 days notice of the Vessel's
136 expected date and probable port of redelivery.
137 For the purpose of hire calculations, the times of delivery, redelivery or termination of charter shall be
138 adjusted to GMT.
139 11. Hire Payment
140 (a) Payment
141 Payment of Hire shall be made so as to be received by the Owners or their designated payee in
142 US Dollars per day pro rata for the whole duration of the charter period. Payments to be free of bank
Charges viz ……………………………………………………………………………………………...
143 …………………………….………………………………………….…………………………………………...
144 ……………………………….………………………………………….…………………………………………
145 in
146 …………………………………………...currency, or in United States Currency, in funds available to the
147 Owners on the due date, every 15 days in advance, and for the last month or part of same the
approximate
148 amount of hire, and should same not cover the actual time, hire shall be paid for the balance day by day
149 as it becomes due, if so required by the Owners. Failing the punctual and regular payment of the hire,
150 or on any fundamental breach whatsoever of this Charter Party, the Owners shall be at liberty to
151 withdraw the Vessel from the service of the Charterers without prejudice to any claims they (the Owners)
152 may otherwise have on the Charterers.
153 At any time after the expiry of the grace period provided in Sub-clause 11 (b) hereunder and while the
154 hire is outstanding, the Owners shall, without prejudice to the liberty to withdraw, be entitled to withhold
155 the performance of any and all of their obligations hereunder and shall have no responsibility whatsoever
156 for any consequences thereof, in respect of which the Charterers hereby indemnify the Owners, and hire
157 shall continue to accrue and any extra expenses resulting from such withholding shall be for the
158 Charterers' account.
159 (b) Grace Period
160 Where there is failure to make punctual and regular payment of hire due to oversight, negligence, errors
161 or omissions on the part of the Charterers or their bankers, the Charterers shall be given by the Owners
162 3 clear banking days (as recognised at the agreed place of payment) written notice to rectify the
163 failure, and when so rectified within those 3 days following the Owners' notice, the payment shall
164 stand as regular and punctual.
165 Failure by the Charterers to pay the hire within 3 days of their receiving the Owners' notice as
166 provided herein, shall entitle the Owners to withdraw as set forth in Sub-clause 11 (a) above.
167 (c) Last Hire Payment
168 Should the Vessel be on her voyage towards port of redelivery at the time the last and/or the penultimate
169 payment of hire is/are due, said payment(s) is/are to be made for such length of time as the Owners and
170 the Charterers may agree upon as being the estimated time necessary to complete the voyage, and
taking
171 into account bunkers actually on board, to be taken over by the Owners and estimated disbursements for
172 the Owners' account before redelivery. Should same not cover the actual time, hire is to be paid for the
173 balance, day by day, as it becomes due. When the Vessel has been redelivered, any difference is to be
174 refunded by the Owners or paid by the Charterers, as the case may be.
175 (d) Cash Advances
176 Cash for the Vessel's ordinary disbursements at any port may be advanced by the Charterers, as
required
177 by the Owners, subject to 2 1/2 percent commission and such advances shall be deducted from the hire.
178 The Charterers, however, shall in no way be responsible for the application of such advances.
179 12. Berths
180 The Vessel shall be loaded and discharged in any safe dock or at any safe berth or safe place that
181 Charterers or their agents may direct, provided the Vessel can safely enter, lie and depart always afloat
182 at any time of tide.
183 13. Spaces Available
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184 (a) The whole reach of the Vessel's holds, decks, and other cargo spaces (not more than she can
185 reasonably and safely stow and carry), also accommodations for supercargo, if carried, shall be at the
186 Charterers' disposal, reserving only proper and sufficient space for the Vessel's officers, crew, tackle,
187 apparel, furniture, provisions, stores and fuel.
188 (b) In the event of deck cargo being carried, the Owners are to be and are hereby indemnified by the
189 Charterers for any loss and/or damage and/or liability of whatsoever nature caused to the Vessel as a
190 result of the carriage of deck cargo and which would not have arisen had deck cargo not been loaded.
191 14. Supercargo and Meals
192 The Charterers are entitled to appoint a supercargo, who shall accompany the Vessel at the Charterers'
193 risk and see that voyages are performed with due despatch. He is to be furnished with free
194 accommodation and same fare as provided for the Master's table, the Charterers paying at the rate of
195 US$8.00 per day. The Owners shall victual pilots and customs officers, and also, when
196 authorised by the Charterers or their agents, shall victual tally clerks, stevedore's foreman, etc.,
197 Charterers paying at the rate of per meal for all such victualling.
Charterer’s option to place supercargo onboard during period of time charter.
198 15. Sailing Orders and Logs
199 The Charterers shall furnish the Master from time to time with all requisite instructions and sailing
200 directions, in writing, in the English language, and the Master shall keep full and correct deck and engine
201 logs of the voyage or voyages, which are to be patent to the Charterers or their agents, and furnish the
202 Charterers, their agents or supercargo, when required, with a true copy of such deck and engine logs,
203 showing the course of the Vessel, distance run and the consumption of bunkers. Any log extracts
204 required by the Charterers shall be in the English language.
205 16. Delivery/Cancelling
206 If required by the Charterers, time shall not commence before 01 st April, 2011 and should the
207 Vessel not be ready for delivery on or before 04th of April, 2011 but not later than 24 hours,
208 the Charterers shall have the option of cancelling this Charter Party.
209 Extension of Cancelling
210 If the Owners warrant that, despite the exercise of due diligence by them, the Vessel will not be ready
211 for delivery by the cancelling date, and provided the Owners are able to state with reasonable certainty
212 the date on which the Vessel will be ready, they may, at the earliest seven days before the Vessel is
213 expected to sail for the port or place of delivery, require the Charterers to declare whether or not they will
214 cancel the Charter Party. Should the Charterers elect not to cancel, or should they fail to reply within two
215 days or by the cancelling date, whichever shall first occur, then the seventh day after the expected date
216 of readiness for delivery as notified by the Owners shall replace the original cancelling date. Should the
217 Vessel be further delayed, the Owners shall be entitled to require further declarations of the Charterers in
218 accordance with this Clause.
219 17. Off Hire
220 In the event of loss of time from deficiency and/or default and/or strike of officers or crew, or deficiency
221 of stores, fire, breakdown of, or damages to hull, machinery or equipment, grounding, detention by the
222 arrest of the Vessel, (unless such arrest is caused by events for which the Charterers, their servants,
223 agents or subcontractors are responsible), or detention by average accidents to the Vessel or cargo
unless
224 resulting from inherent vice, quality or defect of the cargo, drydocking for the purpose of examination or
225 painting bottom,or by any other similar cause whatsoever preventing the full working of the Vessel,the
payment of
226 hire and overtime, if any, shall cease for the time thereby lost. Should the Vessel deviate or put back
227 during a voyage, contrary to the orders or directions of the Charterers, for any reason other than accident
228 to the cargo or where permitted in lines 257 to 258 hereunder, the hire is to be suspended from the time
229 of her deviating or putting back until she is again in the same or equidistant position from the destination
230 and the voyage resumed therefrom. All bunkers used by the Vessel while off hire shall be for the Owners'
231 account. In the event of the Vessel being driven into port or to anchorage through stress of weather,
232 trading to shallow harbors or to rivers or ports with bars, any detention of the Vessel and/or expenses
233 resulting from such detention shall be for the Charterers' account. If upon the voyage the speed be
234 reduced by defect in, or breakdown of, any part of her hull, machinery or equipment, the time so lost, and
235 the cost of any extra bunkers consumed in consequence thereof, and all extra proven expenses may be
236 deducted from the hire same as loss of time related to speed decrease.
237 18. Sublet
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238 Unless otherwise agreed, the Charterers shall have the liberty to sublet the Vessel for all or any part of
239 The time covered by this Charter Party, but the Charterers remain responsible for the fulfilment of this
240 Charter Party.
241 19. Drydocking
242 The Vessel was last drydocked
243 *(a) The Owners shall have the option to place the Vessel in drydock during the currency of this Charter
244 at a convenient time and place, to be mutually agreed upon between the Owners and the Charterers, for
245 bottom cleaning and painting and/or repair as required by class or dictated by circumstances.
246 *(b} Except in case of emergency no drydocking shall take place during the currency of this Charter
247 Party.
248 * Delete as appropriate
249 20. Total Loss
250 Should the Vessel be lost, money paid in advance and not earned (reckoning from the date of loss or
251 being last heard of) shall be returned to the Charterers at once.
252 21. Exceptions
253 The act of God, enemies, fire, restraint of princes, rulers and people, and all dangers and accidents of
the
254 seas, rivers, machinery, boilers, and navigation, and errors of navigation throughout this Charter, always
255 mutually excepted.
259 23. Liens
260 The Owners shall have a lien upon all cargoes and all sub-freights and/or sub-hire for any amounts due
261 under this Charter Party, including general average contributions, and the Charterers shall have a lien on
262 the Vessel for all monies paid in advance and not earned, and any overpaid hire or excess deposit to be
263 returned at once.
264 The Charterers will not directly or indirectly suffer, nor permit to be continued, any lien or encumbrance,
265 which might have priority over the ""title and interest of the Owners in the Vessel. The Charterers
266 undertake that during the period of this Charter Party, they will not procure any supplies or necessaries
267 or services, including any port expenses and bunkers, on the credit of the Owners or in the Owners' time.
268 24. Salvage
269 All derelicts and salvage shall be for the Owners' and the Charterers' equal benefit after deducting
270 Owners' and Charterers' expenses and crew's proportion.
271 25. General Average
272 General average shall be adjusted according to York-Antwerp Rules 1974. as amended 1990, or any
273 subsequent modification thereof, in London and settled in US Dollars
274 currency.
275 The Charterers shall procure that all bills of lading issued during the currency of the Charter Party will
276 contain a provision to the effect that general average shall be adjusted according to York-Antwerp Rules
277 1974, as amended 1990, or any subsequent modification thereof and will include the "New Jason
278 Clause" as per Clause 31.
279 Time charter hire shall not contribute to general average.
280 26. Navigation
281 Nothing herein stated is to be construed as a demise of the Vessel to the Time Charterers. The Owners
282 shall remain responsible for the navigation of the Vessel, acts of pilots and tug boats, insurance, crew,
283 and all other matters, same as when trading for their own account.
284 27. Cargo Claims
285 Cargo claims as between the Owners and the Charterers shall be settled in accordance with the InterClub
286 New York Produce Exchange Agreement of February 1970, as amended May, 1984, or any subsequent
287 modification or replacement thereof.
288 28. Cargo Gear and Lights
289 The Owners shall maintain the cargo handling gear of the Vessel which is as follows : See vessel
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description
290 Clause 89
291
292
293 providing gear (for all derricks or cranes) capable of lifting capacity as described. The Owners shall also
294 provide on the Vessel for night work lights as on board, but all additional lights over those on board shall
295 be at the Charterers' expense. The Charterers shall have the use of any gear on board the Vessel. If
296 required by the Charterers, the Vessel shall work night and day and all cargo handling gear shall be at
the
297 Charterers' disposal during loading and discharging. In the event of disabled cargo handling gear, or
298 insufficient power to operate the same, the Vessel is to be considered to be off hire to the extent that
299 time is actually lost to the Charterers and the Owners to pay stevedore stand-by charges occasioned
300 thereby, unless such disablement or insufficiency of power is caused by the Charterers' stevedores. If
301 required by the Charterers, the Owners shall bear the cost of hiring shore gear in lieu thereof, in which
302 case the Vessel shall remain on hire.
303 29. Crew Overtime
304 In lieu of any overtime payments to officers and crew for work ordered by the Charterers or their agents,
305 the Charterers shall pay the Owners, concurrently with the hire Nil per month
306 or pro rata. Cable / victualinq / representation US$1,000 per month pro rata.
307 30. Bills of Lading
308 (a) The Master shall sign the bills of lading or waybills for cargo as presented in conformity with mates
309 or tally clerk's receipts. However, the Charterers may sign bills of lading or waybills on behalf of the
310 Master, “provided w/i office hours“, with the Owner's prior written authority, always in conformity with
mates or tally clerk's receipts, any time lost for such confirmation to be for Owner’s account.
311 (b) All bills of lading or waybills shall be without prejudice to this Charter Party and the Charterers shall
312 indemnify the Owners against all consequences or liabilities which may arise from any inconsistency
313 between this Charter Party and any bills of lading or waybills signed by the Charterers or by the Master
314 at their request.
315 (c) Bills of lading covering deck cargo shall be claused: "Shipped on deck at Charterers', Shippers' and
316 Receivers' risk, expense and responsibility, without liability on the part of the Vessel, or her Owners for
317 any loss, damage, expense or delay howsoever caused."
Vessel is responsible for number of pieces.
In case original Bill(s) of Lading are not available at discharging ports cargo to be released to receivers
against
Charterer’s LOI signed by the Charterer’s only.
318 31. Protective Clauses
319 This Charter Party is subject to the following clauses all of which are also to be included in all bills of
lading
320 or waybills issued hereunder:
321 (a) CLAUSE PARAMOUNT
322 This bill of lading shall have effect subject to the provisions of the Carriage of Goods by Sea Act of the
323 United States, the Hague Rules, or the Hague-Visby Rules, as applicable, or such other similar national
324 legislation as may mandatorily apply by virtue of origin or destination of the bills of lading, which shall
325 be deemed to be incorporated herein and nothing herein contained shall be deemed a surrender by the
326 carrier of any of its rights or immunities or an increase of any of its responsibilities or liabilities under said
327 applicable Act. If any term of this bill of lading be repugnant to said applicable Act to any extent, such
328 term shall be void to that extent, but no further."
329 and
330 (b) BOTH-TO-BLAME COLLISION CLAUSE
331 "If the ship comes into collision with another ship as a result of the negligence of the other ship and any
332 act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in
333 the management of the ship, the owners of the goods carried hereunder will indemnify the carrier against
334 all loss or liability to the other or non-carrying ship or her owners insofar as such loss or liability
represents
335 loss of, or damage to, or any claim whatsoever of the owners of said goods, paid or payable by the other
336 or non-carrying ship or her owners to the owners of said goods and set off, recouped or recovered by the
337 other or non-carrying ship or her owners as part of their claim against the carrying ship or carrier.
338 The foregoing provisions shall also apply where the owners, operators or those in charge of any ships or
339 objects other than, or in addition to, the colliding ships or objects are at fault in respect to a collision or
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340 contact."
341 and
342 (c) NEW JASON CLAUSE
343 "In the event of accident, danger, damage or disaster before or after the commencement of the voyage
344 resulting from any cause whatsoever, whether due to negligence or not, for which, or for the
345 consequences of which, the carrier is not responsible, by statute, contract, or otherwise, the goods,
346 shippers, consignees, or owners of the goods shall contribute with the carrier in general average to the
347 payment of any sacrifices, losses, or expenses of a general average nature that may be made or
incurred,
348 and shall pay salvage and special charges incurred in respect of the goods.
349 If a salving ship is owned or operated by the carrier, salvage shall be paid for as fully as if salving ship
350 or ships belonged to strangers. Such deposit as the carrier or his agents may deem sufficient to cover
351 the estimated contribution of the goods and any salvage and special charges thereon shall, if required,
352 be made by the goods, shippers, consignees or owners of the goods to the carrier before delivery."
353 and
354 (d) U.S. TRADE - DRUG CLAUSE
355 "In pursuance of the provisions of the U.S. Anti Drug Abuse Act 1986 or any re-enactment thereof, the
356 Charterers warrant to exercise the highest degree of care and diligence in preventing unmanifested
357 narcotic drugs and marijuana to be loaded or concealed on board the Vessel.
358 Non-compliance with the provisions of this clause shall amount to breach of warranty for consequences
359 of which the Charterers shall be liable and shall hold the Owners, the Master and the crew of the Vessel
360 harmless and shall keep them indemnified against all claims whatsoever which may arise and be made
361 against them individually or jointly. Furthermore, all time lost and all expenses incurred, including fines,
362 as a result of the Charterers' breach of the provisions of this clause shall be for the Charterer's account
363 and the Vessel shall remain on hire.
364 Should the Vessel be arrested as a result of the Charterers' non-compliance with the provisions of this
365 clause, the Charterers shall at their expense take all reasonable steps to secure that within a easonable
366 time the Vessel is released and at their expense put up the bails to secure release of the Vessel.
367 The Owners shall remain responsible for all time lost and all expenses incurred, including fines, in the
368 event that unmanifested narcotic drugs and marijuana are found in the possession or effects of the
369 Vessel's personnel."
370 and
371 (e) WAR CLAUSES
372 "(i) No contraband of war shall be shipped. The Vessel shall not be required, without the consent of the
373 Owners, which shall not be unreasonably withheld, to enter any port or zone which is involved in a state
374 of war. warlike operations, or hostilities, civil strife, insurrection or piracy whether there be a declaration
375 of war or not, where the Vessel, cargo or crew might reasonably be expected to be subject to capture,
376 seizure or arrest, or to a hostile act by a belligerent power (the term "power" meaning any de jure or de
377 facto authority or any purported governmental organisation maintaining naval, military or air forces).
378 (ii) If such consent is given by the Owners, the Charterers will pay the provable additional cost of insuring
379 the Vessel against hull war risks in an amount equal to the value under her ordinary hull policy but not
380 exceeding a valuation of US$2,500,000 . In addition, the Owners may purchase and the
381 Charterers will pay for war risk insurance on ancillary risks such as loss of hire, freight disbursements,
382 total loss, blocking and trapping, etc. If such insurance is not obtainable commercially or through a
383 government program, the Vessel shall not be required to enter or remain at any such port or zone.
384 (iii) In the event of the existence of the conditions described in (i) subsequent to the date of this Charter,
385 or while the Vessel is on hire under this Charter, the Charterers shall, in respect of voyages to any such
386 port or zone assume the provable additional cost of wages and insurance properly incurred in connection
387 with master, officers and crew as a consequence of such war, warlike operations or hostilities.
388 (iv) Any war bonus to officers and crew due to the Vessel's trading or cargo carried shall be for the
389 Charterers' account."
BIMCO CONWARTIME 2004 Cls. to be incorporated in the governing Charter Party. Additionally, Additional
War Risk Insurance, if any, to be Charterer’s account. Payment of the additional war risk premium will be
against
original invoice from Owner’s Insurance broker. EWRI to be done by Owners via their H&M Insurers and will
be invoice
to the Charterer’s whose cost is about %0,5 of Hull Value which is about $ 7.500 for each passage.
390 32. War Cancellation
391 In the event of the outbreak of war (whether there be a declaration of war or not) between any two or
392 more of the following countries:
393
394
395
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396 either the Owners or the Charterers may cancel this Charter Party. Whereupon, the Charterers shall
397 redeliver the Vessel to the Owners in accordance with Clause 10; if she has cargo on board, after
398 discharge thereof at destination, or. if debarred under this Clause from reaching or entering it, at a near
399 open and safe port as directed by the Owners; or, if she has no cargo on board, at the port at which she
400 then is; or, if at sea, at a near open and safe port as directed by the Owners. In all cases hire shall
401 continue to be paid in accordance with Clause 11 and except as aforesaid all other provisions of this
402 Charter Party shall apply until redelivery.
403 33. Ice
404 The Vessel shall not be required to enter or remain in any icebound port or area, nor any port or area
405 where lights or lightships have been or are about to be withdrawn by reason of ice, nor where there is
406 risk that in the ordinary course of things the Vessel will not be able on account of ice to safely enter and
407 remain in the port or area or to get out after having completed loading or discharging. Subject to the
408 Owners' prior approval the Vessel is to follow ice-breakers when reasonably required with regard to her,
409 construction and ice class.
410 34. Requisition
411 Should the Vessel be requisitioned by the government of the Vessel's flag during the period of this
Charter
412 Party, the Vessel shall be deemed to be off hire during the period of such requisition, and any hire paid
413 by the said government in respect of such requisition period shall be retained by the Owners. The period
414 during which the Vessel is on requisition to the said government shall count as part of the period
provided
415 for in this Charter Party.
416 If the period of requisition exceeds about 2 (two) months, either party shall have the option
417 of cancelling this Charter Party and no consequential claim may be made by either party.
418 35. Stevedore Damage
419 Notwithstanding anything contained herein to the contrary, the Charterers shall pay for any and all
420 damage to the Vessel caused by stevedores provided the Master has notified the Charterers and/or their
421 agents in writing as soon as practical but not later than 48 24 hours after any damage is discovered
declared.
Such
422 notice to specify the damage in detail and to invite Charterers to appoint a surveyor to assess the extent
423 of such damage.
424 (a) In case of any and all damage(s) affecting the Vessel's seaworthiness and/or the safety of the crew
425 and/or affecting the trading capabilities of the Vessel, the Charterers shall immediately arrange for
repairs
426 of such damage(s) at their expense and the Vessel is to remain on hire until such repairs are completed
427 and if required passed by the Vessel's classification society.
428 (b) Any and all damage(s) not described under point (a) above shall be repaired at the Charterers'
option,
429 before or after redelivery concurrently with the Owners' work. In such case no hire and/or expenses will
430 be paid to the Owners except and insofar as the time and/or the expenses required for the repairs for
431 which the Charterers are responsible, exceed the time and/or expenses necessary to carry out the
432 Owners' work. For any and all damage(s) not described under point {a) above, a mutually acceptable
independent surveyor to be appointed ( cost to be shared 50 / 50 ) to ascertain cost of repairing
damage(s).
Charterers (at their option) are to repair same before redelivery or pay cost of repairing as per surveyor
findings with final hire statement But Owners are always doing the best to settle the stevedore damage
directly with stevedoring company.
433 36. Cleaning of Holds
434 The Charterers shall provide and pay extra for swooping and/or washing and/or cleaning of holds
between
435 voyages and/or between cargoes provided such work can be undertaken by the crew and is permitted by
436 local regulations, at the rate of par hold.
The Vessel will be re-delivered with clean holds, and all other cleaning will be done by Charterers in their
option
437 In connection with any such operation, the Owners shall not be responsible if the Vessel's holds are not
438 accepted or passed by the port or any other authority. The Charterers shall have the option to re-deliver
439 the Vessel with unclean/upswept holds against a lumpsum payment to Owners of US$1,000 in lieu of
cleaning, lashing/dunnage materials.
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440 37. Taxes
441 Charterers to pay all local, State, National taxes and/or dues assessed on the Vessel or the Owners
442 resulting from the Charterers' orders herein, whether assessed during or after the currency of this
Charter
443 Party including any taxes and/or dues on cargo and/or freights and/or sub-freights and/or hire (excluding
444 taxes levied by the country of the flag of the Vessel or the Owners).
445 38. Charterers' Colors
446 The Charterers shall have the privilege of flying their own house flag and painting the Vessel with their
447 own markings. The Vessel shall be repainted in the Owners' colors before termination of the Charter
448 Party. Cost and time of painting, maintaining and repainting those changes effected by the Charterers
449 shall be for the Charterers' account.
450 39. Laid up Returns
451 The Charterers shall have the benefit of any return insurance premium receivable by the Owners from
their
452 underwriters as and when received from underwriters by reason of the Vessel being in port for a
minimum
453 period of 30 days if on full hire for this period or pro rata for the time actually on hire.
454 40. Documentation
455 The Owners shall provide any documentation relating to the Vessel that may be required to permit the
456 Vessel to trade within the agreed trade limits, including, but not limited to certificates of financial
457 responsibility for oil pollution or equivalent if required by local authorities, provided such oil pollution
certificates are obtainable from the Owners'
458 P & I. club, valid international tonnage certificate, Suez and Panama tonnage certificates, valid certificate
459 of registry and certificates relating to the strength and/or serviceability of the Vessel's gear.
460 41. Stowaways
461 (a) (i) The Charterers warrant to exercise due care and diligence in preventing stowaways in gaining
462 access to the Vessel by means of secreting away in the goods and/or containers snipped by the
463 Charterers.
464 (ii) If, despite the exercise of due care and diligence by the Charterers, stowaways have gained
465 access to the Vessel by means of secreting away in the goods and/or containers shipped by the
466 Charterers, this shall amount to breach of charter for the consequences of which the Charterers
467 shall be liable and shall hold the Owners harmless and shall keep them indemnified against all
468 claims whatsoever which may arise and be made against them. Furthermore, all time lost and all
469 expenses whatsoever and howsoever incurred, including fines, shall be for the Charterers' account
470 and the Vessel shall remain on hire.
471 (iii) Should the Vessel be arrested as a result of the Charterers' breach of charter according to
472 sub-clause (a)(ii) above, the Charterers shall take all reasonable steps to secure that, within a
473 reasonable time, the Vessel is released and at their expense put up bail to secure release of the
474 Vessel.
475 (b) (i) If, despite the exercise of due care and diligence by the Owners, stowaways have gained
476 access to the Vessel by means other than secreting away in the goods and/or containers shipped
477 by the Charterers, all time lost and a!! expenses whatsoever and howsoever incurred, including
478 fines, shall be for the Owners' account and the Vessel shall be off hire.
479 (ii) Should the Vessel be arrested as a result of stowaways having gained access to the Vessel
480 by means other than secreting away in the goods and/or containers shipped by the Charterers,
481 the Owners shall take all reasonable steps to secure that, within a reasonable time, the Vessel
482 is released and at their expense put up bail to secure release of the Vessel.
483 42. Smuggling
484 In the event of smuggling by the Master, Officers and/or crew, the Owners shall bear the cost of any
485 fines, taxes, or imposts levied and the Vessel shall be off hire for any time lost as a result thereof.
486 43. Commissions
487 A commission of 1.25 percent is payable by the Charterers, to TRANS MARITIME, ISTANBUL
489
490
491 on hire earned and paid under this Charter, and also upon any continuation or extension of this Charter.
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492 44. Address Commission
493 An address commission of 2.5 percent is payable to
493
494
495
496 on hire earned and paid under this Charter.
497 45. Arbitration
498 (a) NEW YORK
499 All disputes arising out of this contract shall be arbitrated at Now York in the following manner, and
500 subject to U.S. Law:
501 One Arbitrator is to be appointed by each of the parties hereto and a third by the two co chosen. Their
502 decision or that of any two of them shall be final, and for the purpose of enforcing any award, this
503 agreement may be made a rule of the court. The Arbitrators shall be commercial men, conversant with
504 chipping matters. Such Arbitration is to be conducted in accordance with the rules of the Society of
505 Maritime Arbitrators Inc.
506 For disputes where the total amount claimed by either party does not exceed US $ **
507 the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society
508 of Maritime Arbitrators Inc.
509 (b) LONDON
510 All disputes arising out of this contract shall be arbitrated at London and, unless the parties agree
511 forthwith on a single Arbitrator, be referred to the final arbitrament of two Arbitrators carrying on business
512 in London who shall be members of the Baltic Mercantile & Shipping Exchange and engaged in
Shipping,
513 one to be appointed by each of the parties, with power to such Arbitrators to appoint an Umpire. No
514 award shall be questioned or invalidated on the ground that any of the Arbitrators is not qualified as
515 above, unless objection to his action be taken before the award is made. Any dispute arising hereunder
516 shall be governed by English Law.
517 For disputes where the total amount claimed by either party does not exceed US $ 50,000 **
518 the arbitration shall be conducted in accordance with the Small Claims Procedure of the London
Maritime
519 Arbitrators Association.
520 * Delete para (a) or (b) as appropriate
521 ** Where no figure is supplied in the blank space this provision only shall be void but the other provisions
522 of this clause shall have full force and remain in effect.
523 If mutually agreed, clauses 46 to 89 , both inclusive, as attached hereto are fully
524 incorporated in this Charter Party.
525 APPENDIX "A"
526 To Charter Party dated
527 Between Owners
528 and POSEIDON SHIPPING LTD. Charterers
529
530 Further details of the Vessel : See Clause 89
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ADDITIONAL RIDER CLAUSES
To M/V GLORIA CHARTER PARTY DATED 31st of MARCH 2011
========
46. Owners to give daily notices to telex: . Owners also to keep Charterers closely advised of the vessel's itinerary and
inform Charterers as soon as possible of any change in the itinerary or expected time of delivery.
47. DELIVERY
The vessel on her delivery is to be ready in all respects to receive cargo with all holds grain cleaned, clean-swept, free of
loose rust, scale and from infestation and tight, staunch, strong, and in every way fitted for ordinary cargo service. In the
event that extra cleaning is required, the cost and time of such cleaning to be for Owners’ account. Vessel to be off-hire from
time of rejection until ready in all respects to load.
48. Expenses/time for both on hire/off hire Surveys to be shared equally between Owners on Charterers Account.
49. Owners to supply a valid de-rating certificate on delivery of the vessel and same to be kept valid for whole period of
Time-Charter.
50. Cargo battens and dunnage, if on board, to be stowed safely away by crew on deck or into compartments if not required
for cargo to be loaded, before vessel is delivered into the Charter Party. Charterers to give Owners 74 (seventy-four) hours
grace to remove same.
51. INSURANCE
Charterers are to have the benefit of Owners P. & I. Club as far as the rules permit. Owners P. & I. Club is ADREATIC P&I
Club collision with ships, damages to fixed and floating objects also Charterer’s P&I Club including cover for T/C Liability –
ReeseMarine Insurance
52. Charterers to have the benefit of any return insurance premium receivable by Owners from Underwriters (as and when
received from Underwriters) by reason of the vessel being in port a minimum period of thirty (30) days, provided vessel is
on-hire during such period.
53. Any extra war risk insurance above Owners basic premium is to be for Charterers account, but to be no higher than the
lowest relevant Lloyd’s of London rates and to include any rebate. Charts to arrange armed team will be taken on board at
Suez or Hodeidah (alternative) and will stay on board till Abu Dhabi. BIMCO PIRACY 2008 and CONWARTIME 2004 or their
latest updates will be in force during the currency of Charter Party.
54. Owners guarantee that the vessel is covered or shall be covered under full terms for the full value of US$2.5 million for
Hull and Machinery insurance during the whole period of this Charter, and that the vessel is entered into or shall be entered
into a P. & I. Club and shall remain so for the duration of the Charter. Hull and Machinery insurance to be covered with
leading underwriters.
Should either Owners or Charterers ever require reconfirmation of same, the respective party shall, within 24 hours, instruct
their respective underwriters or P. & I. Club to send via telex or fax direct to the requesting party said required confirmation.
55. Cargo claims to be settled in accordance with the Inter-Club New York Produce Exchange Agreement with latest
amendments.
56. PIRACY CLAUSE
Owners consent that the vessel proceeds to or through an area exposed to risk of piracy and owners shall have the liberty:
(1) to take reasonable preventive measures to protect the vessel, her crew and cargo including proceeding in convoy,
adjusting speed or course, as per mschoa orders registering passage via www.mschoa.org. BIMCO Piracy Clause 2008 with
last amendment to be applied.
(2) to comply with the orders, directions or recommendations of underwriters who have the authority to give the same under
the terms of the insurance;
(3) if the vessel proceeds to or through an area where due to risk of piracy additional costs will be incurred, i.e. war extra
insurance to be for Charterers account as per owners underwriters quotation but max reimbursed amount to owners is usd
15,000 per passage for whole insurance (incl ransom, crew bonus, loh, etc., etc.) and for whole duration of charter. any time
lost waiting for convoys, following recommended routing, timing, or increasing speed as per mschoa or taking measures to
minimize risk, shall be for the charterers' account and the vessel shall remain on hire
(4) EWI amount for calling to Iraq, EC African or Red Sea countries should be for account of owners Charterers in case if not
agreed with charterers beforehand. In no event EWI for calling Iraq would be more than usd 1000 per call.
57. OFF-HIRE
In addition to Clause 17 and Clause 28, all direct costs result and/or consequence of cargo gear/grab breakdown including
the items already stated in Clause 17 and Clause 28, to be for Owners account.
When vessel is out of service, due to any cause for a continued period of five (5) days or longer, Owners to give Charterers
not less than three (3) days approximate notice and one (1) day definite notice for re-entering into the Charter. The above
does not release Owners from the obligation to keep Charterers daily informed of the exact nature and progress of repair
work, or any other reason for the off-hire.
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After any off-hire period vessel only be on hire again, on first resumption of work on the same day/or the beginning of the
next day (00:01 hrs local time) Saturday / Sunday / Holidays excluded whichever is earlier. This paragraph only to apply
provided vessel in port.
58. Should the vessel to be boycotted, picketed, black listed or similar incident at any port or place by the shore and/or port
labour and/or other union labour and/or the authorities by reason of the vessels flag and/or condition on which members of
the officers/crew were employed, or by reason of trading of this Charter of this vessel Charterers are entitled to put vessel
off-hire for any time lost by such reason.
59. During the currency of this Charter, should the vessel become unavailable to Charterers as a result of any of Owners
actions or fault, including the items mentioned in Clause 17 and Clause 28, for period exceeding 15 (fifteen) running days or
accumulated up to 15 (fifteen) days, then Charterers shall have the right to cancel this Charter without prejudice to claim
damages for any and/or all consequential whatsoever nature after due notice of 5 (five) working days have been served to
Owners. All vessel's "off-hire" cost to be for Owners account.
60. Charterers shall not to be responsible for any damage to the vessel due to theft and/or pilferage by any third party and/or
the servants of the Charterer.
61. Watchmen for cargo to be for Charterers account while watchmen for ship to be for Owners account.
62. CARGO GEAR
Charterers are allowed to attached cargo handling equipment suitable to vessels cargo gear equipment e.g. lumber frames,
spreader bars, etc, but always compatible to vessels cargo gear and lifting capacities and under Master supervision. All
cargo gear to be fully certificated and correctly marked in accordance with the regulations in force at the various ports of call
under this charter.
63. The Charterers shall not be responsible for loss and/or damage sustained by the vessel or for liability for, or the payment
of any expenses, costs and damage whatsoever, arising through the acts of omissions of pilots, tugboats and/or linesmen
who although they may be engaged by the Charterers shall be deemed to be the servants of the Owners and under their
instructions.
64. Master not to prevent the use of cranes/crane operations groundlessly without technical written explanations supported
with proper documentation.
65. BUNKER CLAUSE
Vessel to be delivered with about 66,35mt IFO 180 and 14,08 metric tons MGO. Vessel to be redelivered with the same
quantities as on delivery. US$645 per metric ton for IFO and US$935 per metric ton for MDO. Value of bunkers on delivery
payable with first hire. Charterers to deduct the value of bunkers on redelivery from last sufficient hire payment against last
price bunker invoice.
Bunkers supplied to the vessel always to conform to ISO 8217 for IFO: 180 CST RME 25 and for MDO: DMB or DMA.
66. STRIKE
In the event that the vessel is delayed by strikes, lockouts, labour stoppages or any other difficulties due to the flag or
ownership of the vessel, such time lost to be for Owners account including bunker fuel consumed during such periods.
Nevertheless, if Charterers trade vessel to countries where it is common knowledge that such boycotts are in being or were
recently in being or are expected to be imposed then the above not to apply and vessel to remain on full hire. The crew are
employed under I.T.F. conditions or equivalent.
If the vessel should be detained by reason of the terms and conditions on which the members of the crew are employed, or
as otherwise mentioned in Clause 17, Owners shall take very step which are required to ensure the continued working of the
vessel. Hire shall cease from the time lost and all cost shall be Owners account.
67. Phrases and words used throughout this Charter Party to be construed in accordance with BIMCO definitions.
68. The Master shall sign the bills of lading for cargo as presented in conformity with mates or tally clerk's receipts. However,
the Charterers and / or their agent are authorised to sign bills of lading on behalf of Master if same requested by Shippers
but always in conformity with mate’s or tally clerk's receipts Master to advise Charterers directly of any notation made on
mate’s receipt.
All bills of lading shall be without prejudice to this Charter Party and the Charterers shall indemnify the Owners against all
consequences or liabilities which may arise from any inconsistency between mate’s or tally clerk's receipts and any bills of
lading signed by the Charterers or by the Master at their request. Charterers may use their own bill of lading form.
Bills of lading covering deck cargo shall be claused: "Shipped on deck at Charterers', Shippers' and Receivers' risk, expense
and responsibility, without liability on the part of the Vessel, or her Owners for any loss, damage, expense or delay
howsoever caused." All bills of lading issued under this Charter Party shall incorporate all terms, conditions, exceptions and
clauses of this Charter Party.
Vessel is responsible for number of pieces.
69. HIRE
Time-charter hire to include all lubricating oil and overtime expenses for nautical matters such as;
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A) opening and closing of hatches in preparation for loading and/or discharge.
B) shifting and operation and docking.
C) bunkering except Owners replenishments.
D) maintaining power while loading and/or discharging and care of winches / cranes / derricks.
E) supervision of loading and/or discharging.
F) preparing vessels hatches and cargo gear as much as possible prior to arrival in ports or commencement of operations.
G) tally on board the vessel.
H) removing and replacing beams in preparation of loading and / or discharge;
I) crew including one (1) officer supervising cargo operations on deck during loading and discharging.
Above services to be rendered provided port regulations permit.
As far as practically possible vessels’ crew to perform loading and discharging operations, securing, dunnaging, lashing,
unlashing according to mutual agreement between
Charterers and Master of the vessel. However rates for mentioned above works agreed not to exceed official ITF rates.
70. REDELIVERY
In addition to clause 11 (c), Charterers are at liberty to deduct estimated Owners disbursements and estimated value of
bunkers on redelivery from the last hire payment. Any balance due to Owners/Charterers to be refunded within seven (7)
days of redelivery of the vessel. No advances for outlays for Owners account to be made and subsequently deducted from
hire unless prior approval required from and granted by Owners.
If the vessel is redelivered by the Charterers to the Owners after the expiry of the charterparty duration, the Charterers’
liability in damages for the overrun period shall not be more than the difference of any between the rate of hire payable
under this charter and the market rate during the overrun period.
71. For purposes of conducting a draft survey the vessel must have on board certified calibrated scales for vessel's tanks
double bottoms and capacity plan, displacement scale and deadweight scale and any other documents and information
necessary for conducting an accurate draft survey.
72. CERTIFICATES
Owners guarantee that vessel possesses valid International Measurement Certificates required by the authorities in any
country to which the vessel may trade. Owners undertake to ensure that all certificates, notices, reports, survey reports,
classification reports must either be in English or have officially translated into English within 1 (one) week after Charterers
making such a request Whenever required, the Master must bring the vessel into even trim to ensure correct bunker
sounding. Without any further consent from Owners and during the whole currency of this charter, the Charterers and/or
their agents(s) shall have free and unlimited access to inspect and/or survey and/or take photographs of the whole and/or
part of the vessel, including bilge's, holds, hatches/hatch covers, cargo gear engine room and also to all the tanks, including
but not limited to, bunker-lube oil tanks sludge, ballast and fresh water tanks. The Charterers and/or their agent(s) and/or
their surveyors) to have free and unlimited access to the vessel's deck and engine room log books, tank plans, classification
records, calibration scales, all vessel's certification including cargo gear certificates, and/or plans as required whether any of
the above are on board or a shore and be allowed to make copies of the originals.
73. Owners to supply valid certificates including Oil Pollution certificates, for the agreed trading limits and such certificates to
be maintained throughout the period of the charter. Any consequences due to vessel lacking all necessary certificates or if
same should be outdated, to be for Owners risk and expense.
74. The vessel has valid Suez and Panama Canal letter of registry and is keep fitted for Suez/Panama Canal passage
during the currency of this time-charter. Charterers to have full access to all vessel's classification records/certificates with
prior approval of Owners.
75. Owners expressly confirm, agree and undertake that the vessel is suitable for fumigation of cargo on board in port(s)
and/or place(s) en route and/or in-transit and will allow same to be carried out provided strictly in accordance with I.M.O.
recommendations on the safe use of pesticides in ships.
76. The Master shall always remain responsible for the seaworthiness of the vessel for sailing between ports and shall
supervise stowage of the cargo as well as instruct one of his officers to superwise all loading, handling and discharge of the
cargo, and he is to furnish Charterers with stowage plan as well as tally slips and other documents customarily used.
77. PERFORMANCE CLAUSE
If required by Charterers', Ocean Routes or equivalent during the currency of this Charter Party will recommend route to be
followed by Master at his discretion. In this respect, Master is to report vessel's noon position by latitude and longitude every
2 days to AWT including mileage covered. Any stoppage or delays for any cause apart from exceptional weather conditions
to be reported. Master to inform Charterers if unable to receive AWT instructions. However, it is understood that AWT
routing recommendations will not constitute a basis for a possible performance claim against the vessel.Should the vessel's
performance fall short of the speed warranty as prescription in Clause 89 and appendix 'A' of this Charter Party, Charterers
shall have the right to present a documented speed /consumption claim.Evidence of weather conditions shall be taken from
both the Vessel deck logs and the routing company's reports. In the event of a consistent discrepancy between the deck
logs and weather routing, another independent weather report shall be taken as ruling.
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78. Should the vessel be arrested during the currency of this Charter Party it the suit of any person having or purporting to
have a claim against or any interest, hire under this Charter Party shall not be payable in respect of actual time lost whilst
the vessel remains under arrest or remains unemployed as the result of such arrest, and the Owners shall reimburse to the
Charterers any expenditure which may occur under this Charter Party in respect of any period during which by virtue of the
operation of the clause, no hire is payable.
This clause shall be inoperative should the arrest be caused through any omission of the Charterers or their agents and/or
servants.
79. Owners guarantee vessel is not black listed by CIS and Vietnam Authority and will not be arrested in CIS or Vietnamese
ports.
80. Before hire payments are made, Charterers in their option may elect to deduct from all or some hire payments all or part
of the commissions due under clause 43 and/or 44. Charterers undertake to keep Owners fully informed if such auction were
made.
81. If, during the currency of this Charter Party, there is any deviation during the course of the voyage or any loss of time
whatsoever caused by sickness of, or accident to crew of any person on board (other than supercargo travelling under
Charterer's auspices), hire shall not be paid for the time so lost and the cost of extra fuel consumed and any other extra
expense incurred shall be for Owners’ account. Officers and crew to comply with vaccination and sanitary regulations in all
ports of call and corresponding certificates to be available on board otherwise any detention and fines resulting from not
having these certificates on board to be for Owners account.
82. Charterers and Owners exempt each other from responsibility for non-performance of this Charter when such nonperformance is caused by Acts of God, Governmental or Institutional restrictions or any other cause beyond the control of
either party.
83. Trading Exclusions
With trading always within I.W.L. excluding, Israel, Turkish occupied Cyprus, Zaire, Liberia, Sierra Leone, Somalia,
Kampuchea, Ethiopia and U.N. sanctioned countries. Vessel not to sail directly from Taiwan to the P.R.C. or vice versa.
85. In case original Bills of Lading are not available at discharge port(s) cargo to be released to the receivers against
scanned copy of Charterers Letter of Indemnity as per Owners standard P and I Club wording signed by the Charterers only.
86. Owners responsible to send daily noon time preliminary notice of delivery including obligatory 15/10/7/5 days and final
notices 3/2/1 days with 12/6 hours as well.
87. Charterers may deduct estimated re-delivery bunker from any subsequent hire payment(s) with formal notice to owners
same as off-hire and speed underperformance claims provided that they are supported with ocean routes company.
charterers to deduct the value of bunkers at prices last paid by the charterers: ifo - usd / mgo - usd. In case if bunker
deducted to be more than total hire paid charterers may not to pay it with first hire and will therefore not deduct it from last
one. “ In case any claim occure , Charterers to discuss same with owners and then deduct from hire upon having owner’s
approval.
88. Vessel always to have on board ifo/mgo quantities able vessel safely to arrive at 1st bunkering port after delivery.
89. Meaning "about" stipulates 0.2 knots for speed downward and 3% mool for consumption. for redelivery quantities "about"
means 10% mool
90. Master has no right neither to order not to make any excessive lashing/dunnage, unless proven by calculations.
Charterers have the right to appoint an independent surveyor to re-check such Master’s calculations. Such independent
surveyor’s decision to prevail.
91. Master has no rights to make any supplies/deliveries from agents/suppliers for the crew/vessel unless it is approved by
charterers and preliminary discussed with them
92. Owns / master to use due diligence in intermediate cleaning holds, if so requested by Charterers and master to be
responsible should the vsl failed inspection due to residue of the previous cargo(es).
93. Owners confirm vessel has standard lashing materials on board which charterers may use at their own decision. in case
if charterers supplied vessel with additional lashing/securing dunnaging material which re-mailed on board upon/after
redelivery they will become the property of the owners but the charterers will deductthe cost of such material from balance
due to owners/last hire payment.
94. Master is responsible for the number of the units cargo loaded, therefore crew to arrange shipside tally for owners
account.
95. Crew bonus for lashing/securing/dunnaging/welding or unlashing / unsecuring / unwelding per crew/port to be agreed
with charterers directly if port regulations allow to use crew for this job.
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96. Bareboat Charter
Owners warrant that there is no current Bareboat Charter agreement in the current/present link of chains of
agreement/contract between Registered Owners, you and us.
97. Change Of Ownership
The vessel, unless the consent of the Charterers be first obtained, not to be sold nor the management to be changed.
98. Cargo Exclusions
The following cargoes to be excluded from trade : inflammable, injurious, and corrosive cargoes, nuclear fuel or substances
or radioactive materials of any kind and/or their wastes, acids, petroleum or its products, naphtha, turpentine, motor spirits,
asphalt, borax in bulk, carbon black, livestock, hides, sponge iron briquettes, bulk cement, bulk grain cargoes, sludge ore,
direct iron pellets, sulphur, aluminium ashes, barium nitrate, ferrous metal borings, iron oxide spent, lead nitrate, magnesium
nitrate, olivine sand, refuse and garbage of any kind, sawdust, tar, tankage.
Charterers has the right to load IMO classed cargo in accordance with IMO and local regulations including IMO class one
cargoes.
Owners to confirm that vessel is fully fitted and supplied with all valid international certificates enabling to vessel and her
crew to load, carry and discharge all cargoes permitted under this Charter Party and call to all ports for cargo operations.
Vessel has all international certificates required for international trade, and normal cargo operations, including certificate of
compliance for carriage of solid bulk cargoes Appendix A, B, C.
Master always and strictly to follow to Charterers' instructions as to carriage of IMO cargoes.
Owners will not request Classification Society or Port State Control at loading / discharging ports to attend / check loading /
discharging / carriage of the cargo unless having Charterers' permission, which not to be unreasonably withheld.
For Steel Cargo;
Charterers to appoint pre-loading survey for each steel cargo, Cost to be for Charterer’s account.
The Charterers to provide survey report , In case any Claim occurs.
99. Double Banking
Charterers have the privilege to double bank the vessel, i.e. may order the vessel alongside another vessel and/or vice
versa, provided always afloat considered safe.
Necessary fenders to Master's satisfaction to be provided by the Charterers. Any damage sustained" by the vessel to be for
Charterers account.
The Charterers shall have the right, where and when it is customary and safe for vessels of similar size and type to do so, to
order the vessel to go, or to remain alongside, another vessel or to order such vessel to come and remain alongside at such
safe dock, wharf, anchorage or other place for ranshipment, loading or discharging of cargo and/or bunkering. All costs for
Charterer's account. Standard BIMCO ouble Banking Clause to apply.
100. NAABSA Clause
In countries where the practice is common at said ports/docks/berths/anchorages where it is customary for similar size
vessel's, the vessel may always lie safely aground.
101. Breach Of Warranty Clause
It is expressly agreed that Charterers have the right to deduct from hire any damages/losses suffered by Charterers and/or
Shippers for the reason of the Owners/vessel not complying with warranties given in this Charter Party or the vessel not fully
meeting the description under this Charter Party. The deductions shall be made in accordance with Charterers estimate and
shall be adjusted within reasonable time from Charterers supplying evidence. The Charterers have to supply the Owners
with supporting documents and evidence for every case mentioned above and to make such deductions only after official
confirmation of the Owners.
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From: Mark Benett [mailto:M.Benett@ReeseMarine.com]
Sent: Friday, August 19, 2011 12:16 PM
To: chartering@trans.com.tr
Cc: gulcin@trans.com.tr
Subject: m.v."Gloria " time-charter account PS
Dear Sirs,
We refer to our previous message in this matter which we have attached for your guidance.
Please note that as the vessel has meanwhile been delivered our clients have been submitted their final hire
statement showing a balance in their favor of USD. 4.249,66.
In addition to this, our clients are herewith submitting a claim for breach of the charterparty terms as
outlined below.
During the passage to Djibouti, the vessel experienced severe delays and proceeded in directions which were not
in line with the time-charterers’ instructions.
Based on a normal course of events the vessel would have arrived in Djibouti between 2nd and 3rd July 2011.
In fact, the vessel arrived in Djibouti on the 12th of July 2011.
Our clients have asked you to provide evidence of the alleged bad weather conditions but none has been
supplied so far. In accordance with clause 15 of the charterparty we herewith call on owners to provide us with
the relevant pages from the deck and engine log books covering the period from 26th June 2011 till 12th July
2011.
In view of the evidence at hand, we have to conclude that the delay is the sole result of the bad condition of the
vessel as well as improper voyage planning and failure to proceed with utmost dispatch in compliance with
time-charterers instructions. The communications problems with the master, the crane failures during the charter
as well as the vessel’s strange courses and stoppages en route to Djibouti and last but not least recent arrest by
the Port State Control in Constantza clearly illustrate the poor condition of the vessel.
We conclude that this amounts to a breach of the charterparty clauses 2 (failure to provide a seaworthy vessel on
delivery), 8 (performance of voyages), 15 (sailing orders and logs) and 26 (navigation).
In accordance with clause 17 our clients claim off-hire as well as damages resulting from the delay for a period
of 10 days as per the following calculation:
Delay / costs of bunkers
10 days delay at USD. 3.800,-- per day = USD. 38.000,-IFO: 4,5 tons per day x 10 days = 45 tons MGO:
0,45 tons per day x 10 days = 4,5 tons
ifo 45 tons x USD. 694,-- p/mt = USD. 31.230,-mgo 4.5 tons x USD. 1.044,-- = USD. 4.698,-Please find attached the invoice confirming the above prices.
Damages as a result of the 10 days delay
As a result of the delays, the time-charterers incurred following additional costs for the security guards:
USD. 1.250,-- per armed guard and USD. 1.000,-- per unarmed guard per person per day for a period of 10 days
delay makes :
USD 1.250,-- x 2 x 7 = USD. 25,000 USD.1,000,-- x 1 x 10 = USD. 10,000
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Please find attached the invoice confirming the above prices.
Total amount of the damages:
Delays / off-hire : USD. 38.000,-IFO overconsumed : USD. 31.230,-MGO overconsumed : USD. 4.698,-Guards costs : USD. 35.000,--------------------------------------------------------------------------Grand total claim : USD. 108.928,-The deficiencies found during the Port State Control Inspection in Djibouti demonstrate that on board of the
“Gloria” the ISM procedures were not complied with which makes it very likely that the vessel was
unseaworthy at the commencement of the time-charter. We have also noted that the gyro-compass was out of
order which we consider may be the root cause of the failure to keep a normal course on the passage to Djibouti.
You will also appreciate that in addition to the charterparty clauses as mentioned above, the deficiencies as
found during the Port State Control inspection in Constantza are compelling evidence that the owners did not
comply with their obligations under clause 6 which stipulates that the owners are to maintain the vessel in a
thoroughly efficient state in hull and machinery and equipment during the charter period.
On behalf of our clients, we herewith have to hold owners liable for the losses suffered by them as stipulated
above and we look forward to receiving owner’s confirmation on the settlement of their claim failing which our
clients reserve all their rights under in respect of all disputes under the charterparty.
Best regards,
Mark Benett
Senior Claims Handler ReeseMarine Insurance
Tel: +31 10 2546 035 Fax: +31 10 2546 312
Email: M.Benett@ReeseMarine.com
Web: www.ReeseMarine.com
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From: Gulcin Yalcin/Trans Maritime <gulcin@trans.com.tr>
To:’Mark Benett’
Copy:ops@newmar.com
Re: m.v. “Gloria” time-charter account PS
dd. Wed 9/14/2011 10:35 AM
Dear Sirs,
Following reply received from the owners ;
//
Dear Gulcin,
First of all, have to state that we as Dragun Shipping sending this message on behalf of the Messrs Gloria
Shipping Co Ltd who is the exowners of MV Gloria, as being their manager durring the fixture.
Refering to the below message dated Thursday, September 08, 2011 5:39 PM, which was sent by the FDD of
Messrs PS.Ragarding the arguments of content is although seems a challenge of Mr Andrey Sokolov at Newmar
who kept the same style for whole period, but we here to submit the all corresponding from the vessel to
Messrs Newmar from the departure till arrival at Djibuti. On the other hand there is a voyage performance
report is also attached for Meesrs RaedsMarine to check out the situation once again and than to consider if this
alalged case is for court solution or not.
It is master who knows the weather condition the best at his place rather than any weather forcasting station.
The daily reports and master observations are attached. At the end of the day, the master used his over riding
authority for his best command of his ship. C/P allowance for the weather related to her speed is clear too.
Before doing anything, it should be usefull to hear from Messrs ReeseMarine after reading all . In the
meantime, the exowners of MV GLORIA, Messrs Gloria Shipping Co Ltd is fully rejecting to accept any dept
account / claim as figured out on the below mentioned message which has nothing to do with the reality at all,
as they said.
Precisely we fail to understand the attitude of Messrs PS by forwarding such a case which is totally as a result of
Act Of God.
Pleased to hear.
Best regards.
//
KIND REGARDS
Chartering / Gulcin Yalcin
E-Mail : chartering@trans.com.tr
: gulcin@trans.com.tr
Dir: +90 216 457 0036
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IN THE MATTER OF THE ARBITRATION ACT 1996
AND
IN THE MATTER OF AN ARBITRATION
BETWEEN:
POSEIDON SHIPPING LTD.
Claimants/Charterers
- and –
GLORIA SHIPPING CO. LTD.
Respondents/Former Owners
m/v Gloria – Time Charter Party dated 31 March 2011
----------------------------------------------CLAIM SUBMISSIONS
-----------------------------------------------
Introduction and background
1. The motor vessel ‘GLORIA’ (‘Vessel’), general cargo type, IMO 8403337, was chartered by Messrs. GLORIA
SHIPPING CO. LTD., St. Vincent and the Grenadines, (‘Former Owners/Respondents’) to Messrs. POSEIDON
SHIPPING LTD., British Virgin Islands (‘Charterers/Claimants’), with the company NEWMAR SHIPPING acting as
their agents ('Agents'), on 31 March 2011, on a Time Charter Party based on NYPE 93 form evidenced by the Fixture
Recap for a period of min. 80 days up to 120 days.
2. There was no Charter Party signed by the Parties, but the Fixture Recap was agreed via electronic mail, containing
amongst other provisions the following:
Otherwise as per charterers c/p proforma based on nype 93.
The Charterers’ proforma consisted of amended NYPE 93 form and Additional Rider Clauses together with Fixture
Recap and are referred hereinafter together as ‘Charter Party’.
3. Pursuant to the Charter Party the Vessel made one of the voyages from the loading port Mumbai, India, to
discharging port Djibouti, Republic of Djibouti, from 20 June 2011 till 12 July 2011 (‘Voyage’).
4. The Vessel was expected to complete the Voyage on 2-3 July 2011. However due to considerable delay during the
sea passage the Vessel arrived to Djibouti only on 12 July 2011 that resulted in the Charterers' damages which are
further grounded and evidenced in these Claim Submissions.
5. On 19 August 2011 the claim for damages was served to the Managers by Charterers’ P&I Club REESEMARINE.
6. On 14 September 2011 the Charterers received from the Managers, Dragun Shipping, acting on behalf of the
Owners, via freight broker TRANS MARITIME, the official reply to the mentioned claim for damages which stated
the grounds on basis of which Managers fully rejected the Charterers’ claim.
7. Having not agreed with the Respondents’ position and arguments the Charterers initiated this arbitration in order to
recover the incurred damages from the Respondents.
The Claimants’ claim against the Respondents under the Charter Party
8. Clause 15 of the Charter Party provides for the following:
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The Charterers shall furnish the Master from time to time with all requisite instructions and sailing directions, in writing, in the English
language. And the Master shall keep full and correct deck and engine logs of the voyage or voyages.
Following above on 31 March 2011 the Charterers provided the Master of the Vessel ('Master') with the instructions on
vessel operating during the Charter Party ('Instructions on vessel operating' - Appendix No. 1), which inter alia
contained the following instructions:
- sail to each port via reasonable and short routes and/or routes directed by us;
- you will be followed by appointed ocean routes company there4 please keep speed at not less than as per terms of charter party;
- you will be required to send special daily reports which please always send with copy to us.
As for delay, risks, losses the instructions envisaged for the following:
- any delays due to the vessel, crew reasons/problems will be for owners account/time therefore please make all efforts to avoid delays in
ports and during voyages.
9. On 26 May 2011 the Charterers provided the Master with full instructions for the Voyage in question ('Voyage
instructions' - Appendix No. 2), which inter alia mentioned:
- Loading 1/2 sb (s) / sa (s) Mumbai or in chopt Kandla to be declared by chrtrs latest 5 days before vsl eta
- Discharging 1/2 sb (s) / sa (s) Djibouti or in chopt 1SP Med port out of Syria
10. Besides, the Charterers arranged for the assistance of the company - Aeromarine International (AI) - for Master’s
assurance in navigation and routing. Through the Voyage in question the Master kept corresponding with AI (copying
it to the Charterers and the Managers) which in its turn provided the Master with detailed weather forecasts and routing
recommendations.
Vessel’s route in the Voyage
11. The circumstances of the Voyage are evidenced by the Master’s daily reports.
12. Upon the completion of loading in Mumbai corresponding Clean on Board Bills of Lading were issued by the
Master on 15 and 20 June 2011 respectfully stating Djibouti as the discharging. The Master reported as follows (the
Master’s daily report dd. 20 June 2011, 16:38 lt):
Subj: departure report-pos correction
Fm: Gloria/erfh
Good days dear sirs/ladys
A: 20.06.2011 1600 utc sea passage begin pos: 18 50.7 n-072 46.7 e
B: ifo 114.38 mgo 10 mt
C: full cargo loaded sugar in bags no deck cargo
D: sugar
E: fore 6.30 m aft 6.90 m/gm: 0.80 m/frbrd: 3m
Brgds
Master
13. As it is evidenced from the Master’s daily reports dd. 20-25 June the Vessel followed the course to the discharging
port Djibouti in average speed of 4.5 knots up to 26 June 2011, the Master estimated the time of Vessel’s arrival to
Djibouti as 29 June – 1 July 2011.
14. On 26 June 2011 the Vessel unexpectedly changed her course from West–South-West to North. The Master stated
in his message that he was looking for a safe anchorage place due to high swell (the Master’s daily report dd. 26 June
2011, 11:16 lt):
Subj: noon
Fm: Gloria/erfh
Good days dear sirs/ladys
A : 26.06.2011 1100 utc 19 30.1 n-061 47.8 e
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B: ifo: 91.3 mt mgo: 7.25 mt
C: 350/3.5/195/103
D: sw 8/8 bft-sw-wsw 5-6 m
E: nil
F: 01.07.2011 pm wp agw to port of djubuti
G: course altered to north due to very high swell. Looking
Safety
Anchorage place.
BRGDS
MASTER
The fact that the course was altered to North and that the Vessel stayed on that course up to 04 July 2011 is also
evidenced by Vessel Track Map of the Post Voyage Analysis dated 21 July 2011 prepared by WEATHER ROUTING
SERVICES for the Respondents and presented by them to the Claimants in the course of matter negotiations ('Post
Voyage Analysis' - Appendix No. 3).
15. On 27 June 2011 at 15:04 in his message to AI and the Charterers the Master made a request for detailed weather
forecast, in particular:
Note to Chrtrs
If you want avoid more delay and problems, pls give permission to AI for send us the weather forecast. I receipt only INM-C forecast rep.
and this report not show details and cover the too large place.
16. Next day the Master was replied by AI who provided the Master with detailed routing as of June 28. The fact is
evidenced by the following message dd. 28 June 2011 at 19:02:
NEWMAR has now requested AEROMARINE INTL. (AI) to provide our optimum routing service for your voyage from reported
28/0900 unc position 2253.3n 6111.5e and heading 250
1/forecast:
A/seasonal SW-LY monsoons are now prevalent over the Arabian sea.
2/ recommended: as safe navigation and conditions permit, best handling on best SSW-LY heading to gulf of Aden IRTC (adjusting course
/speed as needed for safer handling), remaining safely clear of Somalia and Socotra, Then shortest route Beirut VIA DJIBOUTI and
Suez canal.
Date
LAT
LON
WIND
29/00z 21.24n
59.68e
SW
29/12z 19.93n
58.72e
30/00z 18.73n
57.81e
BF
SEA(M)
SWELL (M)
6
3.0
SSW 3.0
SSW
7
3.5
SSW 4.0
SW
7
4.0
S 4.0
30/12z 17.47n
56.72e
SW
7
4.0
SSW 4.0
01/00z 16.26n
55.67e
SW
6
3.0
S 3.5
01/12z 14.80n
54.42e
SW
6
3.0
SSW 3.5
02/00z 14.11n
52.54e
SSW
5
2.0
S 3.0
02/12z 13.48n
50.50e
SW
5
1.5
SW 1.5
03/00z 12.85n
48.47e
W
3
0.5
WSW 1.0
(LAT/LON position is approximated)
17. Thereby Charterers obviously provided all possible support to the Master regarding the Voyage performance. In the
meantime the Respondents remained silent all the time and so failed to make all efforts to avoid all possible delays in
the voyage.
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18. On June 28-29 disregarding routing recommendations provided by AI the Master kept the Vessel’s course to North.
According to the Master’s daily report on 29 June 2011 the Vessel anchored at position 22 36.06 n – 059 37.9 e, stayed
there till 30 June 2011 and then left her position due to Oman coast guard rules and proceeded to north-west looking
for a safe place for waiting gale to pass (Master’s daily reports dd. 29 June 2011, 12:49, dd. 30 June 2011, 16:07 lt).
19. As per the Masters’ daily reports dd. July 01-02 the Vessel was drifting from position 22 36.06 n – 059 37.9 e to
position 22 50.5 n – 059 32.5 e and then proceeded directly to Djibouti as per the Master’s report dated 2 July
2011,12:32 lt:
Subj: prccding to Djibuti
fm: Gloria/erfh
good days dear sirs/ladys
02.07.2011 0920 utc sea passage begin pos:22 50.5 n-059 32.5 e
Ifo: 78.77 mt mgo: 3.7 mt
20. On 12 July 2011 at 3:30 lt the Vessel arrived on the roads of the port of Djibouti, that was 10 days later than it had
been expected, and tendered corresponding Notice of Readiness ('Notice of readiness in Djibouti' - Appendix No.4).
Master’s failure to prosecute the Voyage with due despatch
21. The Charter Party in question concerning the Master’s obligations as to the voyage performance provides:
8. The Master shall perform the voyages with due despatch, and shall render all customary assistance with the Vessels’ crew. The Master
shall be conversant with the English language and (although appointed by the Owners) shall be under the orders and directions of the
Charterers as regards employment and agency.
17…Should the Vessel deviate or put back during a voyage, contrary to the orders or directions of the Charterers, for any reason other than
accident to the cargo or where permitted in lines 257 to 258 hereunder, the hire is to be suspended from the time of her deviating or putting
back until she is again in the same or equidistant position from the destination and the voyage resumed therefrom. All bunkers used by the
vessel while off hire shall be for the Owners’ account…”
77. If required by Charterers’, Ocean Routes or equivalent during the currency of this Charter Party will recommend route to be followed by
Master at his discretion. In this respect Master is to report vessels noon position by latitude and longitude every 2 days.
22. In respect of the Master’s obligation to prosecute the voyage with utmost despatch Lord Bingham of Cornhill in
Whistler International Limited v. Kawasaki Kisen Kaisha Limited ('Hill Harmony') [2001] 1 Lloyd’s Rep. 147 at p. 150 stated:
‘In the absence of evidence that the rhumb line route was the usual route or a usual route, and in the absence of any satisfactory navigational
or other reason for taking a longer and slower route, the master’s obligation of utmost despatch required him to take the shortest and the
quickest route.’
23. So the obligation to prosecute the Voyage with due despatch required the Master to take the route which would be
the shortest and quickest. In the absence of navigational reasons for not taking the shortest and quickest route, the
Master had been contractually obliged to take it.
24. To define the route which the Master was obliged to take, it should be referred to what have Lord Porter in Reardon
Smith Line Ltd. v Black Sea and Baltic General Insurance Co.Ltd. [1939] AC 562 at p.584 said:
‘It is the duty of a ship, at any rate when sailing upon an ocean voyage from one port to another, to take the usual route between those two
ports. If no evidence be given, that route is presumed to be the direct geographical route.’
25. Taking into consideration the abovementioned, it is obvious that the Master was obliged to take the shortest
geographical route, which would be also the quickest as it is illustrated on the Estimated voyage route scheme enclosed
herewith ('Estimated voyage route' - Appendix No. 5) unless there were satisfactory reasons for taking longer and
slower route.
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26. Acting in the interests of the Vessel’s safety, her crew and her cargo the Master has the right to exercise his
discretion and refuse to obey Charterers’ orders and instructions, but he must be prepared to justify his decision. To
take a longer route without justification is a breach of the contractual obligation.
27. Nevertheless, as it is described above, without any reasonable excuse the Master intentionally did not follow the
shortest and quickest route despite his contractual obligations and chose the route that was longer and could not be
described as the usual one or at least logical regarding the actual events of the Voyage.
28. The Charterers never gave to the Master any instructions to call to the North, to Oman area, for any purposes or to
wait there since the route recommendations provided to sail to Gulf of Aden as stated in paragraph 26 above.
29. It was assumed by the Charterers that the Vessel would arrive on the roads of the port of Djibouti on 2-3 July 2011,
but due to the Master’s failure to prosecute the Voyage with the utmost despatch and to follow the corresponding route
recommendations, the Vessel arrived to Djibouti only on 12 July 2011 which was 10 days later then it had been
estimated.
30. Delays in the Voyage caused the Charterers’ significant damages described below.
Master’s reference to bad weather conditions
31. The Master in his daily report dd. 27 of June 2011 explained that the alteration of Vessel’s course was made for the
reasons of safety of the Vessel, her crew and her cargo as the Master was trying to escape from Gale and very high
swell.
32. The routing company AEROMARINE INTERNATIONAL (AI) weather forecasts and routing recommendations
during the Voyage. In their letter to the Charterers dd. 28 June 2011 swell over the region in question, on 26 – 28 June
2011, was described as 4-5 meters that equals to 7 on the Beaufort scale and is defined in it as Near Gale ('AI weather
report' – Appendix No. 6).
As it is stated in AI reply to the Master's forecast request dd. 28 June 2011 at 19:02 state of weather was estimated as 7
on the Beaufort scale only for 29-30 June 2011, during the rest of the Voyage it never exceeded 6 on the Beaufort scale.
Post Voyage Analysis, provided by the Respondents, similarly estimates the state of weather as 7 on the Beaufort scale
from 26 June to 29 June 2011, and not exceeding 6 on the Beaufort scale during the rest of the Voyage.
33. Beaufort scale defines its 7 position as Near Gale, that is not similar to Gale (8 on Beaufort scale) to which the
Master referred to in his daily report dd. 27 of June 2011. Gale is described like weather with gale state of sea with
moderate high waves of greater length and edges of crests beginning to break into spindrift. The foam being blown in
well-marked streaks along the direction of the wind. Meanwhile Near Gale is described like strong weather with sea
heaps up and white foam from breaking waves blown in streaks along the direction of the wind.
34. To define whether the Vessel was able to encounter actual weather conditions during the Voyage, the reference
should be made to the Vessel’s Character of Classification.
35. According to Hull Certificate of Class No. 63475-54-7 dd. 15 March 2009, valid till 15 March 2014, issued at Varna
by the Bulgarian Register of Shipping the Vessel has been assigned the character of classification BR 100 A5.
36. In compliance with sub clause 3.2 of the Classification and Surveys of Bulgarian Shipping Register the character of
classification BR 100 A5 means that hull/machinery/special equipment of the Vessel was construed in full accordance
with construction rules of the Bulgarian Shipping Register (other rules are considered to be equivalent).
37. Sub clause 3.3.1.1 of the Classification and Surveys of Bulgarian Shipping Register provides that the vessels
complying with the construction rule requirements for a restricted range of service only will have special notations
affixed their character of classification.
38. Considering the fact that there is no additional notations regarding restricted range of service affixed to the
character of the Vessel’s classification, the Vessel is a seagoing vessel and is not limited in her range of service area.
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39. Therefore, taking into account weather description as per position 7 on the Beaufort scale and class of the Vessel it
is reasonable to submit that nothing was threatening the safety of the Vessel and actual swell cannot be considered as
satisfactory reason to alter the course, as the Vessel was designed to be able to encounter such swell.
40. Lord Bingham of Cornhill in “Hill Harmony” case in this respect stated:
‘…the vessel was fit to sail by the shorter northern route and the master did not have any good reason for preferring the longer southern route.
It was not a good reason that he preferred to sail through calm waters or that he wanted to avoid heavy weather. Vessels are designed and
built to be able to sail in heavy weather. The classification society rules require, as does clause 1 of the NYPE Form, the maintenance of
these safety standards. It is no excuse for the owners to say that the shortest route would (even if it be the case) take the vessel through the
heavy weather which she is designed to be able to encounter.’
41. Even if theoretically the threat to the Vessel’s and cargo safety did exist due to bad weather conditions, still it was
the Master’s obligation to take the shortest route under such circumstances and to sail to the nearest en route shelter at
Ras Madrakah area which was the position dated 04 July 2011 indicated on the Estimated vessel’s route.
42. Nevertheless instead of sailing to the mentioned position at Ras Madrakah area, South Cost of Oman, the Master
sailed the opposite direction to the North of Persian Gulf, which was absolutely illogical and obviously constituted a
failure to fulfill his obligations under the Charter Party. So the Master’s referral to bad weather as his excuse to change
the route is absolutely ungrounded and not acceptable.
43. The Charterers are sure that the actual reason for the Master’s breach of his obligations under the Charter Party was
the absence of his practical experience in sailing in the region in question. The same follows from the below Master’s
daily report dd. 30 June 2011, showing the Master’s confusion and incompetence, stating the following:
‘… i kindly inform you due to bad weather I can not wait at drift. pls urgently inform me what i must to do? if you can not
say anything i will proceed to north I must safe my cargo and vessel as captain…
Please do not stay me alone and share you advise… i say again pls give answer us urgently…’
It is worth to mention that at these dates the Master continued to be in correspondence with AI receiving from them
possible recommendations.
Respondents' reference to Act of God
44. On 14 September 2011 the Charterers received reply from the Managers on behalf of the Owners via freight broker
TRANS MARITIME that inter alia contained the following:
‘It is master who knows the weather the best at his place rather than any weather forecasting station. The daily reports and master
observations are attached. At the end of the day, the master used his over riding authority for his best command of his ship. C/P allowance
for the weather related to her speed is clear too.
Before doing anything, it should be useful to hear from Messrs. Reads Marine after reading all. In the meantime, the exowners of MV
Gloria, Messrs Gloria Shipping Co Ltd is fully rejecting to accept any dept account/claim as figured out on the below mentioned message
which has nothing to do with the reality at all, as they said.
Precisely we fail to understand the attitude of Messrs. by forwarding such a case which is totally as a result of Act of God.’
45. The Charterers fully reject the Respondents’ reference to the Act of God which allegedly kept them free from any
liability as stated in their reply to the Charterers' claim and insist that damages under the Voyage in question occurred
due to the Respondents’ breach of their obligations under the Charter Party.
46. The Clause 21 of the Charter Party in respect of exceptions provides for the following:
‘The act of God, enemies, fire, restraint of princes, rulers and people, and all dangerous and accidents of the seas, rivers, machinery, boilers,
and navigation, and errors of navigation throughout this Charter, always mutually excepted.’
47. In Transco plc v Stockport Metropolitan Borough Council the following definition of Act of God was given by Lord
Hobhouse of Woodborough:
‘Thus 'act of God' was always a common law exception. It was metaphorical phrase (like "fate") with a religious origin used to describe those
events which involved no human agency and which it was not realistically possible for a human to guard against: an accident which the
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defendant can show is due to natural causes, directly and exclusively, without human intervention and could not have been prevented by any
amount of foresight, pains and care, reasonably to be expected of him.’
48. As stated above the Vessel was able to sail under the Voyage's weather conditions without any threat to the Vessel,
her crew and her cargo. Having no satisfactory reasons the Master intentionally altered the course to North which
caused the damages resulted solely from the Master’s actions and not anyhow from the Act of God.
49. Due to the Master’s failure to prosecute the Voyage with utmost dispatch the Charterers observed minimum 10 days
of delay on the Voyage in question. In addition to the damages connected with delay of the Vessel the Charterers
incurred additional expenses for IFO and MGO over consumed and expenses for armed guards.
50. Therefore the Claimants claim the damages resulting from the Vessel's delays in the Voyage in amount of USD
108,928.00 (one hundred and eight thousand nine hundred twenty eight) as per the following calculation:
Delays: USD. 38,000.00
IFO overconsumed : USD. 31,230.00
MGO overconsumed : USD. 4.698.00
Guards costs : USD. 35,000.00
-------------------------------------------------------------------------Total: USD. 108,928.00
51. Furthermore, the Claimants are entitled to and claim costs and compound interest upon the said sums pursuant to
the Section 49 of the Arbitration Act 1996 at such rates and for such periods as the Tribunal shall determine.
AND THE CLAIMANTS CLAIM:
(1) Indemnity of damages in the amount of USD 108,928.00
(2) Interest pursuant to the Section 49 of the Arbitration Act 1996;
(3) Costs.
On behalf of the Claimants
__________________
David White
Director of POSEIDON SHIPPING LTD.
Enclosures:
Appendix No 1 Instructions on vessel operating
Appendix No.2 Voyage instructions
Appendix No. 3 Post Voyage Analysis
Appendix No. 4 Notice of readiness in Djibouti
Appendix No. 5 Estimated voyage route
Appendix No. 6 AI weather report
SERVED this 20 June 2012 by courier to:
Gloria Shipping CO. LTD.
Trust House 2, Ronaldine Street Kingstown, St. Vincent and the Grenadines
Mr. Tom Smith, LMAA Arbitrator
Gallery 6,
the Lloyds Building 18
Leadenhall Street London EX3V 1LP UK
tom@smithco.co.uk
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APPENDIX No. 1
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
Instructions on vessel operating
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NEWMAR / Bulk
From: NEWMAR / Ops [ops@Newmar.com]
Sent: 31 march 2011 17:40
To: ‘Gloria Shipping’; 'Trans Maritime';
Subject: RE: MV GLORIA - urgent from Newmar
FROM: NEWMAR
Regarding: mv Gloria – voyage instructions
Dear Master,
We are pleased to advise you that your good vessel will be delivered to POSEIDON SHIPPING LTD. (PS)
as time charterers on DLOSP Tuzla On 01‐02.04.2011
Please note that your good vessel will be monitored and managed by us, Newmar, as time Charterers'
agents for and on behalf of PS.
Upon delivery please send following:
+qte+
DELIVERY NOTICE
This is to certify that my motor‐vessel "INSERT" has been delivered to Time charter
POSEIDON SHIPPING(Charterers) by her Owners "INSERT NAME" upon DEPARTURE last sea
Pilot
Station "INSERT" (Port) on "INSERT" 2010 Time lt
/ UTC (Date and Time)
We herein confirm that vessel, her holds, hatches, hull, Equipment are in good, seaworthy condition
and vessel is Fully ready to load/carry/discharge intended cargoes as per instructions given by
charterers
We also confirm that all certificates are valid for performance intended charter and crew/officers
are healthy in good condition
At the time of delivery we confirm that following figures are true and correct:
HFO quantity m tons
MGO quantity m tons
FW quantity m tons
CONSTANT m tons
BALLAST m tons
DWCC m tons
LO/FW m tons
TWD no/m tons
stores etc. m tons
Bow truster yes/no ‐ working/not working
HFO TANK CAPACITY: m tons/c.m
MGO TANK CAPACITY: m tons/c.m
For the Owners
Capt.
Master MV
+unqte+
Preliminary planned voyage as 1st laden leg (via Bosphorus, Dardenelles,
Suez): Tuzla (delivery) – Gemlik (loading) – Derince (loading)
‐ Istanbul roads (bunkering) – Jeddah (discharging) – Dammam
(discharging) – Umm Qasr (discharging).
Please note that on‐hire bunker survey to be arranged as
Follows: at Gemlik, reverting with surveyors contact details.
Please send us urgently:
‐ Actual Speed/consumption table for knots
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‐ Actual consumption at port idle/working
‐ full list of lashing/securing/dunnage material on board
‐ bunker calculation and advise how many IFO/MGO you might
Require for this voyage
‐ Whether vessel equipped with bow truster or not
FYI we are working on to fix some additional cargo of which You will be advised in due time. Thus
upon delivery (which shall take place upon DLOSP Tuzla atdnshinc), pls proceed toward for loading of
first port declared but please note that ROUTE same as bunkering places/load‐ discharge ports are
subject to changes therefore please be prepared for this in advance.
As to bonuses for lashing, Securing, dunnaging, welding, unlashing, unsecuring, dunnage removal,
unwelding there is special NEWMAR tariff exists to be discussed for each port where charterers may
require assistance of crew
please do not accept/sign receipts as to any securing/dunnage/ lashing materials not confirmed by the
charterers/Newmar in written form/or not necessary for using.
Please be advised that:
‐ Yr good vessel going to carry out shipments as per below terms
‐ Pre‐stowage plan will be provided by Capt V Gulko
‐ the loading/discharging can be supervised by supercargo
Appointed by the charterers
1)
‐ loading: gemlik, roda port, 1 gsb aa
‐ disch: jeddah
‐ total abt 1430 cbm / abt 1095 ts cable in reels.
‐ cargo to be loaded in one tier only, i.e. unstackable, un‐overstowable.
‐ to be loaded vertically, like standing car tyre (not eye‐to‐sky)
‐ no other cargo to be loaded on top of this cargo
‐ once loaded/lashed, cargo not to be moved/shifted until port of discharge.
‐ max 1/2 of cargo can be loaded on deck
‐ as part cargo
‐ laycan 02 april 2011
‐ cargo basis free in l/s/d, liner out bss under hook.
‐ s/r bs/l marked frt pyble as per c/p. chopt to request bs/l tb marked 'frt prepaid'
‐ dunnaging: under each reel, two wooden planks (with approximate dims:
lxwxh: 3,0 x 0,20 x 0,10 m) to be laid. also each reel will be supported
by two triangular wooden 1+2+3+wedges.
‐ if needed, ows/master to allow eyebolts to be welded ondeck and/or underdeck, which to be used for
lashing/securing purposes.
‐ ows will allow free use of l/s/d materials as onboard.
‐ master to sign/stamp the 'lashing certificate' (as attached) upon completion of lashing
‐ b/l to be marked 'c.o.b.'. remarks, if any, (such as : "inner steel edges of reels slightly bent",
"wet before shipment", "loaded from open area'', "wooden planks bent", etc) to be inserted only in
mates receipts and chrs to issue loi in ows pandi wording for 'cob' b/l. master's remarks on mates
receipt always to be quantified and always to show reel numbers (each reel has specific number
printed on itself).
‐ b/l to be signed by the master or in chopt by the chrs' agent; bukas shipping & trading co.
istanbul
‐ load: 48 weather working hrs, shinc
‐ discharging: liner out (under hook) on pier or on truck at chopt. rcvrs to take delivery of cgo as
fast as vsl can discharge.
‐ loading to be performed by shore cranes. but if needed,
ws/master to allow free use of ship gears/cranes.
‐ discharging to be performed by shore/vsls cranes
‐ nor to be tendered via cable/email/radio/fax/tlx bss wwww
‐ in case of original bs/l not available at d/port, it is chopt to ask cgo to be discharged w/out
original bs/l against chrs' loi in ows' wording.
‐ master to send daily eta notices to load discharge port and 12/6/3 pre arrival
‐ other dets as per attached gencon 94 c/p
2)
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‐ Load port: Derince
‐ Disch port: Dammam
‐ Cargo: 100 c.m. / 70 mt (50 cbm cases stuckable, one piece 7x2,5x3 m)
‐ Hook/Hook terms
‐ master/ownrs shall send daily and definite notices 10/7/5/3/2/1
ds to shipper's/rcvrs'/chrts'/agents'office.
‐ notice to be given tendered by radio/vhf/tlx/fax wwww via
cable/telex from usual
‐ lashing/securing/dunnage/crane driwing to be arranged by crew
‐ charterers agents have rights to sign bills on master behalf
If so may be required against letter of authorization signed
By master
‐ signing and releasing bills of lading marked 'freight payable as
per booking note' and/or 'freight prepaid'
‐ o/w as per B/N
3)
‐ Load port: Derince
‐ Disch port: Umm Qasr
‐ Cargo: projects as per packing list
‐ Part cargo
‐ Hook/Hook terms
‐ master/ownrs shall send definite notices 10/7/5/3/2/1 ds to
shipper's/rcvrs'/chrts'/agents'office.
‐ notice to be given tendered by radio/vhf/tlx/fax wwww via
cable/telex from usual
‐ lashing/securing/dunnage/crane driwing to be arranged by crew
‐ charterers agents have rights to sign bills on master behalf
If so may be required against letter of authorization signed
By master
‐ signing and releasing bills of lading marked 'freight payable as
per booking note' and/or 'freight prepaid'
‐ o/w as per B/N
END.
FYI details of agents as follows:
AT GEMLIK
BUKAS Shipping & Trading Co, Istanbul
Phn: +90 216 454 5553
Fax: +90 216 454 5634
operations@bukas.com.tr
AT DERINCE AND TURKISH STRAITS:
RINA SHIPPING SERVICES & AGENCY
Tel.+90‐2164765987
Fax +90‐2164765988
email: info@rinaaship.com
SUEZ CANAL:
Oriental Mondo Shipping Agency
FAX : +20 66 3254876
TEL : +20 66 3254877
email: info@orientalmship.com
AT JEDDAH
Kado Shipping,
Tel : +966 2 2639876
Fax : +966 2 2639879
Em : info@kadoship.com
AT DAMMAM AND UMM QASR
TO BE ADVISED LATER ON
Please make sure all e‐mail are fully registered in your mailing system allowing agents/us/vessel to
establish proper communication during all voyage time/period
COMMUNICATION / REPORTING / PROCEDURES INSTRUCTIONS:
eta notices to ports/canals
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please send daily eta and 24/12/6/3 hours final notices to agents and always in copy to Newmar.
bunker calc
1) before deprt from any port pls send us calculations of ifo/mdo to be consumed in each ballast‐
laden voyages between Ports/places stating ROB IFO/MGO ports of depart/arrival. voyage
1) calculate each passage time at vessel's commercial/cp speed send to us.
2) make sure that before arrival to port vsl is in suitable condition for performance of any
cargo/port operations.
3) make sure that holds, hatches cranes etc are all absolutely suitable for performance of cargo
operations and advise agents necessary arrangements for handling of cranes at port and anchorages.
4) give maxium assistance to agents to prevent delays and losses of time.
ocean routes
1) you will be followed by appointed ocean routes company there4 please keep speed at not less than
as per terms of charter party.
2) you will be required to send special daily reports which please always send with copy to us.
3) sail to each port via reasonable and short routes and/or routes directed by us.
Cargo
make maximum care to loaded/discharged cargo insuring that nothing affecting its safety and quality
while it is transported and control/supervise discharging operations, stevedores actions, cargo
surveyors/draft survey work.
Nor at ports
tender it immediately upon vessel's arrival on anchorage indicated by agents any time day or night by
whf/radio and than by e‐mail/fax to agents, receivers and us without delays. make sure that it is
well received by us/agents.
While at port
keep us informed daily abt: vsl's movements, cargo operations, cargo remained on board, expected time
for commencement of next operation, expected time of completion of current operation, weather and sea
condition at port/anchorages, any unusual matters (unexpected) at port especially during cargo
operations abt which pls inform us immediately (abt any delays, strikes etc.)
Cargo/bunker/ohh‐off‐hire/surveys/bunkering
1) you will be advised abt bunker supplier/surveyors in due time at relevant place/port
2) make maximum assistance to bunker supply/ survey company as to any arrangements.
3) in case of any delays, problems related to operations please inform us.
Daily reports
each day 9:00 utc time please send us daily reports describing
at sea:
ship name/call sign
00/00/09 0000 UTC (DD/MM/YY)
Pos lat/long
BROB: ifo/mgo
speed: knts
heading: deg
wind:
swell:
daily distance: XXX nm
next port/place: XXXX
ETA: DDMMYY HHMM utc/lt
remarks/comments:
at port:
ship name/call sign
00/00/09 0000 UTC (DD/MM/YY)
Pos/berth/place
BROB: ifo/mgo
Cargo on board: tons
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Cargo load/disch 24 hrs:
Delays/stoppages: (cranes/gangs)
ETD: DDMMYY HHMM utc/lt
Remarks/comments:
log books
you will be requested by agents or charterers representatives/surveyors to provide log/engine books
for fixing/copying of evidences of the vessel good speed/consumption and voyage performance please
provide the logs accordingly.
delays, risks, losses
1) any delays due to the vessel, crew reasons/problems will be for owners account/time
therefore please make all efforts to avoid delays in ports and during voyages.
2) in case of any accidents, problems, possible risks and losses please report urgently to operator
by e‐mail and phone.
Upon re‐delivery master:
1) Will allow to off hire surveyor and/or agents to make a copy of the log book and engine books as
per terms of the c/p.
2) Will send following RE‐DELIVERY Notice:
+qte+
RE‐DELIVERY NOTICE
This is to certify that my motor‐vessel "INSERT" has been re‐delivered from Time charter POSEIDON
SHIPPING(Charterers) to her Owners "INSERT NAME" upon DEPARTURE last sea Pilot Station "INSERT"
(Port) on "INSERT" 2010 Time lt / UTC (Date and Time)
We herein confirm that vessel, her holds, hatches, hull, Equipment are in good, seaworthy condition
with all holds clean as per terms of c/p
We also confirm that all crew/officers are healthy in good condition
At the time of re‐delivery we confirm that following figures are true and correct:
HFO quantity m tons
MGO quantity m tons
LO/FW m tons
stores etc. m tons
For the Owners
Capt.
Master MV
+unqte+
please send all your correspondence/notices/information 24/7 via Newmar as charterers agents and
contact us anytime for any questions, our contact details as follows:
Andrey Sokolov (commercial matters)
Mobile: +38 050 93707000
EMAIL: OPS@NEWMAR.COM
Vlad Gilka (technical matters)
Mobile: +38 050 99 17286
EMAIL: OPS@NEWMAR.COM
PLEASE CONFIRM
Best Regards,
Andrey Sokolov
NEWMAR
Phone : +38 048 736 20 101
Fax : +38 048 736 20 61
Email(1): ops@Newmar.com
W.Site : www.Newmar.com
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APPENDIX No. 2
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
Voyage instructions
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NEWMAR / Bulk
From: NEWMAR / Ops [ops@Newmar.com]
Sent: 26 may 2011 18:39
To: 'Gloria Shipping'; 'Trans Maritime'
Copy: 'NEWMAR / Ops'
Subject: from Newmar - further preliminary voyageinstructions
FROM: NEWMAR
Dear Capt Hizli
Please kindly note that at the moment following schedule is Arranged:
Fujeirah (bunkering) ‐ Muscat (security embarkation) ‐ Mumbai or Kandla (loading, to be advised
selected port) ‐ Djibouty or in chopt 1SP Med port out of Syria (discharging, not yet confirmed)
Voyage instructions:
‐ Qty min 4000 net mts upto vsl's max capacity in chopt (cargo is in 50kg bags)
‐ Loading 1/2 sb(s)/sa(s) Mumbai or in chopt Kandla to be declared by chtrs latest 5 days before
vsl eta
‐ Discharging 1/2 sb(s)/sa(s) Djibouti or in chopt 1SP Med port out of Syria
‐ laycan 3/7 Jun 2011
‐ Load 1000 mt Sat noon/Mon 0800 hrs ntc eiu
‐ Disch 800 mts Thunoon‐Sat0800 hrs ntc eiu
‐ Hold load readiness: master to insure vsl arrives load port with clean ready holds and avoid
unnecessary delays in waiting for vsl to make holds ready for loading. Please request master to
confirm that all holds will be in clean / load ready condition on arrival. Conditions /
specifications for holds to be accepted to load bagged sugar, but not limited to: Watertight
holds / hatch covers, Holds to be clean and dry, free of scale/loose rust, free of flaking paint
as well as free of any/all foreign materials and residue of previous cargoes. Hold cleanliness
requirements apply to all areas of the hold including but not limited to tanktops, bulk heads,
coamings, recesses, accesses, pipes, etc. These requirements also apply to the underside (as
well as the topside) of the hatch covers. It is very important that owners / Master pay close
attention to the cleanliness requirements for loading
‐ Tally ‐ Shore tally to be for charts acct. Quantity at Bs/L to be “said to contain” and should
be inserted in accordance to the info received from shippers tally. Charts have right to seal
the holds after loading. Kraft paper cost/supply and laying charts account.
‐ freight prepaid and cleanonboard bills of lading required. Otherwise as per c/p.
‐ Charterer's option to issue Liner Bills of Lading (which to show 'Free out' in the main body)
if required
‐ Should original bills of lading not be available in time for vessel's arrival at discharging
port(s) then owners agree to discharge the cargo against charterers letter of indemnity.
‐ Charterers option to survey vessel which will include a water tightness test prior to
commencement of loading operations. Such survey to be at the charterers expense. Survey to be
conducted by DPS Surveys or their local representative. 2
‐ daily mate's receipts to be issued in conformity with daily tally sheets
‐ master make all efforts that cranes are in working condition o/wise owners
Are responsible for failure
AGENTS AT SECURITY EMBARKATION PORT:To be advised
AGENTS AT LOADING PORT: To be advised
AGENTS AT DISCHARGING/DISEMBARKATION PORT To be advised
End
Best Regards,
Andrey Sokolov
NEWMAR
Phone : +38 048 736 20 101
Fax : +38 048 736 20 61
Email(1): ops@Newmar.com
W.Site : www.Newmar.com
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APPENDIX No. 3
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
Post Voyage Analysis
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APPENDIX No. 4
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
Notice of readiness in Djibouti
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FM: M/V GLORIA
12.07.2011 0330 lt
DJIBOUTI
TO:MST SHIPPING AS AGENT
CC:NEWMAR SHIPPING
CC:DRAGUN SHIPPING
CC:ALL CONCERNED PA RTIES
NOTICE OF READINESS
DEAR SIRS,
I, AS THE TINDERSIGNEDM ASTER OF M/V GLORIA STATED THAT MY
VESSELH AS ARRIVED TO THE PORT OF DJIBOUTI ON THE DATE I2.O7.2O11 AT
O33O LT HOURS. MY VESSELI S READY IN EVERY RESPECT TO COMMENCE TO
DISCHARGING SUGAR IN BAG SAID TO CONTAIN 4OO2'5 MTS AND SAID TO
CONTAIN 8OO5O BAGS ACCORDING TO THE TERMS, CONDITIONS AND
EXCEPTIONS OF THE RELEVANT AND GOVERNING CHARTER PARTY.
YOURS FAITHFULLY
AHMET HIZLI
MASTER OF M/V GLORIA
NOR TENDERED 12.07.2011 03 30 LT
NOR ACCEPTED 12.07.2011 13 00 LT
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APPENDIX No. 5
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
Estimated voyage route
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APPENDIX No. 6
To the Arbitration Claim regarding
m/v GLORIA – Charter Party dated 31 March 2011
AI weather report
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"AI" ---28.06.2011 21:33:35--RE: GLORIA
From: "AI" <ops@AIweather.com>
To: <OPS@NEWMAR.COM>
Date: 28.06.2011 21:33
Subject: GLORIA
RE: GLORIA
ANDREY
YOUR APPROVAL FOR WEATHER FORECAST AND ROUTE
RECOMMENDATION IS NOTED. WE WILL SEND INFORMATION TO VESSEL SHORTLY. AS TO YOUR
QUESTION UNDER WHOSE PERMISSION THE VESSEL CHANGING THE COURSE IN WHATEVER
OPTION? WE NEED URGENT AND DETAILED EXPLANATIONS ON THE BELOW AI HAS NO
INFORMATION ON REASON WHY VESSEL CHANGED COURSE FROM 26 TO 28 JUNE. OTHER
THAN THE REASON PROVIDED BY THE VESSEL. VESSEL ADVISED THE FOLLOWING ON 26 JUNE
COURSE ALTERED TO NORTH DUE TO VERY HIGH SWELL.LOOKING SAFETY ANCHORAGE PLACE.
WINDS AT THAT TIME WERE SW 30-35 KNOTS WITH SEAS/SWELLS SW 4-5 METERS. PLEASE LET US
KNOW IF YOU NEED ANY ADDITIONAL INFORMATION.
BEST REGARDS
AI OPERATIONS
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IN THE MATTER OF THE ARBITRATION ACT 1996
AND
IN THE MATTER OF AN ARBITRATION
BETWEEN:
GLORIA SHIPPING CO LTD
Respondents/Owners
AND
POSEIDON SHIPPING LTD
Claimants/Charterers
M/V "GLORIA"- Time Charter Partv dated 31 march 201 1
DEFENCE SUBMISSIONS
A. INTORDUCTION
1.
The motor vessel "GLORIA" was chartered by GLORIA SHIPPING Co. LTD., St Vincent ard Grenadines
(Respondents/Owners) to POSEIDON SHIPPING LTD British Virgin Islands (Claimants/Charterers)
with the company Newmar Shipping (Agent) on 31 March 2011 , on a Time Charter Party based on NYPE
93, for a period of min. 80 days up to 120 days.
2.
As per goveming Charter Party, the Vessel made one of the voyages from the loading port Mumbai, India
to discharging port Djibouti, Republic of Djibuti, from the 20 June 2011 till 12 July 2011.
3.
Upon completion of loading of sugar cargo from Mumbai, Vessel commenced her voyage to the discharge
port on 20 June 2011.
4.
During her voyage from loading port to the discharge port, Vessel altered her course to north due to the
bad weather conditions in order to find a safety anchorage place.
5.
The vessel anchored to Muscat Port /Oman as a safe anchorage place.
B. PLEADINGS
1.
As it is known deviation is intentional and unreasonable change in the geographical route of the voyage
as contracted. In the subject case, the Master was obliged to change the course of the vessel since the wind
force was about 8-9 Beaufort. First of all, it should be noted that, the area that the vessel was sailing is the
Monsoon Climate region and the season was the Monsoon Season. Therefore it is obvious that the Master
acted prudentially for the safety of the vessel and its sugar cargo . To constitute an unjustifiable deviation
the departure from the contractual voyage must be the result of a deliberate act on the part of the owner
or the ships officer. Consequently there will be no breach of this implied undertakingi if the vessel is
blown off course during a storm. The weather conditions could be seen by the report of Weather Routing
Services Inc.
2.
As per common Marine Practice, The Master is under an obligation to exercise reasonable care and skill in
ensuring the success of the joint enterprise and accordingly is entitled to deviate from the proper course
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in order to ensure the safety of the vessel and its cargo. In the subject case, the deviation was a justifiable
deviation and therefore we totally reject the Claimants allegation that the Vessel unexpectedly changed
her course from west-South-west to North.
3.
As it can be seen by the Master's message to the Claimants, firstly the Master aimed to anchor the vessel
to the south of Muscat Port and the local port authorities did not allow to the such anchorage since a local
agency should be nominated. Several times, Master requests by his e-mail messages, from the Claimants
to nominate an agency, however, the Master could not have any reply/instruction from the Claimants. As
per Marine Practice, a charterer has the right to nominate a port, whether under a time or voyage charter
he is under an implied obligation to nominate a safe port. (Appendix 1).
4.
Also, it should be noted that the wind was blowing from the south. As it is known to all, for a safe voyage
the Vessel should not sail to the direction of the high wind for the safety of the vessel and its cargo.
Therefore, the Master was obliged to sail to the north.
5.
As per Marine Practice, a charterer has the right to nominate a port, whether under a time or voyage
charter he is under an implied obligation to nominate a safe port. However, the Charterers/Claimants
failed to nominate a safe port and under these circumstances the Master was obliged to make a justifiable
deviation for the safety of the vessel and its cargo and the Vessel was anchored to the nearest safe port. It
should be also taken into account that the Vessel sailed only 432 miles in excess due to the justifiable
deviation. This also evidence that the Master altered the Vessel's course to the nearest port for the safety
reasons (Appendix 2).
6.
If the light of our above explanation, it is clear that the Charterers claim is groundless and malicious.
7.
The object of any litigation or arbitation is normally to obtain compensation for losses resulting from the
breach of contract of affreightment. In approaching the problem of assessing such compensation, the
Courts have to deal with whether the alleged damage arises due to the breach of contact. The Claimant
claim is connected with delay of the Vessel and the Charterers incured additional expenses for IFO and
MGO. It should be emphasized that, the merits of the case are whether there is a justifiable deviation.
Assuming that the Tribunal awarded that the deviation has not justifiable, in such case also the amount
claimed is not acceptable since it is unreasonable. The consumption of the IFO and MGO could not be U
SD 108,928 for an extra 432 miles due to the deviation.
Enclosures:
Appendix No.1 The correspondence of the Master and the Manager
Appendix No.2 The copy of the map of the subject voyage and deviation
Any additional documents/evidencescould be served to the Tribunal upon request of the
Tlibunal.
GLORIA SHIPPING CO. LTD.
AND THE RESPONDENTS CLAIM:
1.
We totally object to the Claimart claim based on the above explained grounds,
2.
It should be awarded that the deviation was a justifiable deviation due to the bad weather conditions.
3.
It should be awaded the Arbitration costs will be paid by the Claimants.
GLORIA SHIPPING CO LTD.
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APPENDIX 1
From: 23439684.inmc@skyfile-C.com
Sent: 26 June 2011 14:08
To: ops@newmar.com
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 1928324]
Subj: noon
Fm: Gloria/erfh
Date/time:26.06.2011 1100 utc
Pos:19 30.1 n-061 47.8 e
Brob:ifo:91.3 mt mgo:7.25 mt
Speed: 3.5 knts
Heading:350
Wind:sw 8/8 bft
Sweel:sw-wsw 5-6 m
Daily dist: 103 nm
Next port:1275 nm
Eta to djubuti 01.07.2011 pm wp agw
Note:course altered to north due to very high swell. Looking safety anchorage place.
From: 23439684.inmc@skyfile-C.com
Sent: 26 June 2011 14:12
To: aiops@weather.com
Copy: ops@newmar.com; fleet@dragun.com
Subject: [IMN: 2349684 REF: 1928546]
Subj:noon
Fm:Gloria/erfh
A:26.06.2011 1100 utc 19 30.1 n-061 47.8 e b:ifo 91.3 mt mgo:7.25 mt
C:350/3.5/195/103
D:sw 8/8 bft-sw-wsw 5-6 m
E:nil
F:01.07.2011 pm wp agw to port of djbuti g:course altered to north due to very high swell.looking safety
anchorage place.
From: 23439684.inmc@skyfile-C.com
Sent: 28 June 2011 18:10
To: ops@newmar.com
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 2657835]
Fm:Gloria
Dear sirs
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We cant more proceed to destination due to heavy gale and now we are going to safe anchorage place.if you
check again our noon reports you can see we did everything for to proceed in heavy sweel and with slow speed,
due to this reasons our mgo quantity down to critical level.for our safety I kindly invite you to arrange some
place for supply mgo (I think muscat can be).
After the anchorage we will check our mgo quantity, if I seen not safety for to completion of voyage you must
supply definitely, I kindly advise yours as master, you must begin search from now. Pls don’t forget we are in
sea, nothing is 100 percent guarantee at sea.
From: 23439684.inmc@skyfile-C.com
Sent: 29 June 2011 12:44
To: ops@newmar.com
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 4675897]
Subj:anch.
Fm:Gloria/erfh
29.06.2011 0900 utc vessel at anchore due to the bad weather.
Pos:22 36.06 n-059 37.9 e
Ifo:79.3 mt
Mgo:5.75 mt
From: 23439684.inmc@skyfile-C.com
Sent: 30 June 2011 16:05
To: aiops@weather.com
Copy: ops@newmar.com; fleet@dragun.com
Subject: [IMN: 2349684 REF: 0749603]
Fm:Gloria
30.06.2011 1140 utc heaved up anchore 1250 utc sea passage begin pos
22 42.3 n-059 34.8 e
Brob:ifo 79.2 mt mgo 5.1 mt
Note:proceeding to north west.we cant stay more at anchorage due to oman coast guard rules.we are looking
any safe place for waiting and passing the gale
From: 23439684.inmc@skyfile-C.com
Sent: 30 June 2011 15:04
To: ops@newmar.com;
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 0978976]
Subj:top urgent pls give answer
Fm: Gloria
Sear sir
30.06.2011 1150 utc vessel is underway. I kindly inform you due to bad weather I can not wait at drift.pls
urgently inform me what I must do?if you can not say anything I will proceed to north I must save my cargo
and vessel as captain.if you want avoid the problems urgently answer us.otherwise nobody hold me
responsible from anything. Pls do not stay me alone and share you advise…I say again pls give answer us
urgently…
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From: 23439684.inmc@skyfile-C.com
Sent: 30 June 2011 14:09
To: ops@newmar.com;
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 0856743]
Fm:Gloria
Dear sir
Oman coast guard said us “you can not stay here without agent, urgently heave up anchor and leave from
here”. Due to this reason I will proceed to muscat.
When we will underway I will inform you
From: 23439684.inmc@skyfile-C.com
Sent: 30 June 2011 17:47
To: ops@newmar.com;
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 1068754]
Fm: Gloria
Good days dear andrey
30.06.2011 1440 utc vessel begin to drift. We are open from shore 15 nm, I spoke with coast guard commander
via mobile phone and take special permission for waiting here.now we are rolling and pitching but swell not
roughly here, I think you are not care but crew, cargo and vessel is safe now don’t worry. But I want sadly say
you during to this hardly time you are not help us note care us, this is not acceptable as per the trade rule and
human rule, due to this reasons I hold you as charterer fully responsible for all consequences which may arisen
there from.
From: 23439684.inmc@skyfile-C.com
Sent: 30 June 2011 09:13
To: ops@newmar.com;
Copy: fleet@dragun.com
Subject: [IMN: 2349684 REF: 0684256]
Subj:top urgent
Fm:Gloria
Good morning dear sir
Oman coast guard called us and they say you can not stay in oman coast more then 24 hour without any
authorized local agent.pls try arrange authorize agent at oman,otherwise they not give permission for stay
anchor,in this situation my vessel and my cargo can see heavy damage at open sea.
Secondly,our mgo qnty is 5.3 mt presently,as per the forecast rep sea not will calm before of 2 july, this that men
I stay here more 3 day.my mgo quantity will be at 2 july less than 4 mts,and I have 1300 nm to djibuti from
here.this is a big risk for us…pls be carefully,and think safety for us.
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APPENDIX 2
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