BLUEBLOCK: Trafigura loses $2 case over ship detained in Port Harcourt

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Trafigura loses $2 case over ship detained in Port Harcourt

Monday, July 23, 2012 | Posted by Blueblock | | Edit Post

UK law firm, Andrew Jackson, has won a $2m case in the Commercial Court in London on behalf of Great Elephant Corporation ("the shipowners") against Trafigura Beheer BV ("Trafigura"), the charterers of Crudesky, one of Great Elephant's vessels, for demurrage in a $2 million judgment.

Trafigura chartered the Crudesky from the shipowners to lift a cargo of oil from Akpo FPSO Terminal located offshore of Port Harcourt. When the vessel arrived at the Total terminal, the Department of Petroleum Resources (DPR) official was absent. Total's lifting supervisor apparently contacted the DPR office in Port Harcourt to ask for directions and was told to begin loading even without the DPR official being present. As a result, Total cut the lock securing the meter for measuring the amount of crude oil being loaded and proceeded to load the vessel.

After the completion of loading, the DPR revoked the clearance and the navy prevented the vessel from leaving for 44 days accusing Total of "economic crimes". Total was ordered to pay $12 million in fines. After the fine was paid, the Crudesky was allowed to sail back to the Akpo terminal, where cargo documents were put on board on October 16 - more than 44 days after the three hours allowed in the charter agreement had expired.

Andrew Jackson, on behalf of its client, claimed against Trafigura for demurrage. David Hall of Andrew Jackson said:" We claimed demurrage. Trafigura denied that the vessel was awaiting cargo documents, and said that this was a "Restraint of Princes", which cut the demurrage rate by half pursuant to clause 21 of the charterparty."

He added: "The case provides an extreme example of how long a vessel can be "awaiting cargo documents"; in this case three hours was allowed by the charter party for the paperwork to be completed, but it took over six weeks.

Source: NogIntelligence