moot scenario (v3 - murdoch university...off hire bunker and condition survey to be carried out at...

INTERNATIONAL MARITIME LAW ARBITRATION MOOT

2019

IMLAM Moot organised by School of Law, Murdoch University, Australia 2019 Hosts- School of Law, Erasmus University, Rotterdam

MOOT SCENARIO (v3)

RELEASED 25 March 2019

This is the v3 (complete) version of the Moot Scenario, issued 25 March

2019.

The schedule of important dates and other information for competitors can be found at the website: http://www.murdoch.edu.au/School-of-Law/International-Maritime-Law-Arbitration-Moot/

Please follow us on twitter to ensure you are kept informed of breaking news. @IMLAMMurdoch

Teams are reminded of the following rules:

Rule 2.5: …Teams are not to introduce additional facts or evidence into the moot unless they are a logical and necessary extension of the given facts.

Rule 4.4 The [memoranda marking] panel will take an unfavourable view of arguments which are based on facts not found in the problem or the clarifications and which are not logical or necessary extensions of the given facts.

2019 IMLAM Scenario V3 25.3.19 1

http://www.murdoch.edu.au/School-of-Law/International-Maritime-Law-Arbitration-Moot/

NYPE2015 can be found here: http://www.asba.org/wp-content/uploads/2015/10/NYPE_2015-sampleweb.pdf


https://clicktime.symantec.com/a/1/uo71syKzyEPP_G7plHBaEkVUPL8Fy3qO7hlF57bRq1M=?d=bUqIni2PyxWlSKdT2kDHVx6TnQqHZvWeARtl3eBc9gPkQy5JccmktV9wfVl0B8Ff5F1hf2_qECZdDwigxuP_PzlZ13TfYeRPzPxEtmQalAEt4K4PQjSBCIl921ieYKgtePrWEEXCJnel6NI8BGSEm_2z2obqesB8bvERqdehP4jPdgODl7ZrVlns0EcZvKIPFrdO7qdKf9HG4GUaqpHr_u7eAcpWM_G0qBPYSCnMEY4SOVmdMS6nOmpiX8REqkNPlln4pCWT4XENgV0se1ng9Ht7ikng6nYulz8h6F-zGLA-cZbAHCARf-AdfE7GMpI7i74gRDTDM0Vt435JffKJ2vZ_kkdeCagPH_-3o1OUvPEHmf0SthIvNaSxt7T9ThU%3D&u=http%3A%2F%2Fwww.asba.org%2Fwp-content%2Fuploads%2F2015%2F10%2FNYPE_2015-sampleweb.pdf

https://clicktime.symantec.com/a/1/uo71syKzyEPP_G7plHBaEkVUPL8Fy3qO7hlF57bRq1M=?d=bUqIni2PyxWlSKdT2kDHVx6TnQqHZvWeARtl3eBc9gPkQy5JccmktV9wfVl0B8Ff5F1hf2_qECZdDwigxuP_PzlZ13TfYeRPzPxEtmQalAEt4K4PQjSBCIl921ieYKgtePrWEEXCJnel6NI8BGSEm_2z2obqesB8bvERqdehP4jPdgODl7ZrVlns0EcZvKIPFrdO7qdKf9HG4GUaqpHr_u7eAcpWM_G0qBPYSCnMEY4SOVmdMS6nOmpiX8REqkNPlln4pCWT4XENgV0se1ng9Ht7ikng6nYulz8h6F-zGLA-cZbAHCARf-AdfE7GMpI7i74gRDTDM0Vt435JffKJ2vZ_kkdeCagPH_-3o1OUvPEHmf0SthIvNaSxt7T9ThU%3D&u=http%3A%2F%2Fwww.asba.org%2Fwp-content%2Fuploads%2F2015%2F10%2FNYPE_2015-sampleweb.pdf

Chatter Account

@Panthershippinginc

1 January 2016

A very happy New Year to all our customers and followers on Chatter - the best way to reach our market worldwide.

Great news to start the New Year – just concluded the paperwork for another tween decker to join our fleet of bulk cargo vessels servicing the medium term time charter market. Expecting to take delivery soon.

Chatter Account

@Panthershippinginc

1 March 2016

Customer Update – Great news - now taken delivery of THANOS QUEST – the vessel will start operations in the next few weeks. Looking to fix for 3-5 years. Contact Captain Bob Banner at Hulk Hulls for more information.


From: Clark Kent [email protected] To: Omega Chartering [email protected] Date: 18 March 2016 Aris / Clark MV THANOS QUEST / OMEGA Recap of fixture dated 18 March 2016

• MPP dry cargo ship • strengthened for heavy cargoes • equipped for carriage of containers • heavy lifts up to 160 mt • 100% hatch opening

Vessel’s Particulars: Type – MPP, project, strengthened for heavy cargoes. Built – May 2012 – Herren Shipyard Class – Lloyd Register (Ice class 1A) Flag – Antigua and Barbuda Length over all 146.25 mtr Length B/P 136.99 mtr Breadth 20.10 mtr Depth moulded 11.45 mtr Draught max. 8.25 mtr Deadweight SSW 13.563 mt (incl. twd panels abt. 350 mt) GT / NT 9963 / 4937 Ice class 1 A PTC 27 mt 1. Vessel is box shaped with removable tweendeck panels installable 2 heights, usable as bulkheads. Holds / Hatches 100% opening Hold # 1 Hold # 2 2 Length (m) 26.90 69.75 Beam (m) fore 5.20 aft 15.77 fore 15.77 aft 10.45 Height w/o twd panels (m) 12.09 12.09 Height with twd panels up position hold/twd (m) 5.61/5.58 5.61/5.58 Height with twd panels low position hold/twd (m) 3.01/8.18 3.01/8.18 Tank top (m2) 280 1058 Tweendeck (m2) 348 1100 2. Hold capacities (m3/cbft) Hold # 1 without twd panels 3.990 m3/140850 cbft Hold # 2 without twd panels 13.252 m3/467790 cbft Total cargo holds without twd panels 17.242 m3/608640 cbft Container capacity (TEU) 312 Under deck 400 Total 712 3. Deck Strength.


mailto:[email protected]

Tank top – 18 mt / m2 Tweendeck – 4 mt / m2 Hatch covers – 1.75 mt / m2 4. Speed / consumption 4.1 Speed – 14.00 knots with wind max. Beaufort 3 and sea max. Douglas 2 4.2 Consumption – IFO 380 cst about 21 mt 4.3 Port consumption MGO: idle about 1.00 mt, cranes working about 2.00 mt. 5. Machinery Cranes: 2 x 80 SWL – port side cranes (coupled upto 160 mt). SWL 80 mt / 14 m, SWL 60 mt / 19 m. Ventilation Type – mechanical exhaust ventilation: Hold # 1: 2 x 30.000 m3/hr Hold # 2: 4 x 50.000 m3/hr. All details about + + + OWNERS’ FULL STYLE ------------------ PANTHER SHIPPING INC 80 BROAD STREET, MONROVIA, LIBERIA EMAIL: [email protected] MANAGERS’ FULL STYLE: HULK HULLS DOUGLAS ISLE OF MAN EMAIL: [email protected] VSL’S CONTACT DETAILS: MASTER: CAPTAIN ROGERS VSL IS CURRENTLY DISCH BULK CARGO AT WEST COAST PORT AREA WHERE SHE IS EXPECTED TO COMPLETE DISCHARGE 28.03.2016 / AGW / WP / UCE. VSL IS WITH THE HEAD OWNRS, NO CHAIN FOR, ACCOUNT: OMEGA CHARTERING LIMITED, LIECHTENSTEIN DEL WEST COAST ATDNSHINC -LAYCAN 25-30 MARCH 2016 00:01/24:00HRS RESPECTIVELY -FOR 1 TCT/1 LOADED LEG VIA UK (EXCLUDING EUROPE) TO WAHANDA RANGE



WITH BULK HARMLESS PRODUCTS ONLY, ALWAYS EXCLUDING ALL KIND OF EXPELLERS AND PELLETS, DRY DISTILLER GRAINS, DRY DISTILLER GRAINS SOLUBLES CGOES AND ANY BY-PRODUCTS, BULK RICE AND ANY CARGO REQUIRING CO2 – ELECTRICAL VENTILATION – A60 INSULATION, APPENDIX B CERTIFICATE, TRADING ALWAYS VIA SPS SBS SAS ALWAYS WITHIN IWL/INL AND ALWAYS SAFELY AFLOAT, SAFELY ACCESSIBLE, ALWAYS VIA ICE FREE PORTS/PLACES IN/OUT OF GEOG ROTATION AND ALWAYS IN STRICT ACCORDANCE AS PER OWNRS’ CARGO/TRADING EXCL AND VSL’S CHARACTERISTICS CARGOES TO BE LOADED/STOWED/TRIMMER/CARRIED/DISCHARGED ALWAYS IN STRICT ACCORDANCE WITH ALL LOCAL LAWS AND NATIONAL REGULATIONS AND ALWAYS IN COMPLIANCE WITH INTERNATIONAL REGULATIONS INCL THE IMSBC CODE, AS MAY BE AMENDED FROM TIME TO TIME, SOLAS, ALL IMO REGULATIONS/RECOMMENDATIONS AND VSL’S CLASS. -DURATION ABT 50-55 DAYS WOG. UNDER THIS C/P VSL TO CALL ONLY UK (EXCLUDING EUROPE) FOR LOADING /BUNKERING AND WAHANDA, SKOREA,JAPAN (EXCLUDING FUKUSHIMA ONLY), VIETNAM, IDONESIA, MALAYSIA, TAIWAN, PHILLIPINE ISLANDS FOR DISCHARGING/BUNKERING ALWAYS ALLOWED ALL OTHER COUNTRIES,PORTS,PLACES ARE HEREBY SPECIFICALLY EXCLUDED. CIS PACIFIC, NORTH KOREA, DIRECT TRADE BETWEEN CHINA AND TAIWAN OR VV, IS SPECIFICALLY EXCLUDED. UNDER THIS C/P VSL TO LOAD ONLY BULK HARMLESS PRODUCTS, ALL OTHER CGOES ARE HEREBY EXCLUDED. -REDEL DLOSP 1SP WAHANDA RANGE, PORT IN CHRTRS OPTION ,ATDNSHINC -HIRE USD 7500 DAILY INCLOT CHTRS TO PAY 1ST 45 DAYS HIRE WITHIN 3 BANKING DAYS AFTER VESSEL’S DELIVERY, SUBSEQUENTLY HIRE TO BE PAYED EVERY 15 DAYS IN ADVANCE. LAST HIRES AS PER REALISTIC REDELIVERY NOTICES. CHRTRS WILL NOT PAY ANY BUNKERS ON DELY BUT THEY GUARANTEE THAT THEY WILL REPLENISH THE VESSEL WITH BUNKERS BEFORE HER REDELIVERY TO THE OWNRS IN ORDER BUNKERS ON REDELIVERY TO BE ABT THE SAME AS WITH BUNKERS ON DELIVERY. BANK DETAILS: ------------------ TO BE ADVISED -BOD ABT 1,500 MTS HSFO AND ABT 175 MTNS LSMGO BUNKERS ON REDELY TO BE ABT THE SAME AS ACTUALLY ON BOARD ON DELIVERY BUNKER PRICES SAME BOTH ENDS USD 315 PMT HSFO AND USD 500 LSMGO –


CHARTS WILL NOT PAY FOR BUNKERS ON DELIVER BUT CHRTRS GUARANTEE THEY WILL REPLENISH BUNKERS PRIOR REDEL. ANY MINOR DIFFERENCES BETWEEN DEL/REDEL QTIES TO BE SETTLED BY CHRTRS OR OWNERS AS THE CASE MAY BE IMMEDIATELY AFTER VSL’S REDEL AT THE AGREED C/P PRICES WHICH APPLY AT BOTH ENDS. OWNERS HAVE THE OPTION TO BUNKER THE VESSEL AT ANY TIME DURING THE CURRENCY OF THIS C/PROVIDED SAME DOES NOT INTERFERE WITH CHRTS’ OPERATIONS/CGO INTAKE. CHRTRS OPTION TO STEM 8217 2005 IF 2010 NOT AVAILABLE -CHRTRS HAVE THE OPTION TO REDELIVER THE VESSEL WITH UNCLEANED HOLDS AGAINST A LUMPSUM PAYMENT OF USD 5000 ILOHC EXCL REMOVAL OF DUNNAGE/DEBRIS/ETC AND COLLECTION AND DISPOSAL OF FUMIGANT MATERIALS WHICH TO BE COLLECTED AND DISPOSED BY EXPERIENCED, CERTIFIED SHORE LABOUR AT CHRTRS TIME, RISK AND EXPENSE AND CHRTS CONFIRM SAME WILL BE REMOVED FROM THE SHIP PRIOR REDELY. -CHRTRS TO PAY A LUMPSUM OF USD 1500 PER 30 DAYS OR PRO RATA FOR ALL VICTUALLING/GRATITIES AND COST OF CABLES. -NON PRESENTATION OF BILLS OF LADING AT DISCH CLAUSE TO BE AS PER OMEGA RIDER CL 74 -HOLDS CONDITION CLAUSE TO BE AS PER OMEGA RIDER CLAUSE 60 -ON HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT PRIOR OR AT DLY PORT. OFF HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT AT LAST DISCHARGE PORT/PLACE OF REDELIVERY. CHARTERERS & OWNERS TO JOINTLY APPOINT A LOCAL INDEPENDENT SURVEYOR FOR PERFORMING THESE SURVEYS. TIME AND EXPENSES FOR THESE SURVEYS TO BE SHARED EQUALLY BETWEEN OWNERS AND CHARTERERS. -3.75PCT ADDCOM + 1.25PCT BROKERAGE TO BRS -OTHERWISE OMEGA RIDER CLAUSES WITH LOGICAL AMENDMENTS, ALTERATIONS IN ACCORDANCE WITH AGREED MAIN TERMS -OTHERWISE NYPE 2015 FORM TERMS TO APPLY AMEND CLAUSE 8(a) TO ADD WORDS “AND RESPONSIBILITY” AFTER “UNDER THE SUPERVISION” END PLS CFM ABV IN LINE WITH YR NOTES. TKS YR EFFORTS/SUPPORT IN CONCLUDING THIS FIXTURE Thanks and best regards, Clark Kent Fixing Team Clark Kent & Sons [email protected]



OMEGA CHARTERING RIDER CLAUSES 28. Description: Vessel’s Particulars: Type – MPP, project, strengthened for heavy cargoes. Built – May 2012 – Herren Shipyard Class – Lloyd Register (Ice class 1A) Flag – Antigua and Barbuda Length over all 146.25 mtr Length B/P 136.99 mtr Breadth 20.10 mtr Depth moulded 11.45 mtr Draught max. 8.25 mtr Deadweight SSW 13.563 mt (incl. twd panels abt. 350 mt) GT / NT 9963 / 4937 Ice class 1 A PTC 27 mt 1. Vessel is box shaped with removable tweendeck panels installable 2 heights, usable as bulkheads. Holds / Hatches 100% opening Hold # 1 Hold # 2 2 Length (m) 26.90 69.75 Beam (m) fore 5.20 aft 15.77 fore 15.77 aft 10.45 Height w/o twd panels (m) 12.09 12.09 Height with twd panels up position hold/twd (m) 5.61/5.58 5.61/5.58 Height with twd panels low position hold/twd (m) 3.01/8.18 3.01/8.18 Tank top (m2) 280 1058 Tweendeck (m2) 348 1100 2. Hold capacities (m3/cbft) Hold # 1 without twd panels 3.990 m3/140850 cbft Hold # 2 without twd panels 13.252 m3/467790 cbft Total cargo holds without twd panels 17.242 m3/608640 cbft Container capacity (TEU) 312 Under deck 400 Total 712 3. Speed / consumption 3.1 Speed – 14.00 knots with wind max. Beaufort 3 and sea max. Douglas 2 3.2 Consumption – IFO 380 cst about 21 mt 3.3 Port consumption MGO: idle about 1.00 mt, cranes working about 2.00 mt. 4. Machinery Cranes: 2 x 80 SWL – port side cranes (coupled upto 160 mt). SWL 80 mt / 14 m, SWL 60 mt / 19 m. Ventilation Type – mechanical exhaust ventilation: Hold # 1: 2 x 30.000 m3/hr Hold # 2: 4 x 50.000 m3/hr. All details about


+ + + OWNERS’ FULL STYLE ------------------ PANTHER SHIPPING INC 80 BROAD STREET, MONROVIA, LIBERIA EMAIL: [email protected] MANAGERS’ FULL STYLE: HULK HULLS DOUGLAS ISLE OF MAN EMAIL: [email protected] VSL’S CONTACT DETAILS: MASTER: CAPTAIN ROGERS VSL IS CURRENTLY DISCH BULK CARGO AT WEST COAST PORT AREA FROM WHERE SHE IS EXPECTED TO SAIL 28.03.2016 / AGW / WP / UCE. VSL IS WITH THE HEAD OWNRS, NO CHAIN 29. Plans: Deleted. 30. Weather Routing Clause: The words, “good weather conditions” in line 20 of the Charter shall mean any weather condition in which the wind does not exceed force 4 at the Beaufort Scale and max sea wave height 1.25 M and max swell wave height 1.25 M and no adverse current in accordance with Vessel’s description. Weather reports to be taken from Vessel’s deck log and from weather routing company, if so elected by Charterers. The Charterers have the liberty to supply an internationally recognised independent weather routing service to the Vessel during the voyage (e.g. WNI or AWT) the costs of which are to be for Charterers’ account. The Master is to comply with reporting procedure of this service selected by Charterers. However, the final decision always to be made by the Master when considering the safety of the Vessel, crew and cargo. Evidence of wind and sea conditions to be taken from Vessel’s log and weather service reports. In case of consistence discrepancy between the two, Charterers and Owners to jointly and mutually appoint another neutral weather routing agency to study the logbook and ocean route analysis report. Such neutral weather routing agency/bureaus report shall be binding upon both parties. The neutral weather routing service agency/bureau shall be an independent reputed and widely used weather routing bureau/agency who offer weather routing services as principal business activity. Charterers shall be entitled to instruct the Vessel to steam at reduced or increased speed for commercial reasons subject to constraints imposed by the physical characteristics of the Vessel’s machinery. (See also Clauses no. 28). 31. Delivery Notices: On fixing and then daily basis. Owners to give notices of Vessel’s eta loading port to all parties concerned.



32. On-Hire and Off-Hire Bunkers and Condition Surveys: On hire bunker and condition survey to be carried out prior or at delivery port. Off-hire bunker and condition survey to be carried out at last discharge port/place of redelivery. Charterers and Owners to jointly appoint a local independent surveyor for performing these surveys. Time and expenses for these surveys to be shared equally between Owners and Charterers. 33. Deleted. 34. Return Insurance: Charterers to have the full benefit of any lay-up or return of insurance premiums by reason of Vessel being in port for a minimum period as provided in her insurance policies subject to settlement of disbursement paid by owners required due to such lay-up, including but not limited to reactivation cost. 35. Extra Insurance: Any additional insurance levied on Vessel and any time lost by reason of the Vessel’s age, flag, Ownership class or condition to be borne by owners. Any additional insurance premium levied on cargo to be borne by Charterers. 36. House Flag/Markings/Funnel: Charterers to have the privilege of flying their own house flag. 37. Deleted. 38. Deleted. 39. Cancellation Due to Extended Off-Hire: If the Vessel is off-hire consecutively for thirty (30) days or more due to any cause(s) other than Charterers’ responsibility, the Charterers shall have the option to cancel this Charter Party, without prejudice to any other rights, remedies or claims which the Charterers may have. Such option shall be exercised by the Charterers by giving written notice of cancellation to the Owners and the Vessel shall be redelivered as soon as practicable thereafter once free of cargo properly and duly discharged under any applicable Contract of Carriage. 40. Deleted. 41. Deleted. 42. Stevedore Damage: Charterers are not responsible for stevedore or other damage to the Vessel unless the Charterers or their Agents are notified in writing by the Captain or Owners’ Agents within 24 hours of occurrence of damage, except in case of hidden damage which to be notified as soon as practicable after discovered prior to redelivery. Should a stevedore damage be caused, Captain is obliged to try to let stevedore repair the damage and to try to settle the matter directly, with them in the first stage. Failing this, Captain will endeavour to obtain signed acknowledgement of the damage and liability for the same of the stevedore. Any stevedore damage affecting seaworthiness and/or trading capability of the Vessel and/or Vessel’s class


to be repaired at the Charterers’ expense and time. The Owners to have the option to accept redelivery without Charterers repairing any minor stevedore damage, and in such case the Charterers to pay for cost and time, estimated by joint off-hire surveyor, or repairing such stevedore damage unless repairs are effected simultaneously with dry docking or other repairs for the Owners’ account, and no loss of time incurred if such repair completes within Owners’ work. 43. Hold Ladders: Vessel’s accommodation and pilot ladders as well as hold ladders and accesses thereto are to be kept in good repair so as to comply with the safety requirements at all ports of call. Any delays to the Vessel and / or her operations as a result of non-compliance with this clause to be considered as off-hire and any expenses incurred to be for Owners’ account. 44. Quarantine: Owners shall be liable for any delay in quarantine arising from the Master, Officers, or crew having communication with the shore or any infected area without the written consent of Charterers or their Agents, also for any loss of time through detention by customers or other authorities caused by smuggling or other infractions of local law on the part of the Master, Officers or crew. Any time lost by such causes may be deducted as off-hire. 45. Fumigation: Vessel to be in possession of valid Deratization or exemption certificate throughout the duration of the Charter Party. 46. Safety and Health Regulations: Owners warrant that Vessel shall be in possession of the necessary certificates to comply with all safety and health regulations and all current requirements at all ports of call during the currency of this Charter, without hindrance or delay. 47. Australian Regulations: Vessel will comply with and be maintained in accordance with the requirements of the commonwealth of Australia loading and unloading safety measure regulations. Owners confirm that the Vessel is fitted, and will be fitted throughout the duration of this Charter, with hold ladders that conform to the regulations of the Waterside Workers Federation of Australia. 48. Tonnage Certificate: Owners will obtain an official International Tonnage Certificate prior to delivery and required renewals throughout the Charter period, the current valid certificate being on board the Vessel at all times. In the event extra charges are incurred by reason of lack of International Tonnage Certificate, same shall be for Owners’ account. 49. Cargo and Equipment: Owners guarantee that throughout this Charter Vessel’s equipment shall comply with regulations and/or requirements in effect at all ports of call, canals and countries in which Vessel will be employed. Owners also guarantee that Vessel shall be at all times in possession of a valid and up-to-date certificate onboard to comply with such regulations and/or requirements. If stevedores, longshoremen or other labourers are not permitted to work by reason of any failure of the Captain, Officers and/or their Agents to comply with such regulations or by reason that Vessel is not in possession of such valid and up-to-date certificate(s), the Owners shall take immediate corrective measure. Charterers may suspend hire for time lost thereby and any extra expenses including stevedores’ stand-by time shall be for Owners’ account. 50. Canal transit:


During the full currency of this Charter Party, Owners shall keep the Vessel fully capable and equipped to transit the Suez Canal and Panama Canal without delay in accordance with the rules and regulations governing navigation of the canals mentioned above and promulgated from time to time by the local authorities. 51. Flag Restrictions: Owners shall be responsible in the event of loss of time, delay, and/or impossibility of or restrictions on the full working or employment of the ship, including but not limited to any action whatsoever taken by any third parties, as a result of or in connection with the country or registration of the ship, her flag and/or the terms and conditions upon which the crew of the ship are engaged or employed by Owners. The ship shall be off-hire for any time lost and any and all expenses resulting directly to Charterers by reason of or in connection with these causes may be deducted from hire. If Charterers incur additional port expenses in the normal course of trading the Vessel, as a direct result of Vessel’s flag, same is to be for Charterers’ account. 52. Third Party Suits: Should the Vessel be delayed, detained or arrested during the currency of this Charter Party at the suit of any party having or purporting to have a claim against or any interest in the Vessel, Master, her crew or Owners, except acts attributed to Charterers, hire under this Charter Party shall not be payable in respect of any period during which the Vessel is not fully at Charterers’ disposal and any reasonable consequential time and expenses resulting from same which Charterers may incur, are to be for Owners’ account. 53. inter-Club Agreement Owners agree that liability for cargo claims, as between Owners and Charterers, shall be apportioned as specified by the Inter-Club New York Produce Exchange Agreement effective from February 20, 1970 and 1996 as amended September 2011 and any amendments thereto. 54. P & I Cover: Vessel shall be entered and will remain entered during the full currency of this Charter with a recognised first class P & I Club and shall carry full P & I cover, including cargo to cover Owners’ liability and pollution cover. Such cover shall be at the expense of the Owners current required coverage for oil pollution liability is subject to change depending on industry insurance coverage and additional cost thereof, if any in future, shall be discussed between Owners and Charterers. If the Owners fail to maintain P & I cover as provided for in this clause, in the manner described, Charterers may place equivalent insurance at Owners’ expense and deduct the cost of such insurance from Vessel’s hire. Charterers to have the benefit of Owners’ P & I cover insofar as the rules permit. Owners have Vessel covered with P & I Club. Charterers’ P & I Club SENTINEL. 55. Financial Responsibilities in Respect of Pollution: Owners warrant that throughout the currency of this Charter they will provide the Vessel with the following certificates: a) Certificates issued pursuant to Section 311(p) of the Clean Water Act (also known as the U.S. Federal Water Pollution Control Act), as amended (Title 33 U.S. Code, Section 1321 (p)) or any other certificates which may be required by United States Federal or states legislation enacted at any time during the currency of this Charter. b) Certificates required by other national or local government evidencing financial responsibility in the event of discharges of oil or other hazardous substances.


In no case, shall Charterers be liable for any damages, resulting from Owners’ failure to obtain or have on board such certificates or Owners’ failure to comply in any other way with existing or future laws enacted by any national or local governments. Any time lost by reason of Owners’ non-compliance shall be off-hire and Owners shall hold Charterers harmless against any and all consequential loss, damage, expense or claims. 56. Pollution: Owners warrant that the Vessel is entered with the protection and indemnity insurer listed in Clause No. 54 for the full coverage available for marine pollution risks. When an escape or discharge of oil or other hazardous substances occurs from the Vessel and causes or threatens to cause pollution damage, or when there is the threat of an escape or discharge of oil or other hazardous substances (i.e. a grave or imminent danger of the escape or discharge which, if it occurred, would create a serious danger or pollution damage), then Owners shall immediately undertake such measures as are reasonably necessary to prevent to minimise such damage or to remove the threat. Owners shall keep Charterers advised of the nature and result of any measures taken by them, and, if time permits, the nature of the measures, Charterers may, at their option, upon notice to Owners or the Master, do so themselves and any measures taken by Charterers shall be deemed taken on Owners’ authority and as Owners’ Agents and shall be at Owners’ expense except to the extent that any such pollution damage or threat was caused or contributed to by Charterers. 57. Bunkering Privileges: Owners certify that the Vessel is and will remain so throughout the duration of this Charter, eligible for full bunkering privileges in the United States of America and its territories and possessions, under all present and future United States Laws and/or regulations and is not, nor will be restricted, as to bunkering any other countries or ports of call during this Charter. 58. Deleted. 59. Deleted. 60. Hold Cleaning: Charterers have the option to redeliver the Vessel with uncleaned holds against a lumpsum payment of USD 5000 in lieu of holds cleaning excluding removal of dunnage / debris / etc and collection and disposal of fumigant materials which to be collected and disposed by experienced, certified shore labour at Charterers’ time, risk and expense and Charterers confirm same to be removed from the ship prior redelivery. 61. Redelivery Dirty: The Vessel is to be redelivered with all cargo holds clean-swept and washed down. Charterers to pay Owners lump sum U.S$ 5,000.- (five thousand Dollars) in lieu of hold cleaning on redelivery, excluding removal of any dunnage/debris/lashing, which to be removed by Charterers at any expense prior to redelivery.


Immediate Hold Cleaning On completion of discharge for each cargo, Vessel’s crew shall render customary assistance in cleaning cargo holds in preparation for next cargo, if required by Charterers and provided not prevented by shore regulations. Such cleaning to be performed while Vessel is en route to next loading port always provided that this can be safely done, weather permitting same, and that the duration of the voyage is sufficient to allow the task to be completed. The cost of any materials/supplies used in cleaning always to be for Charterers’ account including fresh water. If chemicals are required to get holds clean / load ready for intermediate cargo then such chemicals are to be first approved by Master / Owners and always for Charterers’ account, application of chemicals to be made strictly as per Master’s instructions. Charterers shall pay an amount of $ 900 (nine hundred Dollars) United States Currency per hold cleaned. Such cleaning will be done as best as possible but without guarantee that Vessel’s holds will be sufficiently cleaned and accepted on arrival at loadport. Vessel shall not be placed off-hire in the event of failing next holds inspection survey due to any reason whatsoever and Owners shall not be held responsible for any and all consequences arising therefrom Charterers and not to negotiate with crew. Throughout the currency of this Charter Party and at redelivery, the Charterers shall remain responsible for all costs and time, including deviation, if any, associated with the removal and disposal of cargo related residues and / or hold washing water and / or chemicals and detergents and / or waste as defined by MARPOL ANNEX V, Section 1 or other applicable rules relating to the disposal of such substances. 62. Deleted. 63. Lightering and Top-Off: The Vessel shall with notice to Owners in advance carry out lightering and top-off operations, by arriving in the open safe operational areas with her hold ready to be lightened/topped off, weather permitting, and shall assist by having her crew take and/or pass mooring/unmooring of the ocean Vessel alongside it. While alongside, the Vessel is to carefully tend all moorings and frequently verify her draft. Furthermore, the Master shall at all times operate fully with Charterers and/or their Agents to expedite the transfer of cargo and the Vessel shall maintain a draft, when feasible, as requested by the Master of the lightening/top-off operations however, Vessel to provide free of charge any fenders that may be on board and if it is insufficient, Charterers shall supply necessary fenders additionally to the Master’s satisfaction. The area used for lightening/top-off operations is to be a customary and usual area where such operations normally take place. The Master may at any time order his Vessel to sail if he considers it unsafe for her to remain double banked. 64. Ballasting/Deballasting: Vessel to ballast/deballast clean water ballast tanks only including floodable hold(s), if required by Charterers or their Agents at any time during loading and/or discharging, free of expense to Charterers, but in Charterers’ time. All ballasting/deballasting shall be at the discretion of Master having due regard to stability and seaworthiness of the Vessel. Whenever practicable


or required by law at the next port of call, the Vessel is to replace ballast taken in port or coastal waters with clean sea-water ballast. Owners guarantee that the Vessel will always be maintained in safe condition during ballast operations. If at any time solid ballast is required, all expenses for same, including time used for loading and discharging such ballast, bunkers consumed during such period, and time used for cleaning holds after the discharge of such solid ballast, shall be for Charterers’ account. The Vessel is capable of ballasting No. 4 hold. In such instances Owners, Master and crew will do their utmost to deballast and dry such hold as quickly as possible. 65. Deleted. 66. Inspection Rights: The Charterers shall have the right and privilege of having their representatives visit the Vessel while in port or at sea with Charterers’ LOI, provided written pre-notice from Charterers is given and without interference with Vessel’s normal operation. Charterers’ representatives shall have access to the ENTIRE Vessel (excluding accommodation spaces and act always under Master’s supervision) and the Master, Officers and crew of the Vessel shall co-operate with the render any and all reasonable assistance that the Charterers’ representatives may require. Refusal by the Owners or the Master, Officers or crew to allow such visits or to co-operate, as required by this provision, shall be considered as a breach of Charterers’ orders and Vessel shall be off-hire from the time of such refusal. 67. Deleted. 68. Shipboard Personnel and Their Duties: a) Upon delivery and throughout the duration of this Charter: i) Vessel shall have a full and efficient complement of Master, Officers and crew for a Vessel of her tonnage and design, who shall in any event not be less than the number required by the laws of the flag state and who shall be trained to operate the Vessel and her equipment competently and safely; ii) All shipboard personnel shall hold valid certificates of competency in accordance with the requirements of the law of the flag state. iii) All shipboard personnel shall be trained in accordance with the relevant provisions of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978, and/or other rules or regulations that may be promulgated from time to time. iv) There shall be on board sufficient personnel with a good working knowledge of the English language to enable cargo operations at loading and discharging places to be carried out efficiently and safely and to enable communications between the Vessel and those loading the Vessel to or accepting discharge therefrom to be carried out quickly and efficiently. b) Owners guarantee that throughout the Charter period the Master shall, with the Vessel’s Officers and crew, unless otherwise ordered by Charterers: i) Prosecute all voyages with the utmost despatch; ii) Render all customary assistance.


69. Deleted. 70. Services: Hire to include but not limited to the following services from the Vessel’s Officers and crew: 1. Docking and undocking; 2. Shifting and warping of the ship during loading and/or discharging; 3. Bunkering; 4. a) Opening and closing of hatches in preparation for, during and after loading and discharging (including times when weather may adversely affect condition of cargo); b) The Officers and crew to shape up the Vessel’s hatches as much as possible as far as weather permits prior to Vessel’s arrival at loading and/or discharging port or place so as to immediately commence loading or discharging operations; 5. The crew are to sweep and/or wash the holds and any other cargo compartments between voyages to make the Vessel ready in every respect for the next cargo acceptable to competent authorities (See clause No. 60); 6. supervision, direction and control of loading and discharging; 7. All overtime of the Master, Officers and Crew; 8. When certain of the above services are prohibited by shore labour regulations, the Master shall comply with such regulations but shall use his best endeavours to perform the services at sea whenever possible 71. Representation: The Vessel to be equipped with INMARSAT (telex) and facsimile transceiver. Charterers to pay Owners a lump sum of U.S.$ 1,500.- (one thousand five hundred Dollars) per month or pro rata to cover communications and entertainment expenses payable within 15 (fifteen) days hire instalments. 72. Smuggling: It is strictly forbidden for the Master, Officers and crew to have any contraband or illegal merchandise on board and any such contraband or illegal merchandise found on board is to be confiscated by the Master. Any fines imposed on the Vessel, the Owners, Master, Officers, and crew or on the Charterers originating from the Master and/or members of the crew by a regulatory body, particularly as regard to smuggling will be for Owners’ account and the Charterers are not to be responsible for any consequences resulting from such an offence. The Owners guarantee that bonded stores will only be purchased with the permission of the Master. 73. Charterers’ Equipment: The Master is to keep a record of all Charterers’ gear, equipment, dunnage and/or stores supplied to the Vessel and to maintain same in good condition as when supplied as much as possible, time and expense therefore to be Charterers’ account. Such gear equipment, dunnage and/or stores to be returned to Charterers prior to redelivery of the Vessel to Owners, or if requested by Charterers at any time during the period of Charter,


condition as supplied (fair wear and tear excepted). Charterers to redeliver the Vessel with lashing materials as on board. 74. Letter of indemnity: If the original Bill(s) of Lading cannot be presented at discharge port, Owners/Master agree to discharge/release the entire cargo without presentation of the original bill(s) of Lading against Charterers’ LOI in Owners’ standard P & I form, as attached herewith, signed by Charterers only on fax prior to commencement of discharge, and the original letter to be couriered to Owners immediately, agreeing to fully indemnify and hold Owners and/or the Vessel and/or the Master and/or Agents harmless against any consequences resulting from the Vessel releasing cargo without presentation of the original Bills of Lading and also to remain fully responsible for all damages and/or consequences that may arise out of the release of the cargo as above stated. Split Bills of Lading Clause: Charterers and/or Agents are hereby authorised by Owners/Master to split Bills of Lading and/or issue ship’s delivery orders in negotiable and transferable form against the collection of the full set of original Bills of Lading. Delivery orders to conform to all terms and conditions and exceptions of the Bills of Lading. 75. Blacklist: Owners warrant that to the best of their knowledge the Vessel is not blacklisted by any country and they will not, during the currency of the Charter, cause the Vessel to be blacklisted by any country, except for case Vessel should be become blacklisted by any country for reason of port(s) called by Vessel earlier under this Charter Party. 76. Deleted. 77. Deleted. 78. Deleted. 79. Agency: Charterers’ Agents may act as Owners’ Agents to attend to minimal husbanding matters, such as handling mail, shore pass, taxi rides and minor stores requirements without agency fees. Any expenses actually incurred thereby shall be for Owners’ account. If Owners require activities such as, but not necessarily limits to, crew repatriations, hospitalisation, general average, major stores requirements, ship repairs, Owners are to either appoint their own Agents or to pay “Omega Chartering Limited, P.O. Box 911, Vaduz, Liechtenstein appointed Agents the normal additional agency fee and associated charges for any such husbandry, if so requested. 80. Arbitration/Litigation: Should any dispute arise between Owners and the Charterers, the matter in dispute shall be referred to three persons at London, one to be appointed by each of the parties hereto, and the third person by the two so chosen; their decision, or that of any two of them, shall be final and for the purpose of enforcing any award this agreement may be made a rule of the court. English law to apply. The arbitrators shall be commercial men conversant with shipping matters.


The Contact to be construed in accordance with English Law. Arbitration to be in London. 81. Titles: The titles to clauses and sub-Clauses of this Charter Party shall not in any way affect the interpretation thereof. 82. Lay-Up: The Charterers shall have right to order the laying-up of the Vessel at any time and for any period of time at a safe berth/anchorage and in such a manner as mutually agreed upon and acceptable to the Vessel’s hull Underwriters and in the event of any such lay-up, the Owners shall promptly take steps to effect all the economies in operating costs including insurance which may be possible and give prompt credit to the Charterers in respect of all such economies giving due regard for any activation expenses that Owners may incur for Charterers’ account. At the request of the Charterers, the Owners shall at any time provide an estimate of the economies which would be possible in the event of laying-up of the Vessel. Should the Charterers, having exercised the option granted hereunder, desire the Vessel to again be put into service, Owners shall, upon receipt of written notice from Charterers to such effect, immediately take steps to restore the Vessel to service as promptly as possible. The option granted to Charterers hereunder may be exercised one or more times during the currency of this Charter Party. Hire shall continue to be paid, net of the economies in operational costs and insurance referred to in paragraph one above, throughout the period of lay-up. All costs associated with placing the Vessel in lay-up, during the lay-up period and on reactivation are to be in Charterers’ time and expense. It is understood that hire over lay-up period will anyway be mutually discussed and agreed. 83. BIMCO Hull Fouling Clause for Time-Charter Parties to Apply with Sub-Clause (a) to Read as follows: (a) If, in accordance with Charterers’ orders, the Vessel remains at or shifts/sails within a place, anchorage and/or berth and/or port(s) for an aggregated period exceeding: (i) A period of 25 days in a tropical zone or seasonal tropical zone; or (ii) A period of 30 days outside such zones any warranties concerning speed and consumption shall be suspended pending inspection of the Vessel’s underwater parts including, but not limited to, the hull, sea chests, rudder and propeller. (b) In accordance with sub-Clause (a), either party may call for inspection which shall be arranged jointly by Owners and Charterers and undertaken at Charterers’ risk, cost, expense and time. (c) If, as a result of the inspection either party calls for cleaning of any of the underwater parts, such cleaning shall be undertaken by the Charterers at their risk, cost, expense and time in consultation with the Owners. (i) Cleaning shall always be under the supervision of the Master and, in respect of the underwater hull coating, in accordance with the paint manufacturers’ recommended guidelines on cleaning, if any. Such cleaning shall be carried out without damage to the Vessel’s underwater parts or coating. (ii) If, at the port or place of inspection, cleaning as required under this sub-Clause. (c) If not permitted or possible, or if Charterers choose to postpone cleaning, speed and consumption warranties shall remain suspended until such cleaning has been completed. (iii) If, despite the availability of suitable facilities and equipment, Owners nevertheless refuse to permit cleaning, the speed and consumption warranties shall be reinstated from the time of such refusal. (d) Cleaning in accordance with this Clause shall always be carried out prior to redelivery. If, nevertheless, Charterers are prevented from carrying out such cleaning, the parties shall, prior to but latest on redelivery, agree a lump sum payment in full and final settlement of Owners’


costs and expenses arising as a result of or in connection with the need for cleaning pursuant to this Clause. (e) Deleted. 84. Deleted. 85. Deleted. 86. Deleted. 88. Deleted. 89. Deleted. 90. Privacy: All negotiations and fixture to be kept strictly private and confidential. 91. Deleted. 92. Deleted. 93. In the event of the Vessel being boycotted by ITF, delayed or rendered inoperative by strikes, labour stoppages, or by any other difficulties due to Vessel’s flag, Ownership, crew, terms of employment of Officers or crew, or any other Vessel under the same Ownership, operation or control, all time lost is to be considered off-hire, and expenses and liability incurred thereby, to be for Owners’ account. 94. Deleted. 95. The Owners warrant that both the Vessel and the company (as defined in the ISM code) shall comply with the requirements of the ISM code. Upon request, the Owners shall provide a copy of the relevant Documents of Compliance (DOC) and Safety Management Certificate (SMC) to the Charterers. Loss damage, expense and/or delay caused by failure on the part of the Vessel or the company with ISM code shall be for the Owners’ account. 96. Charterers agree not to trade the Vessel to Gulf of St. Lawrence or St. Lawrence River between 1st January and 31st March in any given year. 97. Deleted.


98. Trading Exclusions: Under this Charter Party Vessel to call only West Coast USA (excluding the states of California and Alaska) or West Coast Canada for loading/bunkering and China, South Korea, Japan (excluding Fukushima only), Vietnam, Indonesia, Malaysia, Taiwan, Philippine Islands for discharging/bunkering always allowed all other countries, ports, places are hereby specifically excluded. CIS pacific, North Korea, direct trade between China and Taiwan or vice versa, is specifically excluded. 99. Deleted. 100. War Cancellation: If war breaks out between any two or more of the following countries: United Kingdom, U.S.A., C.I.S., People’s Republic of China and Japan, directly affecting the performance of this Charter, both Owners and Charterers shall have the option of cancelling this Charter whereupon Charterers shall redeliver the Vessel to Owners, if she has cargo on board after discharge thereof at destination, or, if debarred from reaching or entering it, at a near open and safe port as directed by Charterers, when the port where the Vessel stays could not be regarded as a safe port because of the major war, then the Vessel not to be redelivered until she enters into the safe zone outside the port. In all cases hire shall be paid until the Vessel’s redelivery. 101. Vessel burns marine diesel oil in main engine when manoeuvring/navigating in shallow/narrow waters, canals, rivers in and out of ports and shifting between berths. 102. Small Claims Clause: Notwithstanding anything to the contrary in this Charter Party, the parties agree that all arbitrations where the amounts in dispute does not exceed the sum of USD 100,000 shall be resolved in accordance with the Small Claims Procedure 2012 of the London Maritime Arbitrators Association (as amended from time to time). 103. For the purpose of computing hire payments, the time for delivery/redelivery shall be adjusted to GMT. 104. Deleted. 105. Deleted. 106. Deleted. 107. Deleted. 108. Deleted.


109. Deleted. 110. Deleted. 111. Deratting Certificate: The Vessel shall be delivered with valid deratting or deratting exemption certificate. If such certificate does not cover the whole period of this Charter, costs of renewal of certificate and fumigation if necessary, shall be for Owners’ account. Any detention and extra expenses incurred thereby shall be also for the Owners’ account. 112. Charterers to ensure that all dunnages supplied to the Vessel to be in compliance with latest USDA plan protection and quarantine requirements and relevant certificates to be supplied to the Master when calling U.S.A. 113. During the Charter period the Owners have the option to sell the Vessel after first obtaining Charterers’ prior consent of sale and the new Owners which not to be unreasonable withheld. Tripartite novation agreement to be signed by all three (3) parties guaranteeing new Owners will abide by all terms, conditions and exemptions of this Charter Party. Owners to give 3 months’ notice to Charterers. 114. Japanese Seaway Bill Clause: For trading to Japan, Charterers have the option to issue non-negotiable Seaway Bill in lieu of Bills of Lading, in which case Charterers instruct Master to release cargo without Bills of Lading and Letter of Indemnity. 115. Fumigation: Charterers have the liberty to fumigate the cargo for their account on board the Vessel either during loading, or after completion of loading or before or during discharge. Master/Owners not to clause Bills of Lading by reason of such fumigation. Collection and disposal of all fumigants materials, debris at discharging port to be performed by shore labour prior to commencement of discharging at Charterers’ time, risk and expense. Crew to stay on board during fumigation provided local/health regulation permit, alternatively, if crew refuse to stay on board, Charterers to pay crew accommodation and expenses ashore and time lost due to this to be for Charterers’ account. 116. Drydock Clause: No dry docking during the currency of this Charter / No lay-up option during the currency of this Charter. 117. Deleted. 118. Deleted. 119. Deleted.


120. Deleted. 121. Deleted. 122. ZIKA Virus Protection Clause: Notwithstanding anything else in this Charter Party, if Charterers order the Vessel to call port/s, places or countries that are considered as areas for ZIKA virus infection, Charterers are to undertake and be responsible for the implementation of all relevant measures, as imposed by the World Health Organisation and local authorities’ recommendations/directions, including but not limited to the issuance of all required sanitation certificates. Any direct related costs, risk expenses or liability whatsoever arising out of the Vessel visiting or having visited an affected area, including but not limited to screening, cleaning, fumigating and/or guaranteeing the Vessel and its crew, shall be for Charterers’ account and the Vessel shall remain on hire throughout.

* * * END * * *


Challaland Times

Friday April 15 2016

Commodities News

There has been considerable concern in relation to the production of loose tea in the country. Drought conditions in the interior have reduced the production of tea, and as a result, the price of tea is likely to rise considerably. As Challaland is one of the principal producers of tea, it is likely that there will be a shortage of tea on the international market, which will have an effect on the price. This is likely to impact on the principal markets for tea.


WEST COAST DAILY ECHO

Monday 18 April 2016

There is serious concern in relation to an outbreak of Ebola virus in the City of West Coast and surrounding areas. It is not yet clear how many cases of Ebola virus have been reported, but it is clear from hospital data that there are over 100 cases in the City and in the outlying areas. It is anticipated that the actual number of cases will be much higher.

Several cases have been reported amongst stevedores at the port and also among railway workers and some lorry drivers. The West Coast municipal authorities are mobilising all resources available to them to restrict the spread of the virus. This may include a curfew and restriction on the movement of lorries, goods and, possibly, ships.


WEST COAST DAILY ECHO

Thursday 21 April 2016

The outbreak of Ebola virus in West Coast shows no signs of diminishing. A further 200 cases have been reported in the city and in the surrounding areas in the last 2 days. The local authorities are attempting to quarantines areas where outbreaks have been found, and have introduced a curfew from 7pm to 7am. At the moment virtually all trade in the area has been brought to a standstill, and the City Authorities have declared that there are to be no further arrivals or departures from West Coast port and/or any of the transport facilities.


Date: 11.05.2016 – [Second Email of 11 May 2016] From: [email protected] To: Clark Kent Bulk <[email protected]> Att: Peter Parker

Pls note and pass flng msg to chrtrs :

RE:MV THANOS QUEST / OMEGA – CP DD 18.03.2016

We have received Chrtrs msg about detention by Port State Control. This must be a mistake. We understand that the cook and possibly one of the motormen may have a bit of a cold but no one has fever.

Charterers are asked to keep calm while Owners investigate further.

Owners repeat that this is not an off hire even and the vessel remains on hire in the meantime.

Kind regards,

Operations Dept. HULK HULLS For and on behalf of Panther Shipping Inc.

Date: 11 May 2016 – [First Email of 11 May 2016] From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day

RE : MV THANOS QUEST / OMEGA – CP DD 18.03.2016

Foll rcvd from Chars

Qte

We understand Port State Control has finally attended on board, found a number of crew members with a high fever and have quarantined the vessel for a mimimum 28 days, possibly longer.

This is totally unacceptable – what are our receivers going to say when we tell them they must wait more than a month for their cargo ! Vessel is off hire !!

Unqte

Kind regards,

Peter Parker Clark Kent & Sons [email protected]




Date: 08.05.2016 From: [email protected] To: Clark Kent Bulk <[email protected]> Att: Peter Parker



Chrtrs msg regarding Port State Control’s decision to detain the vessel is noted but this is beyond Owners’ control.

Chrts cannot put the vessel off hire because of decision of the port. The vessel remains on hire.

Kind regards,


Date: 7 May 2016 From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day


Fol rcvd from Chars

Qte

We understand that the vessel has arrived at Wahanda but is being held at anchorage until Port State Control can arrange attendance onboard. Apparently they fear the crew may be carrying the ebola virus and want to check things out before allowing the vessel to berth.

However, it is already the weekend. We are told Port State Control will not attend the vessel until Monday earliest, so berthing will be delayed for at least 2 days.

We hold Owners fully liable for this delay and consider the vessel to be off hire from her arrival at Wahanda.

Unqte

Please be advised accordingly.

Kind regards,





From: Wahanda Port Services – [Second Email of 25 May 2016] To: Omega Chartering <[email protected]; [email protected]> Date: 25.05.2016 Re: MV THANOS QUEST / UW cleaning

Good day,

We have contacted the related company again. For the reason of current, charge and other issues, the anchorage is not suitable for hull cleaning.

The poor visibility is below the standard. It does not work.

We therefore suggest that the ship owner should choose other port to do the cleaning. We are unable to arrange it at this port.

Sorry.

Tks/Brgds

Wahanda Port Services

From: Wahanda Port Services – [First Email of 25 May 2016] To: Omega Chartering <[email protected]; [email protected]> Date: 25.05.2016 Re: MV THANOS QUEST / UW cleaning

Good day,

There were companies who did this work before, but we have not contacted them for a long time.

I’ll check and get back to you soon.

But the current at Wahanda anchorage is quite complex, and no company does such cleaning work now.

The water is muddy thus is not suitable for cleaning.

As a result, we recommend that the ship owner does not clean the bottom here.

Tks/Brgds

Wahanda Port Services


From: Omega Chartering <[email protected]; [email protected]> To; Wahanda Port Services Date: 24.05.2016 Re: MV THANOS QUEST / UW cleaning

Wahanda Port Services / Aris

Hello!

According to the terms of the Charterparty, the vessel waited for a long time at port thus she needs to clean the bottom. Please provide us with relevant information and advice for our and shipowners’ use.

Thank you!

BEST REGARDS

Aris Venger Operations OMEGA CHARTERING LTD


Date: 9 June 2016 – [Second Email of 9 June 2016] From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day



Qte

At Wahanda government does not allow the underwater cleaning jobs due to water dirty. So cannot arrange underwater cleaning there. As per owrs’ email owrs should arrange underwater cleaning. Chars will pay the cost against original invoice.

Unqte

Kind regards,


Date: 09.06.2016 – [First Email of 9 June 2016] From: [email protected] To: Clark Kent Bulk <[email protected]> Att: Peter Parker



Chrtrs msg regarding availability of u/w cleaning at Wahanda anchorage / port noted.

However as there has been no u/w inspection in order to find out the extent of fouling and time of cleaning required, Owners cannot agree in advance a lumpsum amount for the vsl’s bottom, propeller u/w inspection / cleaning.

Also as Chrtrs are aware cost of u/w inspection/cleaning varies according to the place/port that is carried out.

Owners will arrange vessel’s bottom (including rudder, propeller etc) to be inspected/cleaned as per c/p cl 83 at next convenient port however vessel’s next itinerary is not yet known.

We shall revert in due course with relevant divers quotation.

Kind regards,





Date: 8 June 2016 – [Second Email of 8 June 2016] From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day


Fol rcvd from Chars

Qte

FYR, we contacted with disport agent about uw cleaning issues, but we were informed that UW cleaning cannot be performed at disport Wahanda.

Pls kindly see the attached and adv us the method to solve this problem or we propose to pay owr USD 15000 lumpsum to solve the prob

Unqte

Kind regards,


Date: 08.06.2016 – [First Email of 8 June 2016] From: [email protected] To: Clark Kent Bulk <[email protected]> Att: Peter Parker

Please note and pass flng msg to chrtrs :


Kindly note that the vsl arrived at Wahanda port anchorage on 7 May 2016.

We understand that the vessel is not expected to complete discharging operations at this anchorage before at least 12 June 2016.

In this respect Chrtrs are kindly requested to confirm arrangements regarding vsl’s bottom, propeller u/w inspection / cleaning if necessary, as per c/p cl. 83.

Kind regards





From: Clark Kent [email protected] To: Champion Chartering Corp [email protected] Date: 15 June 2016 Re: MV THANOS QUEST / CHAMPION CP DD 15.06.2016

Dear Sir,

ALL CHARTERERS SUBS IN ORDER. THUS WE CLEAN FIXED FOLL WITH CP DD 15.06.2016

*NEGOTIATIONS TO BE STRICTLY PRIVATE & CONFIDENTIAL*

MV THANOS QUEST • MPP dry cargo ship• strengthened for heavy cargoes• equipped for carriage of containers• heavy lifts up to 160 mt• 100% hatch opening

Vessel’s Particulars: Type – MPP, project, strengthened for heavy cargoes. Built – May 2012 – Herren Shipyard Class – Lloyd Register (Ice class 1A) Flag – Antigua and Barbuda Length over all 146.25 mtr Length B/P 136.99 mtr Breadth 20.10 mtr Depth moulded 11.45 mtr Draught max. 8.25 mtr Deadweight SSW 13.563 mt (incl. twd panels abt. 350 mt) GT / NT 9963 / 4937 Ice class 1 A PTC 27 mt

1. Vessel is box shaped with removable tweendeck panels installable 2 heights, usableas bulkheads. Holds / Hatches 100% opening

Hold # 1 Hold # 2 2 Length (m) 26.90 69.75

Beam (m) fore 5.20 aft 15.77 fore 15.77 aft 10.45 Height w/o twd panels (m) 12.09 12.09 Height with twd panels up position hold/twd (m) 5.61/5.58 5.61/5.58 Height with twd panels low position hold/twd (m) 3.01/8.18 3.01/8.18 Tank top (m2) 280 1058 Tweendeck (m2) 348 1100

2. Hold capacities (m3/cbft)Hold # 1 without twd panels 3.990 m3/140850 cbft Hold # 2 without twd panels 13.252 m3/467790 cbft Total cargo holds without twd panels 17.242 m3/608640 cbft Container capacity (TEU) 312 Under deck 400




Total 712

3. Deck Strength.Tank top – 18 mt / m2 Tweendeck – 4 mt / m2 Hatch covers – 1.75 mt / m2

4. Speed / consumption4.1 Speed – 14.00 knots with wind max. Beaufort 3 and sea max. Douglas 2 4.2 Consumption – IFO 380 cst about 21 mt 4.3 Port consumption MGO: idle about 1.00 mt, cranes working about 2.00 mt.

5. MachineryCranes: 2 x 80 SWL – port side cranes (coupled upto 160 mt).

SWL 80 mt / 14 m, SWL 60 mt / 19 m.

Ventilation Type – mechanical exhaust ventilation: Hold # 1: 2 x 30.000 m3/hr Hold # 2: 4 x 50.000 m3/hr.

All details about

+ + +

OWNERS’ FULL STYLE

------------------

PANTHER SHIPPING INC 80 BROAD STREET, MONROVIA, LIBERIA EMAIL: [email protected]

MANAGERS’ FULL STYLE:

HULK HULLS DOUGLAS ISLE OF MAN EMAIL: [email protected]

VSL’S CONTACT DETAILS:

MASTER: CAPTAIN ROGERS

VSL IS WITH THE HEAD OWNRS, NO CHAIN

FOR,

ACCOUNT: CHAMPION CHARTERING CORP, PANAMA

DEL DLOSP WAHANDA ATDNSHINC

-LAYCAN 22-28 JUNE 2016 00:01/24:00HRS RESPECTIVELY

-FOR 2 YR CHARTER WITH 2 YR EXTENSION IN CHOPT



WORLDWIDE TRADING WITH BULK HARMLESS PRODUCTS ONLY, ALWAYS EXCLUDING ALL KIND OF EXPELLERS AND PELLETS, DRY DISTILLER GRAINS, DRY DISTILLER GRAINS SOLUBLES CGOES AND ANY BY-PRODUCTS, BULK RICE AND ANY CARGO REQUIRING CO2 – ELECTRICAL VENTILATION – A60 INSULATION, APPENDIX B CERTIFICATE, TRADING ALWAYS VIA SPS SBS SAS ALWAYS WITHIN IWL/INL AND ALWAYS SAFELY AFLOAT, SAFELY ACCESSIBLE, ALWAYS VIA ICE FREE PORTS/PLACES IN/OUT OF GEOG ROTATION AND ALWAYS IN STRICT ACCORDANCE AS PER OWNRS’ CARGO/TRADING EXCL AND VSL’S CHARACTERISTICS CARGOES TO BE LOADED/STOWED/TRIMMER/CARRIED/DISCHARGED ALWAYS IN STRICT ACCORDANCE WITH ALL LOCAL LAWS AND NATIONAL REGULATIONS AND ALWAYS IN COMPLIANCE WITH INTERNATIONAL REGULATIONS INCL THE IMSBC CODE, AS MAY BE AMENDED FROM TIME TO TIME, SOLAS, ALL IMO REGULATIONS/RECOMMENDATIONS AND VSL’S CLASS.

-DURATION ABT 2 YR + 2 YR IN CHOPT

UNDER THIS C/P VSL TO LOAD ONLY BULK HARMLESS PRODUCTS, ALL OTHER CGOES ARE HEREBY EXCLUDED.

-REDEL DLOSP 1SP EAST COAST RANGE, PORT IN CHRTRS OPTION, ATDNSHINC

-HIRE USD 10500 DAILY INCLOT CHTRS TO PAY 1ST 45 DAYS HIRE WITHIN 3 BANKING DAYS AFTER VESSEL’S DELIVERY, SUBSEQUENTLY HIRE TO BE PAYED EVERY 15 DAYS IN ADVANCE. LAST HIRES AS PER REALISTIC REDELIVERY NOTICES. CHRTRS WILL NOT PAY ANY BUNKERS ON DELY BUT THEY GUARANTEE THAT THEY WILL REPLENISH THE VESSEL WITH BUNKERS BEFORE HER REDELIVERY TO THE OWNRS IN ORDER BUNKERS ON REDELIVERY TO BE ABT THE SAME AS WITH BUNKERS ON DELIVERY.

BANK DETAILS: ------------------ TO BE ADVISED

-BOD ABT 1,500 MTS HSFO AND ABT 175 MTNS LSMGO BUNKERS ON REDELY TO BE ABT THE SAME AS ACTUALLY ON BOARD ON DELIVERY BUNKER PRICES SAME BOTH ENDS USD 315 PMT HSFO AND USD 500 LSMGO – CHARTS WILL NOT PAY FOR BUNKERS ON DELIVER BUT CHRTRS GUARANTEE THEY WILL REPLENISH BUNKERS PRIOR REDEL. ANY MINOR DIFFERENCES BETWEEN DEL/REDEL QTIES TO BE SETTLED BY CHRTRS OR OWNERS AS THE CASE MAY BE IMMEDIATELY AFTER VSL’S REDEL AT THE AGREED C/P PRICES WHICH APPLY AT BOTH ENDS. OWNERS HAVE THE OPTION TO BUNKER THE VESSEL AT ANY TIME DURING THE CURRENCY OF THIS C/PROVIDED SAME DOES NOT INTERFERE WITH CHRTS’ OPERATIONS/CGO INTAKE.


CHRTRS OPTION TO STEM 8217 2005 IF 2010 NOT AVAILABLE

-CHRTRS HAVE THE OPTION TO REDELIVER THE VESSEL WITH UNCLEANED HOLDS AGAINST A LUMPSUM PAYMENT OF USD 5000 ILOHC EXCL REMOVAL OF DUNNAGE/DEBRIS/ETC AND COLLECTION AND DISPOSAL OF FUMIGANT MATERIALS WHICH TO BE COLLECTED AND DISPOSED BY EXPERIENCED, CERTIFIED SHORE LABOUR AT CHRTRS TIME, RISK AND EXPENSE AND CHRTS CONFIRM SAME WILL BE REMOVED FROM THE SHIP PRIOR REDELY.

-CHRTRS TO PAY A LUMPSUM OF USD 1500 PER 30 DAYS OR PRO RATA FOR ALL VICTUALLING/GRATITIES AND COST OF CABLES.

-ON HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT PRIOR OR AT DLY PORT. OFF HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT AT LAST DISCHARGE PORT/PLACE OF REDELIVERY. CHARTERERS & OWNERS TO JOINTLY APPOINT A LOCAL INDEPENDENT SURVEYOR FOR PERFORMING THESE SURVEYS. TIME AND EXPENSES FOR THESE SURVEYS TO BE SHARED EQUALLY BETWEEN OWNERS AND CHARTERERS.

-3.75PCT ADDCOM + 1.25PCT BROKERAGE TO BRS

-OTHERWISE CHRTS RIDER CLAUSES WITH LOGICAL AMENDMENTS AS PER AGREED MAIN TERMS - OTHERWISE NYPE 2015 FORM TERNS TO APPLY. END

PLS CFM ABV IN LINE WITH YR NOTES TKS YR EFFORTS/SUPPORT IN CONCLUDING THIS FIXTURE

Thanks and best regards,

Clark Kent Fixing Team Clark Kent & Sons [email protected]



Date: 26.06.2016 From: Clark Kent Bulk <[email protected]> To: Omega Chartering <[email protected]; [email protected]> Att: Aris Venger

============================================================== Re: MV THANOS QUEST / OMEGA – CP DD 18.03.2016 / T O P U R G E N T ==============================================================

Foll fm owners

Qte

Pls note that Master reported that the vessel after her prolonged stay at Wahanda anchorage has been heavily fouled. Kindly refer to the attached photos which are self explanatory.

The vessel has already been fixed for her next voyage (to load East Coast range) as Chrtrs are aware the vessel cannot proceed to any port in this range if hull is fouled. No cleaning of fouling can take place in East Coast ports.

In this respect Chrtrs are kindly requested to advise their intention regarding arrangement for vessel’s hull, flat bottom, rudder, propeller inspection and cleaning according to CP cl 83.

Kind regards

Unqte

Best regards


Date: 18.06.2016 From: [email protected] To: Clark Kent Bulk <[email protected]> Att: Peter Parker

============================================================== Re: MV THANOS QUEST / OMEGA – CP DD 18.03.2016 / U R G E N T ==============================================================

Please note and pass flng msg to chrtrs

Regarding Chrtrs below we understand that Chrtrs will redelivery vessel dirty.

In this respect Owners reserve their rights to revert in due course with their claim for costs / time / expenses for vessel’s cleaning from fouling due to prolonged stay at Wahanda anchorage which will include underwater inspection, underwater cleaning of hull, bottom, rudder, propeller, seachests etc and also cost / time / expense of cleaning of the parts of hull which will be above water line due to vsl’s reduced draft after completion of discharge (i.e. water blasted and scrubbed as necessary) together with any deviation time/bunkers to a convenient position/port including any underperformance / underconsumption claim that may arise from the next time charter due to the vessel sailing dirty.

Kind regards





From: Titan Shipbuilders <[email protected]> To: Omega Chartering <[email protected]; [email protected]> Date: 23.06.2016 Re. PORT NORTH TITAN – Underwater cleaning Quotation

Aris / Maintenance Team,

U/W cleaning should be carried out at inner anchorage after POB due to strong tidal current at outer anchorage.

1. U/W cleaning charge : USD 25,000.00 (Pls refer to attached quotation) 2. Pilotage & Pilot boat charge : USD 1,3003. Tuggage : USD 5,000.00 (In case of bad weather condition, pilot may require to arrange tug boatassistance) 4. Miscellaneous fee : US$ 400.005. Agency fee : USD 1,300.00TOTAL : USD 33,000.00

THANK YOU

B.RGDS/MAINTENANCE TEAM, Titan Shipbuilders

From: Titan Shipbuilders <[email protected]> To: Omega Chartering <[email protected]; [email protected]> Date: 23.06.2016 Re. PORT NORTH TITAN – Underwater cleaning Quotation

Aris / Maintenance Team,

Well noted yours and will revert quotation by tomorrow morning.

THANK YOU

B.RGDS/MAINTENANCE TEAM, Titan Shipbuilders


From: Omega Chartering <[email protected]; [email protected]> To: Titan Shipbuilders <[email protected]) Date: 22.06.2018 Re. PORT NORTH TITAN - Underwater cleaning Quotation

Dear Maintenance Team,

We have one ship may be call port for underwater cleaning. Pls adv us the quotation for underwater cleaning cost and also yr agent pda cost.

qte BLT 2012 – Antigua and Barbuda Flag 13.563 MT DWT LOA / BREADTH: 146.25/20.10 MTR PCT 27 MT 2/2 HO/HA Total cargo hold capacity 17.242m³ Unqte

B.RGDS (PLS REPLY ALL MESSAGES TO [email protected] ALSO)

Aris Venger Operations OMEGA CHARTERING LTD


TITAN SHIPBUILDERS, NORTH TITAN PORT

QUOTATION

“THANOS QUEST” L.O.A. 146.25M, BREADTH 20.10M

SUBJECT : UNDERWATER HULL CLEANING

PROPELLER CLEANING & SUPER POLISHING

__________________________________________________________________________

THANK YOU FOR YOUR ENQUIRY.

WE HEREBY OFFER OUR BEST QUOTATION FOR WORK AS FOLLOWS :

PARTICULARS AMOUNT

1. UNDERWATER VERTICAL SIDE CLEANING(L.O.A.:146.25M) USD 9,000.-

- INCLUDING PORT&ST/B SIDE, BILGE KEEL, SEA CHEST GRID AND RUDDER

2. UNDERWATER FLAT BOTTOM CLEANING (BREADTH 20.10m) USD 12,000.-

- REMOVAL OF BARNACLES ONLY

3. PROPELLER CLEANING & SUPER POLISHING USD 2,500.-

4. UNDERWATER PHOTOGRAPHS (BEFORE,AFTER=REPORT) USD 300.-

5. DIVING WORK BOAT USD 1,200.-

6. NIGHT TIME WORK CHARGE 30% USD FREE

7. SATURDAY/SUNDAY/HOLIDAY WORK CHARGE 30% USD FREE____

► TOTAL USD 25,000.-


Date: 27.06.2016 – [Second Email of 27 June 2016] From: Clark Kent Bulk <[email protected]> To: Omega Chartering <[email protected]; [email protected]> Att: Aris Venger

RE : MV THANOS QUEST – ALLEGED CARGO DAMAGE

Foll fm Owners

Qte

Receipt of your notification in relation to damage to cargo hereby acknowledged. We have already notified our P&I Club and will arrange a survey which can be done jointly if the Club agree.

Kind regards

Unqte

Peter Parker Clark Kent & Sons Ltd [email protected]

Date: 27 June 2016 – [First Email of 27 June 2016] From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day

RE : MV THANOS QUEST – CARGO DAMAGE – TOP URGENT

Fol rcvd from Chars

Qte

When the vessel opened the hatch for discharge of the cargo, it was clear that there had been severe damage caused by water ingress. It appears that the crew have pumped sea water into the cargo hold instead of pumping it out. We are not yet certain of the extent of the damage, but it clearly will be substantial. We anticipate a substantial claim from the Receivers. We hold the Owners fully liable for all claims and costs arising from the negligence of the crew. We will arrange for a surveyor to attend at the discharge port to protect the interests of the Charterers, please let us know if you want to arrange for a joint survey.

Unqte

Kind regards





Date: 27 June 2016 – [Third Email of 27 June 2016] From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day,



Qte

We refer to our previous communication.

As we have explained Owners, it is not possible to arrange hull cleaning before redelivery of the Vessel.

If Owners are sailing north we can arrange cleaning at North Titan port, about half a day sailing from Wahanda. Otherwise, on a wholly without prejudice basis and pursuant to clause 83 of the CP, we propose paying a lump sum of [USD 20,000] in full and final settlement of all and any costs claims, expenses, damages, liabilities, howsoever and whatsoever arising as a result of or in connection with the need for cleaning pursuant to clause 83.

Please let us know whether this is acceptable to Owners.

Nothing herein constitutes any waiver/admission on our part. All our rights fully reserved.

“83. BIMCO Hull Fouling Clause for Time-Charter Parties to Apply with Sub-Clause (a) to Read as follows: (a) If, in accordance with Charterers’ orders, the Vessel remains at or shifts/sails within a place, anchorage and/or berth and/or port(s) for an aggregated period exceeding: (i) A period of 25 days in a tropical zone or seasonal tropical zone; or (ii) A period of 30 days outside such zones any warranties concerning speed and consumption shall be suspended pending inspection of the Vessel’s underwater parts including, but not limited to, the hull, sea chests, rudder and propeller. (b) In accordance with sub-Clause (a), either party may call for inspection which shall be arranged jointly by Owners and Charterers and undertaken at Charterers’ risk, cost, expense and time. (c) If, as a result of the inspection either party calls for cleaning of any of the underwater parts, such cleaning shall be undertaken by the Charterers at their risk, cost, expense and time in consultation with the Owners. (i) Cleaning shall always be under the supervision of the Master and, in respect of the underwater hull coating, in accordance with the paint manufacturers’ recommended guidelines on cleaning, if any. Such cleaning shall be carried out without damage to the Vessel’s underwater parts or coating. (ii) If, at the port or place of inspection, cleaning as required under this sub-Clause. (c) If not permitted or possible, or if Charterers choose to postpone cleaning, speed and consumption warranties shall remain suspended until such cleaning has been completed. (iii) If, despite the availability of suitable facilities and equipment, Owners nevertheless refuse to permit cleaning, the speed and consumption warranties shall be reinstated from the time of such refusal. (d) Cleaning in accordance with this Clause shall always be carried out prior to redelivery. If, nevertheless, Charterers are prevented from carrying out such cleaning, the parties shall, prior to but latest on redelivery, agree a lump sum payment in full and final settlement of Owners’ costs and expenses arising as a result of or in connection with the need for cleaning pursuant to this Clause. (e) Deleted.”

Unqte

Kind regards,




From: Operations, Champion Chartering Corp To: [email protected] Date: 28.06.2016 Sub: MV THANOS QUEST – CP DD 15.06.2016 / CANCELLED

Dear Capt. Banner,

Good day!

The subj. vessel delays and could not deliver to the charterer before cancelling date i.e. 24:00lt 28th of June 2016.

Charterers hereby declare the option of cancelling as per charter party Cl. 3.

The vessel is free. Thanks !

Mr. Anthony Ugo Assistant Manager Champion Chartering Corp. -------------------------------------------------

From : Operations, Champion Chartering Corp – [Fifth Email of 27 June 2016] To : [email protected] Date : 27.06.2016 Sub : MV THANOS QUEST – CP DD 15.06.2016 / DELAY

Bob / Tony

FIRST OF ALL, HAVE APPRECIATED TO OWNERS BIG COOPERATION SO FAR AND INFORM US VSLS EXACT SITUATION.

REGARDING OWNRS LAST MSG FOR CANCELLING EXTENSION OF MV VESSEL, WE ARE KINDLY ASKING OWNERS UNDERSTANDING FOR CHARTERERS POSITION WHICH WE CUD NOT KEEP HER AS PER OWNERS REQUEST (CANCELLING DATE 30 JUN 2016)

WE REACHED FOLL CONCLUSION THAT WE’D BETWEER RELEASE THIS SHIP AS SOON AS POSSIBLE WHICH OWNRS WUD HAVE TIME TO SECURE NEXT EMPLOYMENT EARLIER.

SORRY FOR NON-COOPERATION THIS CASE BUT DEFINITELY, TRY TO COOOPERATE IN THE NEAR FUTURE. TKS.

Thks & B.Regards / Champion Chartering Corp. -------------------------------------------------




From : [email protected] – [Fourth Email of 27 June 2016] To : Operations, Champion Chartering Corp. Date : 27.06.2016 Re : MV THANOS QUEST – CP DD 15.06.2016 / DELAY

Tony / Bob

Chrtrs kindly note that due to the continuing bad weather the vessel is facing significant delays on the discharging operations. Basis the current information from agents seems that the vessel will be ready to sail on the 29th of June or at worst on the 30th June 2016.

Ownrs are deeply sorry for this situation which obviously is beyond their control, but they do not have other choice but to hereby request charterers’ kind confirmation for the extension of the cancelling date until 30 June 23:59hrs lt.

Ownrs would highly appreciated to have charterers’ kind feedback w/in today pls.

Rgds Capt. Bob Banner [email protected]





Good day

RE : MV THANOS QUEST / OMEGA – CP DD 18.03.2016 / FOULING DUE TO PROLONG STAY AT WAHANDA

Foll fm owners

Qte

Ref Chtrs last Chtrs have not been prevented from cleaning the vessel during the currency of the c/p. The c/p is still in existence and they can still do so. Owners’ solicitors and Club have advised Chtrs remain obliged to deal with this prior to redelivery.

Owners did not ask for the vsl to be delayed for so long awaiting discharge at a rate below the market, nor to have the vessel become fouled nor to lose their next employment because of the delays.

Chtrs offer is not generous nor does Owners’ proposal of cleaning at South Island reposition the vessel to Owners’ advantage.

By this message Owners give Chtrs one final opportunity to respect their contractual obligations and confirm arrangement of cleaning the above and under water areas prior to redelivery as requested.

Please confirm within today.

Kind regards,

Unqte

Best regards



Good day


Fol rcvd from Chars

Qte

Pls find below fm PNI.

QUOTE Charterers thank Owners for their last email.



Charterers have already tendered their 1 day re-delivery notice and will re-deliver the vessel DLSOP Wahanda port, hopefully later this afternoon. Any further voyage including South Island would not be contractual. As Charterers have previously repeatedly mentioned, pursuant to clause 83D of the Charterparty, in circumstances where the Charterers are prevented from carrying out hull cleaning on re-delivery, Charterers are entitled to make a lump sum payment in lieu of cleaning.

As such, Charterers repeat their offer of a lump sum of USD30,000 for the hull cleaning in full and final settlement of this matter. In the circumstances, this is a generous offer and Owners would not be entitled to re-position their vessel for their own commercial advantage at the expense of Charterers.

Please can you confirm acceptance of this offer ASAP so that we can draw a line under this. UNQUOTE

Unqte

Kind regards



RE : MV THANOS QUEST – CP DD 18.03.2016 / 1 Day Redelivery Notice

Foll fm Owners

Qte

Clause 83 of C/P anticipates there will be an inspection of the fouling of the vessel before C/P expires. You have advised Wahanda it has not been possible to carry out joint inspection of the fouling because of the water conditions at redelivery port. However from the evidence available as to the extent of fouling both above and below water line it is clear the vessel must be cleaned. The C/P Clause requires that inspection and cleaning shall take place at Charterers’ risk and expense and only if Charterers are prevented from carrying out cleaning shall there be an attempt to agree a lump sum for this. Charterers have not been prevented from carrying out cleaning – they simply wish to redeliver without inspection or cleaning to suite their own convenience.

Owners again call upon Charterers to arrange inspection and cleaning South Island following completion of discharge at Wahanda. The vessel shall remain on hire in the meantime notwithstanding Charterers attempts to redelivery prematurely.

If Charterers continue to maintain that they are not obliged to arrange inspection and cleaning prior to redelivery Owners will make arrangements to clean the vessel at South Island themselves and the time, bunkers, port expenses and all costs of cleaning will be fully for Charterers’ account

Kind regards

Unqte






Good day


Fol rcvd from Chars

Qte

As you know there is now taking place a joint survey on board and there will be a subsequent joint inspection once the cargo has been fully discharged. We have now heard from our Receivers that the cargo is indeed likely to be severely damaged. If appears, from the surveyors’ reports, that the crew made an error while ballasting the vessel ready for her departure. We have had lengthy discussions with the Receivers in relation to the issues involved, including the contract of carriage and the likely claims. It is not yet clear if the cargo will be reconditioned or will have to be sold in damaged condition.

In the meantime, we hereby serve redelivery notice to owner that vessel will be redelivered to owner on DLOSP Wahanda around 30 June 2016 subject all going well weather permitting and any unforeseen circumstance always excepted.

Pls treat this message as charterer 1 day redelivery notice and inform owner accordingly.

Unqte

Kind regards




Date: 7 July 2016 From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day


Fol rcvd from Chars

Qte

Reference our last of 29 June, we now attach the preliminary damage report of our surveyors. We will revert once the details of receivers’ claim against us become clear.

Meantime please treat this message as formal notice of claim against you.

Unqte

Kind regards




Mekon Surveyors Inc.

Preliminary Survey Report

30 June 2016

Dear Sirs,

MV THANOS QUEST at Wahanda - Damage to Cargo - English Breakfast Tea (in bags)

We attended on board the “THANOS QUEST” at Wahanda port, Bao Kingdom on 28, 29 and 30 June,

on the instructions of the Charterers of the vessel. Our surveyor, Dan Dare, has reported that there is

severe water damage to the cargo of tea stowed in lower hold no. 2. This is only a preliminary report

but it appears that the crew were taking steps to ballast the vessel, ready for her departure once the

cargo had been discharged. The cargo consists of 8,600 mt of loose leaf English Breakfast Tea in 1kg

jute bags packed in 1,720 5mt big bags. The cargo was stowed in bulk.

The ballasting system is standard, and has a system of non-return valves. However it seems, during

the course of the ballasting operation, a crew member opened the wrong valves. As a result of this sea

water was pumped into the hold, rather than into the ballast tanks, in error. Mr Dare examined the

ballasting system and found it to be in order, the damage was caused by improper use of the ballasting

system by the crew.

It is too early to say the likely quantum of the damage, but Mr Dare estimates that the majority of the

cargo is severely water damaged. Indeed some bags were seen floating in the hold ! The Receivers

will take delivery of the cargo, and they will see if any of the tea can be salvaged or re-conditioned. It

is not clear if salt tea is popular in this area !

Mr Dare has made some enquiries, and he reports that the market price of this grade of tea, sold in Bao

Kingdom, is between US$60 and US$65 per kilo. On that basis, in the event that the majority of the

cargo is a total loss, the damage will be very substantial. We will not know the quantum of the loss for

some time, as the Receivers will need to assess their options. However, Mr Dare was told, by the

Representative for the Receivers, that they would be making a claim against Charterers under the

Contract of Carriage. Mr Dare was shown documents by the Receivers that indicated that Charterers

were the contractual carrier.

We will report again, in due course, when we hear further from the Receivers in relation to the potential

loss that they have suffered.

Yours faithfully,

Mekon Surveyors Inc.


1. Agents

2. Place and date

West Coast, Challaland 18 March 20163. Carrier 4. Merchant (see clause 1)Omega Chatering Ltd Hawkeye Import & Export PtyLiechtenstein Wahanda

Bao Kingdom

5. Vessel's Name 6. Time for shipment (about)MV THANOS QUEST Laycan 25-30 March 2016

7. Loading port (or so near thereunto as the vessel may safely get and alwaysbe afloat)

8. Discharging port

West Coast, Challaland Wahanda, Bao Kingdom

9. Description of goods

10. Freight rate (also indicate whether prepayable or payable at destination) 11. Demurrage rate (if agreed).

(in full or in extract), are found on the reverse hereof.

Signature (Carrier) Signature (Merchant)

DRAFT

by authority of the Baltic and International Maritime Conference, Copenhagen.

See attached

It is hereby agreed that this Contract shall be performed subject to the terms contained on page 1 and 2 hereof which shall prevail over any previous

Printed and sold by Fr.G.Knudtson Ltd, 56, Toldbodgade, Copenhagen

13. Special terms, if agreed

arrangements and which shall in turn be superceded (except as to deadfreight or demurrage), by the terms of the Bill of Lading, the terms of which,

12. Merchant's representatives at loading port, (state full name and address, telegraphic address, telephone and telex.

"CONLINEBOOKING"

LINER BOOKING NOTE

English breakfast tea in bags 1720 x 5mt big bags


FULL TERMS OF THE CARRIER'S BILL OF LADING FORM *1. Definition. In the absence of such declaration the Carrier may elect to which safely and without delay, the Master may dischargeWherever the term "Merchant" is used in this Bill of Lading, it discharge at the first or any other optional port and the the cargo at port of loading or any other safe andshall be deemed to include the Shipper, the Receiver, the contract of carriage shall then be considered as having been convenient port.Consignee, the Holder of the Bill of Lading and the Owner of fulfilled. Any option can be exercised for the total quantity (d) The discharge under the provisions of this clause of anythe cargo, under this Bill of Lading only. cargo for which a Bill of Lading has been issued shall be

deemed due fulfillment of the contract.2. General Paramount Clause. 11. Freight and Charges. If in connection with the exercise of any liberty under thisThe Hague Rules contained in the International Convention (a) Prepayable freight, whether actually paid or not, shall be clause any extra expenses are incurred, they shall be paidfor the Unification of certain rules relating to Bills of Lading, considered as fully earned upon loading and non-returnable by the Merchant in addition to the freight, together with returndated Brussels the 25th August 1924 as enacted in the in any event.The Carrier's claim for any charges under this freight if any and a reasonable compensation for any extracountry of shipment shall apply to this contract. When no contract shall beconsidered definitely payable in like manner services rendered to the goods.such enactment is in force in the country of shipment, the as soon as the charges have been incurred. Interest at 5 per (e) If any situation referred to in this clause may becorresponding legislation of the country of destination shall cent, shall run from the date when freight and charges are anticipated, or if for any such reason the vessel cannotapply, but in respect of shipments to which no such due. safely and without delay reach or enter the loading port orenactments are compulsorily applicable, the terms of the said (b) The Merchant shall be liable for expenses of fumigation must undergo repairs, the Carrier may cancel the contractConvention shall apply. and of gathering and sorting loose cargo and of weighing before the Bill of Lading is issued.Trades where Hague-Visby Rules apply. onboard and expenses incurred in repairing damage to and (f) The Merchant shall be informed if possible.In trades where the international Brussels Convention 1924 replacing of packing due to excepted causes and for allas amended by the Protocol signed at Brussels on February expenses caused by extra handling of the cargo for any of 17. Identity of Carrier.23rd 1968 - The Hague-Visby Rules - apply compulsorily, the the aforementioned reasons. The Contract evidence by this Bill of Lading is between theprovisions of the respective legislation shall be considered (c) Any dues, duties, taxes and charges which under any Merchant and the Owner of the vessel named hereinincorporated in this Bill of Lading. The Carrier takes all denomination may be levied on any basis such as amount of (or substitute) and it is therefore agreed that said Shipownerreservations possible under such applicable Legislation, freight, weight of cargo or tonnage of the vessel shall be only shall be liable for any damage or loss due to any breachrelating to the period before loading and after discharging and paid by the Merchant. or non-performance of any obligation arising out of thewhile the goods are in the charge of another Carrier, and to (d) The Merchant shall be liable for all fines and or losses contract of carriage, whether or not relating to the vessel'sdeck cargo and live animals. which the Carrier, vessel or cargo may incur through non- seaworthiness. If, despite the foregoing, it is adjudged that

observance of Custom House and/or import or export any other is the Carrier and/or bailee of the goods shipped3. Jurisdiction. regulations. hereunder, all limitation of, and exoneration's from, liabilityAny dispute arising under this Bill of Lading shall be decided (e) The Carrier is entitled in case of incorrect declaration of provided for by law or by this Bill of Lading shall be availablein the country where the carrier has his principal place of contents, weights, measurements or value of the goods to to such other.business, and the law of such country shall apply except as claim double the amount of freight which would have been It is further understood and agreed that as the Lineprovided elsewhere herein. due if such declaration had been correctly given. Company or Agents who has executed this Bill of Lading

For the purpose of ascertaining the actual facts, the Carrier for and on behalf of the Master is not a principal in the4. Period of Responsibility. reserves the right to obtain from the Merchant the original transaction, said Line, Company or Agents shall not be underThe Carrier or his Agent shall not be liable for loss of or invoice and to have the contents inspected and the weight, any liability arising out of the contract of carriage, nor asdamage to the goods during the period before loading and measurement or value verified. Carrier nor bailee of the goods.after discharge from the vessel, howsoever such loss ordamage arises. 12. Lien. 18. Exemptions and Immunities of all servants and

The Carrier shall have a lien for any amount due under this agents of the Carrier.5. The Scope of Voyage. contract and costs of recovering same and shall be entitled It is hereby expressly agreed that no servant or agent of theAs the vessel is engaged in liner service the intended voyage to sell the goods privately or by auction to cover any claims. Carrier (including every independent contractor from time toshall not be limited to the direct route but shall be deemed to time employed by the Carrier) shall in any circumstancesinclude any proceeding or returning to or stopping or slowing 13. Delay. whatsoever be under any liability whatsoever to thedown at or off anyany ports or places for any reasonable The Carrier shall not be responsible for any loss sustained by Merchant for any loss damage or delay arising or resultingpurpose connected with the service including maintenance the Merchant through delay of the goods unless caused by directly or indirectly from any act, neglect or default on hisof vessel and crew. the Carrier's personal gross negligence. part while acting in the course of or in connection with his

employment and, but without prejudice to the generality of the6. Substitution of Vessel, Transhipment and 14. General Average and Salvage. foregoing provisions in this clause, every exemption,

Forwarding. General Average to be adjusted at any port or place at limitation, condition and liberty herein contained and everyWhether expressly arranged beforehand or otherwise, the Carrier's option and to be settled according to the York- right exemption from liability, defence and immunity of Carrier shall be at liberty to carry the goods to their port of Antwerp Rules 1974. In the event of accident, danger, whatsoever nature applicable to the Carrier or to which the destination by the said or by the said or other vessel or damage or disaster before or after commencement of the Carrier is entitled hereunder shall also be available and shallvessels either belonging to the Carrier or others, or by other voyage resulting from any cause whatsoever due to extend to protect such servant or agent of the Carrier actingmeans of transport, proceeding either directly or indirectly to negligence or not, for which or for the consequence of as aforesaid and for the purpose of all the foregoingsuch port and to carry the goods or part of them beyond their which the Carrier is not responsible by statute, contract provisions of this clause the Carrier is or shall be deemed toport of destination, and to tranship, land and store the goods or otherwise, the Merchant shall contribute with the Carrier be acting as agent or trustee on behalf of and for the benefiteither on shore or afloat and reship and forward the same at in General Average to the payment of any sacrifice, losses of all persons who are or might be his servants or agentsCarrier's expense but at Merchant's risk. When the ultimate or expenses of a General Average nature that may be made from time to time (including independent contractors asdestination at which the Carrier may have engaged to deliver or incurred, and shall pay salvage and special charges aforesaid) and all such persons shall to this extent be or bethe goods is other than the the vessel's port of discharge, the incurred in respect of the goods. If a salving vessel is deemed to be parties to the contract evidenced by this Bill ofCarrier acts as Forwarding Agent only.The responsibility of owned or operated by the Carrier, salvage shall be paid for Lading.the Carrier shall be limited to the part of the transport per- as fully as if the salving vessel or vessls belonged to The Carrier shall be entitled to be paid by the Merchant onformed by him on vessels under his management and no strangers. demand any sum recovered or recoverable by the Merchantclaim will be acknowledged by the Carrier for damage or loss or any other from such servant or agent of the Carrier for arising during any other part of the transport even though 15. Both-to-Blame Collision Clause. any such loss, damage or delay or otherwise.the freight for the whole transport has been collected by him. (This clause to remain in effect even if unenforcible in the

Courts of the United States of America). 19. Optional Stowage. Unitization.7. Lighterage. If the vessel comes into collision with another vessel as a (a) Goods may be stowed by the Carrier as received, or, atAny lightering in or off ports of loading or ports of discharge result of the negligence of the other vessel and any act, Carrier's option, by means of containers, or similar articlesto be for the account of the Merchant. negligence or default of the Master, Mariner, Pilot or the of transport used to consolidate goods.

servants of the Carrier in the navigation or in the (b) Containers, trailers and transportable tanks, whether8. Loading, Discharging and Delivery management of the vessel, the Merchant will indemnify the stowed by the Carrier or received by him in a stowedof the cargo shall be arranged by the Carrier's Agent unless Carrier against all loss or liability to the other or non-carrying condition from the Merchant, may be carried on or under otherwise agreed. Landing, storing and delivery shall be for vessel or her Owner in so far as such loss or liability deck without notice to the Merchant.the Merchant's account. Loading and discharging may represents loss of or damage to or any claim whatsoever (c) The Carrier's liability for cargo stowed as aforesaid shall commence without previous notice. The Merchant or his of the owner of the said goods paid or payable by the other be governed by the Hague Rules as defined above notwith-Assign shall tender the goods when the vessel is ready to or non-carrying vessel or her Owner to the owner of said standing the fact that the goods are being carried on deckload and as fast as the vessel can receive and - but only if cargo and set-off, or recouped or recovered by the other and the goods shall contribute to general average and shallrequired by the Carrier - also outside ordinary working hours or non-carrying vessel or her Owner as part of his claim receive compensation in general average.not-withstanding any custom of the port. Otherwise the against the carrying vessel or Carrier. The foregoing carrier shall be relieved of any obligation to load such cargo provisions shall also apply where the Owner, operator or ADDITIONAL CLAUSESand the vessel may leave the port without further notice and those in charge of any vessel or vessels or objects other (To be added if required in the contemplated trade)deadfreight is to be paid. than, or in addition to, the colliding vessels or objects are at A. Demurrage.The Merchant or his Assign shall take delivery of the goods fault in respect of a collision or contact. The Carrier shall be paid demurrage at the daily rate per tonand continue to receive the goods as fast as the vessel can of the vessel's gross register tonnage as indicated on Page 2deliver and - but only if required by the Carrier - also outside 16. Government directions, War, Epidemics, Ice, if the vessel is not loaded or discharged with the dispatchordinary working hours, notwithstanding any custom of the Strikes, etc. set out in Clause 8, any delay in waiting for berth at or offport. Otherwise the Carrier shall be at liberty to discharge the (a) The Master and the Carrier shall have liberty to comply port to count.goods and any discharge to be deemed a true fulfilment of with any order or directions or recommendations in Provided that if the delay is due to causes beyond the controlthe contract, or alternatively to act under Clause 16. connection with the transport under this contract given by of the Merchant, 24 hours shall be deducted from the timeThe Merchant shall bear all overtime charges in connection any Government or Authority, or anybody acting or of demurrage.with tendering and taking delivery of the goods as above. purporting to act on behalf of such Government or Authority, Each Merchant shall be liable towards the Carrier for a If the goods are not applied for within a reasonable time, the or having under the terms of the insurance on the vessel proportionate part of the total demurrage due, based uponCarrier may sell the same privately or by auction. the right to give such orders or directions or the total freight on the goods to be loaded or discharged atThe Merchant shall accept his reasonable proportion of recommendations. the port in question.unidentified loose cargo. (b) Should it appear that the performance of the transport No Merchant shall be liable in demurrage for any delay

would expose the vessel or any goods on-board to risk of arisen only in connection with goods belonging to other9. Live Animals and Deck Cargo seizure or damage or delay, resulting from war, warlike Merchants.shall be carried subject to the Hague Rules as referred to in operations, blockade, riots, civil commotions or piracy, or The demurrage in respect of each parcel shall not exceed itsClause 2 hereof with the exception that notwithstanding any person onboard to the risk of loss of life or freedom, freight.anything contained in Clause 19 the Carrier shall not be liable or that any such risk has increased, the Master may (This Clause shall only apply if the Demurrage Box on Pagefor any loss or damage resulting from any act, neglect or discharge the cargo at port of loading or any other safe 2 is filled in).default of his servants in the management of such animals and convenient port.and deck cargo. (c) Should it appear that epidemics, quarantine, ice, labour B. U.S. Trade. Period of Responsibility.

troubles, labour obstructions, strikes, lock-outs, any of which In case the Contract evidence by this Bill of Lading is subject10. Options onboard or on shore - difficulties in loading or discharging to the U.S. Carriage of Goods by Sea Act, then theThe port of discharge for optional cargo must be declared to would prevent the vessel from leaving the port of loading provisions stated in said Act shall govern before loadingthe vessel's Agents at the first of the optional ports not later or reaching or entering the port of discharge or there and after discharge and throughout the entire time the goodsthan 48 hours before the Vessel's arrival there. discharging in the usual manner and leaving again, all of are in the Carrier's custody.

* LINER BILL OF LADING(Liner terms approved by The Baltic and International Maritime Conference)Code Name: CONLINEBILLAmended January 1st 1950. August 1st. 1952. January 1st. 1973. July 1st. 1974. August 1st. 1976. January 1st. 1978.


LINER BILL OF LADING B/L No.Shipper

Reference No.

Consignee

Notify address

Pre-carriage by* Place of receipt by pre-carrier*

Vessel Port of loading

Port of discharge Place of delivery by on-carrier*

Marks and Nos. Number and kind of packages: description of goods Gross weight

Freight details, charges etc. SHIPPED on board in apparent good order and condition, weight, measure,marks, numbers, quality, contents and value unknown, for carriage to the Portof Discharge or so near thereunto as the Vessel may safely get and lie alwaysafloat, to be delivered in the like good order and condition at the aforesaid Portunto Consignees or their Assigns, they paying freight as indicated to the the leftplus other charges incurred in accordance with the provisions contained in thisBill of Lading. In accepting this Bill of Lading the Merchant expressly acceptsand agrees to all its stipulations on both pages, whether written, printed,stamped or otherwise incorporated, as fully as if they were all signed by theMerchant.One original Bill of Lading must be surrendered duly endorsed in exchange forthe goods or delivery order.

I N W I T N E S S whereof the Master of the said Vessel has signed thenumber of original Bills of Lading stated below all of this tenor and date, one ofwhich being accomplished, the others to stand void.

Daily demurrage rate (additional Clause A)

Applicable only when document used as a Freight payable at Place and date of issuethrough Bill of Lading

Number of original Bs/L Signature

Measurement


South Island Port Agency Co. Ltd

INVOICE TO: HULK HULLS ATTN: PURCHASING MANAGER DATE: 07/11/2016

DESCRIPTION UNIT U/PRICE Total (USD)

TEAM OF DIVERS WITH WORKING BOAT TO ATTEND TO SUBJECT VESSEL

LOCATION WHERE BUOY NO. 53-54 IN SOUTH ISLAND HARBOUR, TO CARRY

OUT THE UNDERWATER HULL CLEANING WORK AS BELOW AS PER REQUEST:

WORKING PERIOD: 2 JUL. 2016 0800-1700HRS, 3 JUL. 2016 0800-2000HRS

A. UNDERWATER HULL CLEANING INCLUSIVE BOTH VERTICAL SIDE, FLAT

BOTTOM AND TOTAL 4 SEACHEST GRATINGS AND ONE FIRE PUMP GRATING.

1 10,000.00

B. PROPELLER POLISHING 1 3,000.00

C. BOOTOPING ABOVE WATER LEVEL 4m CLEANING BY MAN POWER HAND

TOOLS

1 13,000.00

D. PROVIDE STILL PHOTOS OF BEFORE AND AFTER CLEANING

** OVERTIME COMPLETED WORK TO AVOID HOLIDAY CHARGES 25% 4,000.00

TOTAL USD 30,000.00


SOUTH ISLAND PORT AGENCY CO. LTD.

Statement of Vessel Disbursements

MESSRS. HULK HULLS DATE: JULY 11TH, 2016 M.V. THANOS QUEST PORT: SOUTH ISLAND ARRD: 02/07/16 SLD: 04/07/16

ITEM DESCRIPTION US$ A. PORT CHARGE. 1 PILOTAGE 1,246.81 2 TONNAGE DUES 1,683.75 3 BUOYAGE 626.22 4 GARBAGE REMOVAL 63.32 5 TUGGAGE 4,283.71 6 TUG’S TUGGAGE LINE EXPENSES 514.13 7 MOORING/UNMOORING 431.68 8 LAUNCH HIRE 643.00 9 TRANSPORTATION FEE FOR PILOT USE 198.61 10 QUARANTINE/CUSTOM EDI 49.65 11 INTERNATIONAL EXPRESS 32.11 12 AGENCY FEE 1,226.97

TOTAL: 11,000.00 GRAND TOTAL: 11,000.00


PANTHER SHIPPING INCMV THANOS QUEST CP DD 18.03.2016

FINAL HIRE STATEMENT1/08/2016

CHARTERERS IN USD

OWNERS IN USD

1. HIRE

DELIVERY GMTREDELIVERY GMTUSD/DAY 7,500.00 91.1215 DAYS 683,411.25

2. COMMISSION

ADDRESS 3.75% 25,627.92

3. BUNKERS

BUNKERS ON DELIVERYHSFO 1,554.340 MT X USD 315.00 489,617.10LSGO 172.23 MT X USD 500.00 86,115.00

BUNKERS ON REDELIVERYHSFO 1,534.440 MT X USD 315.00 483,348.60LSGO 158.68 MT X USD 500.00 79,340.00

4. TELCOM/VICTUALLINGUSD 1500 PER 30 DAYS/PR 4,556.08

5. HOLD CLEANING

REDELIVERY 5,000.00

7. CHARTERERS' EXPENSES

On-hire survey 333.33

8. UNDERWATER AND BOOTOPING HULL CLEANING AT OWNERS' CLEANING PORTDUE TO FOULING AT WAHANDA (CLAIM)

1) FROM DEPART PORT 30/06/2016 14:25 GMTTO CLEANING PORT 4/07/2016 20:45 GMTUSD/DAY USD 7,500.00 4.2639 DAYS 31,979.25

ADDRESS COMMISSION 3.75% 1,199.22

CVE 213.19

BUNKERS CONSUMED DURING VOYAGE TO SOUTH ISLAND FOR HULL CLEANINGHSFO 76.680 MT X USD 315.00 24,154.20LSGO 0.840 MT X USD 500.00 420.00

2) Cost of Underwater and Bootoping Hull cleaning including propeller polishing 30,000.00

3) PORT D/A (tugs, berthdues, pilots) 11,000.00

Net Balance Due to Owners 96,567.42


From: Clark Kent [email protected] To: Fairwind International, BVI Date: 4 July 2016 Re: MV THANOS QUEST / FAIRWIND RECAP OF FIXTURE CP DD 04.07.2016

- ALL NEGOS AND FIXTURE IF ANY TO BE STRICTLY PRIVATE & CONFIDENTIAL AND NOT TO BE REPORTED ON THE MARKET BY ALL CONCERNED PARTIES -

Performing Vessel: MV THANOS QUEST • MPP dry cargo ship• strengthened for heavy cargoes• equipped for carriage of containers• heavy lifts up to 160 mt• 100% hatch opening

Vessel’s Particulars: Type – MPP, project, strengthened for heavy cargoes. Built – May 2012 – Herren Shipyard Class – Lloyd Register (Ice class 1A) Flag – Antigua and Barbuda Length over all 146.25 mtr Length B/P 136.99 mtr Breadth 20.10 mtr Depth moulded 11.45 mtr Draught max. 8.25 mtr Deadweight SSW 13.563 mt (incl. twd panels abt. 350 mt) GT / NT 9963 / 4937 Ice class 1 A PTC 27 mt

1. Vessel is box shaped with removable tweendeck panels installable 2 heights, usableas bulkheads. Holds / Hatches 100% opening

Hold # 1 Hold # 2 2 Length (m) 26.90 69.75

Beam (m) fore 5.20 aft 15.77 fore 15.77 aft 10.45 Height w/o twd panels (m) 12.09 12.09 Height with twd panels up position hold/twd (m) 5.61/5.58 5.61/5.58 Height with twd panels low position hold/twd (m) 3.01/8.18 3.01/8.18 Tank top (m2) 280 1058 Tweendeck (m2) 348 1100

2. Hold capacities (m3/cbft)Hold # 1 without twd panels 3.990 m3/140850 cbft Hold # 2 without twd panels 13.252 m3/467790 cbft Total cargo holds without twd panels 17.242 m3/608640 cbft Container capacity (TEU) 312 Under deck 400 Total 712



3. Deck Strength.Tank top – 18 mt / m2 Tweendeck – 4 mt / m2 Hatch covers – 1.75 mt / m2

4. Speed / consumption4.1 Speed – 14.00 knots with wind max. Beaufort 3 and sea max. Douglas 2 4.2 Consumption – IFO 380 cst about 21 mt 4.3 Port consumption MGO: idle about 1.00 mt, cranes working about 2.00 mt.

5. MachineryCranes: 2 x 80 SWL – port side cranes (coupled upto 160 mt).

SWL 80 mt / 14 m, SWL 60 mt / 19 m.

Ventilation Type – mechanical exhaust ventilation: Hold # 1: 2 x 30.000 m3/hr Hold # 2: 4 x 50.000 m3/hr.

All details about

+ + +

OWNERS’ FULL STYLE

------------------

PANTHER SHIPPING INC 80 BROAD STREET, MONROVIA, LIBERIA EMAIL: [email protected]

MANAGERS’ FULL STYLE:

HULK HULLS DOUGLAS ISLE OF MAN EMAIL: [email protected]

VSL’S CONTACT DETAILS:

MASTER: CAPTAIN ROGERS

VSL IS WITH THE HEAD OWNRS, NO CHAIN

FOR,

ACCOUNT: FAIRWIND INTERNATIONAL, TORTOLA, BVI

DEL DLOSP SOUTH ISLAND ATDNSHINC

-LAYCAN 04-06 JULY 2016 00:01/24:00HRS RESPECTIVELY

ONE TC TRIP, ONE LADEN LEG VIA EAST COAST TO WEST COAST WITH BULK HARMLESS PRODUCTS ONLY, ALWAYS EXCLUDING ALL KIND OF EXPELLERS AND PELLETS, DRY DISTILLER GRAINS, DRY DISTILLER GRAINS



SOLUBLES CGOES AND ANY BY-PRODUCTS, BULK RICE AND ANY CARGO REQUIRING CO2 – ELECTRICAL VENTILATION – A60 INSULATION, APPENDIX B CERTIFICATE, TRADING ALWAYS VIA SPS SBS SAS ALWAYS WITHIN IWL/INL AND ALWAYS SAFELY AFLOAT, SAFELY ACCESSIBLE, ALWAYS VIA ICE FREE PORTS/PLACES IN/OUT OF GEOG ROTATION AND ALWAYS IN STRICT ACCORDANCE AS PER OWNRS’ CARGO/TRADING EXCL AND VSL’S CHARACTERISTICS CARGOES TO BE LOADED/STOWED/TRIMMER/CARRIED/DISCHARGED ALWAYS IN STRICT ACCORDANCE WITH ALL LOCAL LAWS AND NATIONAL REGULATIONS AND ALWAYS IN COMPLIANCE WITH INTERNATIONAL REGULATIONS INCL THE IMSBC CODE, AS MAY BE AMENDED FROM TIME TO TIME, SOLAS, ALL IMO REGULATIONS/RECOMMENDATIONS AND VSL’S CLASS.

-DURATION ABT 50-55 DAYS.

UNDER THIS C/P VSL TO LOAD ONLY BULK HARMLESS PRODUCTS, ALL OTHER CGOES ARE HEREBY EXCLUDED.

-DEL DLOSP 1SP SOUTH ISLAND ,ATDNSHINC

-HIRE USD 11000 PDPR INCLOT CHTRS TO PAY 1ST 45 DAYS HIRE WITHIN 3 BANKING DAYS AFTER VESSEL’S DELIVERY, SUBSEQUENTLY HIRE TO BE PAYED EVERY 15 DAYS IN ADVANCE. LAST HIRES AS PER REALISTIC REDELIVERY NOTICES. CHRTRS WILL NOT PAY ANY BUNKERS ON DELY BUT THEY GUARANTEE THAT THEY WILL REPLENISH THE VESSEL WITH BUNKERS BEFORE HER REDELIVERY TO THE OWNRS IN ORDER BUNKERS ON REDELIVERY TO BE ABT THE SAME AS WITH BUNKERS ON DELIVERY.

BANK DETAILS: ------------------ TO BE ADVISED

-BOD ABT 1,500 MTS HSFO AND ABT 175 MTNS LSMGO BUNKERS ON REDELY TO BE ABT THE SAME AS ACTUALLY ON BOARD ON DELIVERY BUNKER PRICES SAME BOTH ENDS USD 315 PMT HSFO AND USD 500 LSMGO – CHARTS WILL NOT PAY FOR BUNKERS ON DELIVER BUT CHRTRS GUARANTEE THEY WILL REPLENISH BUNKERS PRIOR REDEL. ANY MINOR DIFFERENCES BETWEEN DEL/REDEL QTIES TO BE SETTLED BY CHRTRS OR OWNERS AS THE CASE MAY BE IMMEDIATELY AFTER VSL’S REDEL AT THE AGREED C/P PRICES WHICH APPLY AT BOTH ENDS. OWNERS HAVE THE OPTION TO BUNKER THE VESSEL AT ANY TIME DURING THE CURRENCY OF THIS C/PROVIDED SAME DOES NOT INTERFERE WITH CHRTS’ OPERATIONS/CGO INTAKE.

CHRTRS OPTION TO STEM 8217 2005 IF 2010 NOT AVAILABLE


-CHRTRS HAVE THE OPTION TO REDELIVER THE VESSEL WITH UNCLEANED HOLDS AGAINST A LUMPSUM PAYMENT OF USD 5000 ILOHC EXCL REMOVAL OF DUNNAGE/DEBRIS/ETC AND COLLECTION AND DISPOSAL OF FUMIGANT MATERIALS WHICH TO BE COLLECTED AND DISPOSED BY EXPERIENCED, CERTIFIED SHORE LABOUR AT CHRTRS TIME, RISK AND EXPENSE AND CHRTS CONFIRM SAME WILL BE REMOVED FROM THE SHIP PRIOR REDELY.

-CHRTRS TO PAY A LUMPSUM OF USD 1500 PER 30 DAYS OR PRO RATA FOR ALL VICTUALLING/GRATITIES AND COST OF CABLES.

-ON HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT PRIOR OR AT DLY PORT. OFF HIRE BUNKER AND CONDITION SURVEY TO BE CARRIED OUT AT LAST DISCHARGE PORT/PLACE OF REDELIVERY. CHARTERERS & OWNERS TO JOINTLY APPOINT A LOCAL INDEPENDENT SURVEYOR FOR PERFORMING THESE SURVEYS. TIME AND EXPENSES FOR THESE SURVEYS TO BE SHARED EQUALLY BETWEEN OWNERS AND CHARTERERS.

-3.75PCT ADDCOM + 1.25PCT BROKERAGE TO BRS

-OTHERWISE CHRTS RIDER CLAUSES WITH LOGICAL AMENDMENTS AS PER AGREED MAIN TERMS. OTHERWISE NYPE 2015 FORM. END

PLS CFM ABV IN LINE WITH YR NOTES TKS YR EFFORTS/SUPPORT IN CONCLUDING THIS FIXTURE

Thanks and best regards,

Clark Kent Fixing Team Clark Kent & Sons [email protected]



Date: 23 November 2017 From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day

RE : MV THANOS QUEST – CARGO DAMAGE CLAIM

Fol rcvd from Chars

Qte

The time extension that you gave us in relation to the bringing of a claim for cargo damage expires shortly. Please grant us a further 3 month extension in relation to our time for bringing a cargo claim. We have been having detailed discussions with the Receivers in relation to the quantum of the claim. We have also been discussing the issues that arise in relation to the Contract of Carriage. However, the Receivers have not yet started any claim. We confirm that we are granting back-to-back time extensions to the Receivers.

Unqte

Kind regards


Date: 28.08.2017 From: Clark Kent Bulk <[email protected]> To: Omega Chartering <[email protected]>


Foll fm Owners

Qte

Thank you for your message. We are prepared to grant, without prejudice, a further 3 month time extension.

Kind regards

Unqte


Date: 23 August 2017 From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day


Fol rcvd from Chars

Qte




The extension that you gave is in relation to the time for making a claim expires shortly. In light of the amount now known to be involved, discussions with receivers are ongoing. Please grant us another 3 month extension in the meantime.

Unqte

Kind regards


Date: 29.05.2017 From: Clark Kent Bulk <[email protected]> To: Omega Chartering <[email protected]>


Foll fm Owners

Qte

We have discussed this with our Club and are prepared to give a 3 month extension.

Kind regards

Unqte


Date: 23 May 2017 From: Clark Kent Bulk <[email protected]> To: Hulk Hulls <[email protected]>

Good day


Fol rcvd from Chars

Qte

Please grant 3 month time extension in relation to claim for cargo damage under the Charter. We have had further discussions with the Receivers in relation to what will be a substantial claim.

Unqte

Kind regards






Ms M. Walker Armada Street Arbitration Chambers London

Sent by email

15 October 2018

Dear Madam,

Re : MV THANOS QUEST - CP DD 18.03.2016

We act for the claimant owners in respect of disputes which have arisen between the parties in relation to the above charterparty.

Pursuant to the arbitration agreement contained in the charterparty (copy attached) we should like to appoint you as arbitrator on behalf of the claimant.

We look forward to receiving your confirmation of acceptance of this appointment, following which we shall notify the respondent charterers of your appointment and invite them to appoint a second arbitrator, should they wish to do so.

We also look forward to receipt of your invoice in relation to your appointment fee together with details of the bank account to which remittance should be made.

Thank you for your assistance.

Yours truly,

Thor & Loki Brothers Deck House Mooring Lane London EC3


Thor & Loki Brothers Deck House Mooring Lane London EC3 Sent by email

16 October 2018 Dear Sirs, Re : MV THANOS QUEST - CP DD 18.03.2016 Thank you for your letter appointing me as arbitrator on behalf of the claimant. As you can see from my CV I am a full time arbitrator with over 20 years of experience of arbitrating commercial disputes, many involving charterparties. I therefore consider that I have the requisite knowledge and experience to deal with this matter. I also have availability to accept this appointment and, to the best of my knowledge, I have no conflict of interest in relation to this matter or the parties to the charterparty. I therefore accept this appointment on behalf of the claimant. Yours faithfully, Mary Walker Armada Street Arbitration Chambers


From : [email protected] To : [email protected] Date : 16 October 2018 Re : MV THANOS QUEST - CP DD 18.03.2016 - NOTICE OF ARBITRATION Dear Sirs, We represent the Owners of the above Vessel. We refer to the disputes which exist between yourselves and our clients regarding hull cleaning costs and damages for loss of profit from subsequent fixture. Having been unable to resolve this matter amicably between the parties, our clients now have no option but to claim their losses from you in arbitration as provided for in the charterparty referred to above. To this end, please note that we have appointed Ms Mary Walker as arbitrator on behalf of our clients. Ms Walker’s details and cv can be found on the Armada Street Arbitration Chambers website : [email protected] In order to limit the cost involved in arbitrating our clients’ disputes, we invite you to agree to the appointment of Ms Walker as sole arbitrator to determine this dispute. Otherwise, the terms of the arbitration agreement contained in the charterparty shall apply. Regards, Thor & Loki Brothers Deck House Mooring Lane London EC3




From : [email protected] To : [email protected] Date : 26 October 2018 Re : MV THANOS QUEST - CP DD 18.03.2016 Dear Sirs, Thank you for your email appointing me as arbitrator on behalf of Omega Chartering Ltd. I am a chartering man myself, with many years of commercial experience. I also accept appointments as arbitrator, as you know. I can definitely help you and am happy to accept your appointment. I attach my invoice in respect of my appointment fee and look forward to hearing more about this charterparty dispute once the tribunal has been constituted. Kind regards, Captain Eric Masterson Master Surveys From : [email protected] To : [email protected] Date : 26 October 2018 Re : MV THANOS QUEST - CP DD 18.03.2016 Dear Captain, We chartered MV THANOS QUEST on 18 March 2016 and the whole fixture has been a bit of a nightmare. Charterers have been trying to resolve various problems with Owners but Owners have been really unreasonable and now we have received a notice from Owners’ lawyers telling us they have started arbitration and appointed an arbitrator. We are not quite sure what to do but think our next step is to appoint an arbitrator of our own. Can you please help ? Thank you so much. Regards, Operations Dept (UK Office) Omega Chartering Ltd






From : [email protected] To : [email protected]; [email protected] cc : [email protected] Date : 30.10.2018 Re : MV THANOS QUEST - CP DD 18.03.2016 – FIRST DIRECTIONS Dear Sirs, My co-arbitrator and I have been appointed in relation to disputes which have arisen under the above charter. The tribunal is accordingly now constituted and we invite the parties to follow the procedural timetable set out by the procedural rules which govern this arbitration. Kind regards, Mary Walker On behalf of the Tribunal





Date : 7 December 2018 From : [email protected] To : [email protected]; [email protected] Cc : [email protected] Re : MV “THANOS QUEST” – C/P 18.03.2016 – Service of Defence Submissions – Without Prejudice Dear Sirs, We represent Charterers, Omega Chartering Ltd. We write to advise the Tribunal that we have today agreed with Messrs. Thor & Loki Brothers, acting on behalf of Owners, a time extension for service of Defence Submissions until 14 December 2018. Kind regards, Knight & Protector Solicitors





IN THE MATTER OF THE ARBITRATION ACT 1996

AND IN THE MATTER OF AN ARBITRATION

B E T W E E N :

PANTHER SHIPPING INC

Claimant / Owners

- and -

OMEGA CHARTERING LIMITED

Respondent / Charterers

M/V “THANOS QUEST”

Charterparty dated 18.03.2016

CLAIM SUBMISSIONS

The Charterparty

1. By a charterparty dated 18.03.2016 (the “Charterparty”), the Claimant (“Owners”)

chartered the M/V “THANOS QUEST” (the “Vessel”) to the Respondent (“Charterers”)

for a time charter trip of about 50-55 days from West Coast to Wahanda carrying a cargo

of harmless bulk products.

2. The Charterparty, to which Owners will refer as necessary for its full terms and true effect,

comprised a fixture recap incorporating the NYPE 2015 form and additional rider clauses.

It provides, in relevant part:

Fixture Recap

“DEL WEST COAST ATDNSHINC

-LAYCAN 25-30 MARCH 2016 00:01/24:00HRS RESPECTIVELY…

-DURATION ABT 50-55 DAYS WOG

-REDEL DLOSP 1SP WAHANDA RANGE, PORT IN CHRTRS OPTION…

-HIRE USD 7500 DAILY INCLOT…


-OTHERWISE OMEGA RIDER CLAUSES WITH LOGICAL AMENDMENTS, ALTERATIONS IN ACCORDANCE WITH AGREED MAIN TERMS

-OTHERWISE NYPE 2015 FORM TERMS TO APPLY.”

Rider Clauses

“83. BIMCO Hull Fouling Clause for Time-Charter Parties to Apply with Sub-Clause (a) to Read as follows:

(a) If, in accordance with Charterers’ orders, the Vessel remains at or shifts/sails within a place, anchorage and/or berth and/or port(s) for an aggregated period exceeding:

(i) A period of 25 days in a tropical zone or seasonal tropical zone; or

(ii) A period of 30 days outside such zones any warranties concerning speed and consumption shall be suspended pending inspection of the Vessel’s underwater parts including, but not limited to, the hull, sea chests, rudder and propeller.

(b) In accordance with sub-Clause (a), either party may call for inspection which shall be arranged jointly by Owners and Charterers and undertaken at Charterers’ risk, cost, expense and time.

(c) If, as a result of the inspection either party calls for cleaning of any of the underwater parts, such cleaning shall be undertaken by the Charterers at their risk, cost, expense and time in consultation with the Owners…

(d) Cleaning in accordance with this Clause shall always be carried out prior to redelivery. If, nevertheless, Charterers are prevented from carrying out such cleaning, the parties shall, prior to but latest on redelivery, agree a lump sum payment in full and final settlement of Owners’ costs and expenses arising as a result of or in connection with the need for cleaning pursuant to this Clause.”

Performance of the Charterparty

3. The Vessel was delivered into the Charterparty on 29.03.2016. Loading of the cargo was

completed on 20.04.2016, whereupon the Vessel sailed for Wahanda.

4. On 07.05.2016, the Vessel arrived at the discharge port of Wahanda. She was unable to

proceed immediately to berth and instead waited at the anchorage.

5. On 08.06.2016, Owners sent an e-mail to Charterers (via the Vessel’s managers and

brokers, respectively Hulk Hulls (“Managers”) and Clark Kent & Sons (“Brokers”))

noting that the Vessel was expected to spend more than thirty days at the port of Wahanda.


Owners requested that Charterers confirm the arrangements for cleaning the Vessel’s hull

in accordance with clause 83 of the Charterparty.

6. On the same day, Charterers responded to Owners by e-mail (via Brokers and Managers)

stating that underwater hull cleaning could not be performed at Wahanda. Charterers

offered to pay Owners USD 15,000 in lieu of cleaning.

7. On 09.06.2016, Owners sent an e-mail to Charterers (via Managers and Brokers) stating

that since there had been no inspection and it was not possible to know the extent of any

fouling, Owners could not agree a lump sum for cleaning. Instead, Owners stated that they

would arrange an inspection and cleaning at the next convenient port.

8. On the same day, Charterers responded (via Brokers and Managers) stating that Charterers

would pay the cost of underwater cleaning against an original invoice.

9. On 15.06.2016, Owners chartered the Vessel to Champion Chartering Corp (“Champion”)

for a period of two years, plus a further two years in charterers’ option (the “Next Fixture”).

Delivery under the Next Fixture was to be DLOSP Wahanda with a laycan of 22-28 June

2016. The daily rate of hire was USD10,500.

10. On 18.06.2016, Owners sent an e-mail to Charterers (via Managers and Brokers) reserving

their right to claim against Charterers for losses incurred as a result of the Vessel being re-

delivered without hull cleaning having been performed.

11. On 26.06.2016, Owners sent a further e-mail to Charterers (via Brokers) stating that the

Vessel had been thoroughly fouled during her extended stay at Wahanda. The e-mail further

stated that no cleaning could take place in East Coast ports and asked Charterers to confirm

their intention with regard to cleaning in accordance with clause 83 of the Charterparty.

12. On 27.06.2016, Charterers responded to Owners (via Brokers and Managers) stating that

they could arrange cleaning at North Titan port if Owners were sailing north. Alternatively,

Charterers offered to pay a lump sum of USD20,000 in lieu of cleaning.

13. On 28.06.2016, Champion gave notice to Owners that they were cancelling the Next

Fixture, since the Vessel had missed the laycan.


14. On 29.06.2016, Owners sent an e-mail to Charterers (via Brokers) calling upon Charterers

to arrange for the Vessel’s hull to be cleaned at South Island following the completion of

discharge at Wahanda.

15. On 30.06.2016, Charterers responded to Owners (via Brokers and Managers) stating that

any voyage to South Island would be non-contractual and that cleaning could not be

performed at Wahanda. Charterers offered to pay USD30,000 in lieu of cleaning.

16. On the same day, Owners responded to Charterers (via Brokers) giving them one final

opportunity to comply with their contractual obligations under clause 83 of the Charterparty

by arranging for underwater cleaning prior to re-delivery.

17. The Vessel was re-delivered on 30.06.2016, discharge of the cargo having completed on

the same day.

18. The Vessel’s hull was cleaned at South Island between 01.07.2016 and 03.07.2016 at a

total cost of USD41,000.

19. On 01.08.2016, Owners presented their Final Hire Statement to Charterers (the “FHS”).

The FHS includes costs of USD97,766.64 in relation to cleaning the Vessel’s hull at South

Island after re-delivery of the Vessel. Charterers have failed to pay the amount of

USD96,567.42 but have otherwise paid the sums due under the FHS.

20. On 04.07.2016, Owners chartered the Vessel to Fairwind International (“Fairwind”) for a

time charter trip of about 50-55 days (the “Replacement Fixture”). Delivery under the

Replacement Fixture was to be DLOSP South Island with a laycan of 4-6 July 2016. The

daily rate of hire was USD11,000.

Charterers’ Breaches of the Charterparty

21. In the premises, Charterers acted in breach of the Charterparty in that they:

PARTICULARS OF BREACH

(1) Failed to perform hull cleaning prior to re-delivery; and

(2) Failed to re-deliver the Vessel prior to the expiry of the maximum period of the

Charterparty.


Loss and Damage

22. As a result of the matters complained of above, Owners have suffered loss and damage:

PARTICULARS OF LOSS AND DAMAGE

(1) Hull cleaning costs: USD41,000.00;

(2) Costs of the voyage to South Island in order to perform hull cleaning:

USD55,567.42

(3) Damages for late re-delivery: USD15,330,000.00 (loss of hire under the Next

Fixture, calculated as 4 years at USD10,500 per day);

Total: USD15,426,567.42

Interest

23. Owners claim interest on all sums found to be due to them pursuant to section 49 of the

Arbitration Act 1996, for such period, at such rate and compounded at such rests as the

Tribunal thinks fit.

AND the Claimant claims:

(1) Damages in the amount of USD15,426,567.42;

(2) Interest as particularised above; and

(3) Costs.

Served this 9th day of November 2018 by Thor & Loki Brothers of Deck House, Mooring

Lane, London EC3, Solicitors for the Claimant.




B E T W E E N :


Claimant / Owners

- and -





DEFENCE AND COUNTERCLAIM SUBMISSIONS

Introduction

1. In these Defence and Counterclaim Submissions, unless otherwise stated:

(1) References to paragraph numbers are to the paragraphs of the Claim Submissions

dated 09.11.2018;

(2) The headings and abbreviations used in the Claim Submissions are adopted without

admission;

(3) No admissions are made to any of the allegations in the Claim Submissions.

DEFENCE

The Charterparty

2. Paragraphs 1 and 2 are admitted.

3. The Charterparty, to which Charterers will refer as necessary for its full terms and true

effect, also contained the following terms:


NYPE 2015 Form

“8. Performance of Voyages…

[T]he Charterers shall perform all cargo handling, including but not limited to loading, stowing, trimming, lashing, securing, dunnaging, unlashing, discharging, and tallying, at their risk and expense, under the supervision and responsibility of the Master…

17. Off-Hire

In the event of loss of time from deficiency and/or default and/or strike of officers or ratings… or detention by Port State control or other competent authority for Vessel deficiencies… or by any similar cause preventing the full working of the Vessel, the payment of hire and overtime, if any, shall cease for the time thereby lost… All bunkers used by the Vessel while off-hire shall be for the Owners’ account…

27. Cargo Claims

Cargo claims as between the Owners and the Charterers shall be settled in accordance with the Inter-Club NYPE Agreement 1996 (as amended 1 September 2011), or any subsequent modification thereof.”

Rider Clauses

“53. Inter-Club Agreement

Owners agree that liability for cargo claims, as between Owners and Charterers, shall be apportioned as specified by the Inter-Club New York Produce Exchange Agreement effective from February 20, 1970 and 1996 as amended September 2011 and any amendments thereto.”

4. The Inter-Club Agreement (the “ICA”) states, in relevant part:

“The apportionment…

(8) Cargo Claims shall be apportioned as follows…

(a) Claims in fact arising out of unseaworthiness and/or error or fault in navigation or management of the vessel:

100% Owners

save where the Owner proves that the unseaworthiness was caused by the loading, stowage, lashing, discharge or other handling of the cargo, in which case the claim shall be apportioned under sub-clause (b).

(b) Claims in fact arising out of the loading, stowage, lashing, discharge, storage or other handling of cargo:


100% Charterers

Unless the words “and responsibility” are added in clause 8 or there is a similar amendment making the Master responsible for cargo handling in which case:

50% Charterers 50% Owners.”


5. Paragraphs 3-20 are admitted.

6. On 25.05.2016, Charterers were informed by Wahanda Port Services that hull cleaning

could not be performed at the Wahanda anchorage for visibility reasons.

7. On 23.06.2016, Charterers obtained a quotation from North Titan Shipbuilders for the

cleaning of the Vessel’s hull at North Titan port. The quotation was in the amount of

USD33,000.00.

8. Upon arrival at Wahanda, the Vessel was not allowed to berth by the Port Authority as the

Port Authority had reasonable grounds for suspecting that one or more crew members was

carrying the Ebola virus. This caused a delay to the Vessel berthing from 07.05.2016 until

26.06.2016.

9. Upon discharge of the Cargo at Wahanda, the cargo was found to be severely wet damaged.

The cause of the damage was negligence on the part of the crew. In particular, the crew

negligently pumped water into the cargo hold while ballasting prior to leaving the berth at

West Coast. As a result of the wet damage, the receivers of the cargo brought a claim

against Charterers (the “Cargo Claim”).


10. As to paragraph 21:

(1) Paragraph 21(1) is denied. It was unreasonable of Owners to reject Charterers’ offer

to have the Vessel’s hull cleaned at North Titan port. As such, Charterers are

relieved of their obligation to perform hull cleaning;

(2) Paragraph 21(2) is admitted.


Loss and Damage


(1) In relation to paragraph 22(1), it is admitted (subject to Owners establishing

liability) that Charterers are liable for the reasonable costs of cleaning the Vessel’s

hull. However, those costs are no more than USD33,000. It is denied that Owners

are entitled to claim more than that sum;

(2) Paragraph 22(2) is denied. Even if liability is established, Charterers are not liable

for any costs other than the lump sum cleaning costs;

(3) Paragraph 22(3) is denied:

(a) Charterers have paid hire for the period of overrun of the Charterparty.

Owners would only be entitled to damages calculated as the difference

between the Charterparty rate of hire and the market rate of hire for the

period of overrun. Owners are not entitled to damages calculated as the loss

of hire under the Next Fixture. In the absence of any plea from Owners as

to the applicable market rate, no admissions are made in respect of the same;

(b) In the alternative, the relevant period of the Next Fixture for the

calculation of damages would be the minimum period of two years, not the

maximum period of four years. Further, Owners must give credit for hire

received under the Replacement Fixture.

12. Further or alternatively, Charterers are entitled to and do set off their counterclaim below

against any sums for which they are found to be liable to Owners.

Interest

13. The claim to interest in paragraph 23 is denied on the basis that there is no principal liability

on which interest could accrue.

COUNTERCLAIM

14. Paragraphs 2-9 above are repeated.


Charterers’ Claims

15. In the premises:

(1) 100% of the Cargo Claim is for Owners’ account pursuant to clause 8(a) of the ICA.

Charterers are entitled to be indemnified by Owners in an amount to be quantified.

Alternatively, Charterers claim damages in like amount for Owners’ breach of

clauses 27 and 53 of the Charterparty. In the further alternative, 50% of the Cargo

Claim is for Owners’ account pursuant to clause 8(b) of the ICA;

(2) The Vessel was off-hire from 07.05.2016 until 26.06.2016 pursuant to clause 17 of

the Charterparty. Charterers have therefore overpaid hire in the amount of

USD375,000.00. Charterers claim restitution of that sum, or alternatively damages.

Interest

16. Charterers claim interest on all sums found to be due to them pursuant to section 49 of the

Arbitration Act 1996, for such period, at such rate and compounded at such rests as the

Tribunal thinks fit.

AND the Respondent counterclaims:

(1) An indemnity for 100% of the Cargo Claim (to be quantified), alternatively damages in like

amount;

(2) The amount of USD 375,000.00, alternatively damages in like amount;

(3) Interest as particularised above; and

(4) Costs.

Served this 17th day of December 2018 by Knight & Protector Solicitors of Knightrider

Court, London EC4, Solicitors for the Respondent.




B E T W E E N :


Claimant / Owners

- and -





REPLY AND DEFENCE TO COUNTERCLAIM SUBMISSIONS

Introduction

1. In these Reply and Defence to Counterclaim Submissions, unless otherwise stated:

(1) References to paragraph numbers are to the paragraphs of the Defence and

Counterclaim Submissions dated 17.12.2018;

(2) The headings and abbreviations used in the Claim Submissions and Defence and

Counterclaim Submissions are adopted without admission;

(3) No admissions are made as to any of the allegations in the Defence and

Counterclaim Submissions.

REPLY

The Charterparty

2. Paragraphs 3 and 4 are admitted.


3. The ICA, to which Owners will refer as necessary for its full terms and true effect, also

provides:

“Time Bar

(6) Recovery under this Agreement by an Owner or Charterer shall be deemed to be waived and absolutely barred unless written notification of the Cargo Claim has been given to the other party to the charterparty within 24 months of the date of delivery of the cargo or the date the cargo should have been delivered, save that, where the Hamburg Rules or any national legislation giving effect thereto are compulsorily applicable by operation of law to the contract of carriage or to that part of the transit that comprised carriage on the chartered vessel, the period shall be 36 months. Such notification shall if possible include details of the contract of carriage, the nature of the claim and the amount claimed.” (Underlining added).


4. Paragraphs 6-9 are not admitted. Charterers are required to prove the same.



(1) Paragraph 10(1) is denied. It was not unreasonable of Owners to reject Charterers’

offer. At any rate, Charterers would not be relieved of their obligation to perform

hull cleaning even if Owners acted unreasonably;

(2) The admission in paragraph 10(2) is noted.

Loss and Damage


(1) It is denied that the reasonable costs of cleaning the Vessel’s hull are only

USD33,000 and/or that Owners are not entitled to any costs other than the lump

sum cleaning costs. Owners are entitled to recover all of the costs claimed in

paragraphs 22(1) and 22(2) of the Claim Submissions;


(2) Paragraph 11(3) is denied. At the time of entering into the Charterparty, Charterers

had special knowledge of the Next Fixture. As such, Owners are entitled to recover

all of the damages claimed in paragraph 22(3) of the Claim Submissions.

DEFENCE TO COUNTERCLAIM

7. Paragraphs 2 and 3 above are repeated.

Charterers’ Claims

8. In the premises:

(1) Paragraph 15(1) is denied. Charterers failed to give the written notification of the

Cargo Claim required by clause 6 of the ICA. As such, the Cargo Claim is time-

barred. Further or alternatively, it is denied that the Cargo Claim would fall to be

apportioned under clause 8(a) of the ICA, since the claim was not caused by

unseaworthiness and/or error or fault in the navigation or management of the vessel;

(2) Paragraph 15(2) is denied. Even if delay was caused as alleged in paragraph 8

(which is not admitted), this would not amount to an off-hire event under clause 17

of the Charterparty. Hire therefore continued to accrue.

Interest

9. It is denied that Charterers are entitled to any interest, on the basis that Owners have no

liability to Charterers upon which interest could accrue.

Served this 28th day of December 2018 by Thor & Loki Brothers of Deck House, Mooring

Lane, London EC3, Solicitors for the Claimant.




B E T W E E N :


Claimant / Owners

- and -





The Arbitral Tribunal composed of Ms Walker and Capt. Masterson hereby make the following

procedural directions in this reference :

1. On 7 March 2019 we met with solicitors for the Claimant and solicitors for the

Respondent.

2. We discussed the procedures which should be followed in the Arbitration and were

advised that the parties had been able to identify certain points of common ground. We

shall record these in a Procedural Order upon receipt of an agreed draft from the

solicitors.

3. The factual issues which may be found to be open shall be determined in accordance

with the procedures found in the Rules of the International Maritime Law Arbitration

Moot 2019 (Rules).

4. The materials contained in the final published version of the Moot Scenario, as

amended and/or elaborated upon by Procedural Orders, shall be taken to be the agreed

bundle of documents.

5. It was agreed that the Tribunal would be assisted by more detailed written submissions

and that a memorandum in support of the respective positions of the Claimant and

Respondent be filed on Monday 29 April 2019 by 1600 hours Australian Western

Standard time (GMT +8) in accordance with the Rules.

6. Oral argument is to be scheduled for the period 1 July – 5 July 2019 in Rotterdam,

Netherlands. Before the hearing the Tribunal shall appoint a third arbitrator who shall

be the chairman unless the parties shall agree otherwise.

7. As to the length of the oral hearing, both parties’ solicitors emphasised their instructions

that the points which remained in issue were to be determined by the Tribunal after oral

argument and provided us with their agreed time estimate for the arguments on these

issues. We shall set the length of the oral hearing accordingly in due course.

Dated this 8th day of March 2019

Mary Walker

On behalf of the Tribunal



B E T W E E N :


Claimant / Owners

- and -





PROCEDURAL ORDER NO. 2

This procedural order contains answers to requests for clarifications and identifies points which

were agreed by the parties at the directions hearing of 7 March 2019 to be common ground.

Where questions have not been answered, it should be assumed either that they are not relevant,

the answer is apparent on the facts already provided, the omission is deliberate, or that the

resolution of the issue is a matter for the parties to determine by reference to the law and by

drawing suitable inferences.

Minor typographical errors and mix ups occur in any business context. If the error is apparent

then no clarification is provided.

The Rules state that “Teams are not to introduce additional facts or evidence into the moot

unless they are a logical and necessary extension of the given facts.”

Background Facts

1. The laws of Challaland closely resemble the laws of the United States and the laws of

Bao Kingdom closely resemble the laws of Hong Kong.

2. The attached map indicates the positions of the relevant ports within the Wahanda

range. Wahanda is not in a tropical zone.

3. All newspaper sand social media accounts referred to in the documents were publicly

available and widely read.

Contemporaneous Events

4. The vessel sailed from the loadport on 20 April 2016.

5. Neither party ordered an inspection at the redelivery port but the extent of the hull

fouling is not disputed – photograph attached.

6. Underwater hull cleaning and propeller polishing services were not available at

Wahanda but were available at both North Titan and South Island ports (images

attached). The vessel ultimately arrived at South Island for this purpose on 2 July 2016

as recorded in the Statement of Disbursements.

7. The vessel obtained free pratique and was cleared to berth on 26 June 2016, following

which discharge began on 27 June 2016.

8. Pages 47-49 of the document bundle were neither attached to the Preliminary Survey

Report nor provided to Mekon Surveyors.

9. The Claimant accepts that it undertook its own investigations into the incident which

confirmed the findings of the Preliminary Survey Report in relation to the cause of the

damage suffered to the cargo.

Subsequent Events

10. The Receivers made a valid cargo claim within the time extensions granted to them by

the Respondent.

11. The extent of the cargo damage was limited to that cargo stowed in lower hold No.2

and the quantum of Receivers’ claim in respect of which the Respondent seeks an

indemnity, alternatively damages, has been agreed to amount to 2,000 mt of cargo at a

value of US$ 50 per kg.

Procedural Matters

12. A further short extension for service of defence submissions until 17 December 2018

was granted by the Claimant on 14 December 2018.

13. In the event that the Respondent is held liable for the time lost in sailing to and

undertaking hull cleaning at South Island, the Respondent does not dispute the timings

set out in the final hire statement.

14. The parties have agreed that argument on the Claimant’s claim for damages for late re-

delivery shall be limited to the issue of liability in principle, leaving the calculation of

damages, if applicable, to be reserved.

15. The Claimant does not dispute that the Respondent informed it of the cargo claim in

2016. The Claimant does however dispute the nature and effect of the information

given, in particular its sufficiency for the purposes of Clause 6 of the ICA. The

Respondent accepts that details of the cargo claim and of the contract of carriage were

only provided to the Claimant during the course of this reference.

16. In the event that the Claimant is held liable for off hire, the Claimant does not dispute

the quantum claimed by the Respondent in respect of this head of claim.

Dated this 15th day of March 2019

Mary Walker

On behalf of the Tribunal