In London Arbitration 1/08 - 734 LMLN 2, the vessel was chartered on the Asbatankvoy form to discharge “One safe berth safe port
“DUES-TAXES-WHARFAGE. The Charterer shall pay all taxes, dues and other charges on the cargo, including but not limited to Customs overtime on the cargo... The Charterers shall also pay all taxes on freight at loading or discharging ports and any unusual taxes... The Vessel shall be free of charges for the use of any wharf, dock, place or mooring facility arranged by the Charterer for the purpose of loading or discharging cargo; however, the Owner shall be responsible for charges for such berth when used solely for the Vessel’s purposes, such as awaiting Owner’s orders, tank cleaning, repairs etc before, during or after loading or discharging.”
Additional typed Clause 3, with our emphasis again in bold, stated:
“Port charges, quay dues and similar dues on ship are for Owners’ account, but all dues and duties on cargoes shall be for Charterers’/Shippers’ account.”
Charterers arranged the discharging berth and invoiced Owners for “pier dues.” Owners commenced arbitration proceedings in which they claimed that pier dues were for Charterers’ account.
The Tribunal held that “pier dues” had the same meaning as “quay dues.” Additional typed Clause 3 clearly made these charges for Owners’ account. However, equally clearly, Clause 12 of the standard form made them for Charterers’ account.
As there was a clear conflict between the two terms, which could not be reconciled, the Tribunal applied the rule that provisions specifically agreed take precedence over those in standard form wording. Therefore, additional typed clause 3 overrode standard clause 12 and the pier dues were for Owners’ account.
william.blagbrough@incelaw.com
