Arbitration- Laytime Deductions For Ballasting & Crude Oil Washing

Some of the disputes in this arbitration centred around the time used for ballasting and crude oil washing.

The time used for ballasting was to count as used laytime and/or demurrage.

From the exhibits submitted, it was apparent that ballasting was required because of the restrictions imposed by the nature of the shore facilities. Then, the Charterers have argued that the sequence of discharging was incorrect, thereby causing the ballasting delay. What appears to have happened was that the vessel discharged from all her tanks rather than in a tank-by-tank sequence. When ballasting became necessary because of the height (air draft) limitations, discharging had to be halted so that cargo could be transferred internally, permitting the vessel to then ballast empty tanks.

In the normal course of vessel operation, and before cargo is discharged, the vessel usually submits its discharging plan, which is either accepted or modified by the receiving facility, depending on the circumstances. The evidence shows that Vessel was approved for discharge.

The time used for crude oil washing- 6 hours and 30 minutes- was not to count as used laytime and/or demurrage.

Whereas the second sentence of the crude oil washing clause 6 provided for some allowance of extra time for the operation, it also provided, in the first sentence, that the crude oil washing was to be done simultaneously with the discharging operations. The evidence showed that in some instances, the vessel interrupted the discharging operations to allow for crude oil washing to be carried out. It followed that these interruptions are not in accordance with the first sentence of this clause and hence the time used was not to count as laytime and/or demurrage.