HRA, IBF Extended Risk Area & JWC Listed areas in Indian Ocean were at the center of discussion in London Arbitration 13/18.
First issue was whether charterers were liable to reimburse owners for crew bonuses. As per BIMCO piracy clause this depended on the whether owners were obliged to pay such to the crew under the employment contract. POEA rules (which governed the crew contracts) said that there was no obligation on owners to pay crew bonus for a transit of the Extended Risk Zone unless vessel had been attacked. The vessel was not attacked and hence the owners claim failed.
Second issue was whether the owners had breached the duty of prosecuting voyage with utmost despatch when their vessel undertook a longer route from Richards Bay to Strait of Hormuz which skirted the border of Pakistan and Iran instead of taking a much shorter direct route even though they had armed guards and were complying with BMP guidelines. Arbitrators held the owners to have acted unreasonably as given the measures owners had employed there was no risk from pirates. Charterers were awarded hire and fuel costs (this part of decision can be debated!).
There were many other issues in this Arbitration which are better left for another post.
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