NHE航运有限公司(NHE SHIPPING INC.) v. 江苏四海荣进出口有限公司

At a glance

Parties

NHE Shipping Inc. (NHE航运有限公司, Panama) v. Jiangsu Sihairong Import & Export Co., Ltd. (江苏四海荣进出口有限公司, Lianyungang, China)

Case no.

(2020)苏72协外认1号

Court

Nanjing Maritime Court (南京海事法院), People's Republic of China

Underlying award(s)

London ad hoc award of 23 June 2020 by sole arbitrator Ian Gaunt, with correction memorandum of 1 July 2020

Forum and rules

Application for recognition and enforcement under the 1958 New York Convention and Article 283 of the PRC Civil Procedure Law; underlying arbitration in London under English law, London Maritime Arbitrators Association general procedure

Treaty

New York Convention 1958 (Article V)

Court

Wang Tianhong (presiding judge), Pan Junfeng, Wu Xia

Sector

Shipping; voyage charter (nickel ore)

Outcome

The award and its correction memorandum were recognised and enforced (ruling of 20 August 2021).

Amount

Award: USD 438,782.78 plus interest at 4.5% a year, compounded quarterly, from 11 November 2019 (after crediting the deposit of RMB 1,100,000, equal to USD 150,000, against a claim of USD 588,782.78); arbitration fees of GBP 4,250 plus interest; recoverable legal costs. Court application fee RMB 34,541 charged to the respondent.

The dispute

On 29 September 2019 NHE Shipping, as owner, and Jiangsu Sihairong, as charterer, signed a charter confirmation for the vessel "海澜之衡" to carry nickel ore from Morowali, Indonesia, to a port in northern China. The charterer paid a performance deposit of RMB 1.1 million (equal to USD 150,000). On 28 October 2019, after the vessel had arrived at the loading port, the charterer cancelled the charter, citing a change in Indonesian policy on nickel ore. NHE treated this as a fundamental breach and started arbitration in London under clause 23 of the charter confirmation (London arbitration, English law). The charterer did not take part, and the sole arbitrator Ian Gaunt issued a default award in NHE's favour. NHE then applied to the Nanjing Maritime Court to recognise and enforce the award. The respondent was summoned but did not appear and filed no written response.

Key holdings

1. The award was made in London under the charter confirmation, so it is a foreign maritime arbitral award. China and the United Kingdom are both parties to the New York Convention, so the application is examined under the Convention and Article 283 of the Civil Procedure Law. As the maritime court for the respondent's domicile in Lianyungang, the Nanjing Maritime Court has jurisdiction. p. 4
2. The grounds in Article V(1) of the Convention must be raised and proved by the respondent. Sihairong did not appear. It raised no objection to the validity of the arbitration agreement, the appointment of the arbitrator, excess of mandate, the composition of the tribunal or the procedure, and it offered no evidence. No Article V(1) ground was therefore established. p. 4
3. Under Article V(2), which the court examines on its own motion, the dispute arose from performance of a charter party. It is a contractual commercial relationship between equal parties, which may be submitted to arbitration, and it does not affect China's social public interest. No ground under Article V(2) applies. p. 4
4. The court recognised and enforced Ian Gaunt's award of 23 June 2020, including the correction memorandum of 1 July 2020. The court acted under Articles 144 (proceeding by default) and 283 of the Civil Procedure Law and Article V of the Convention. The application fee of RMB 34,541 is borne by the respondent. p. 5

Procedural history

1. 29 September 2019Charter confirmation signed; the charterer pays a deposit of RMB 1,100,000.
2. 28 October 2019The charterer cancels the charter, citing a change in Indonesian nickel ore policy.
3. 10 December 2019NHE appoints Ian Gaunt as arbitrator and sends the notice of arbitration to three of the charterer's email addresses. The charterer appoints no arbitrator, so Ian Gaunt becomes sole arbitrator.
4. 17 January 2020NHE files its claim submissions. The charterer files no defence.
5. 23 June 2020Default award issued in London; a correction memorandum follows on 1 July 2020.
6. 1 September 2020The Nanjing Maritime Court accepts NHE's application for recognition and enforcement.
7. 20 August 2021Ruling recognising and enforcing the award.

Tribunal, counsel and experts

Decided by

• Ian Gaunt Sole arbitrator, London ad hoc arbitral tribunal (underlying award) — appointed by the claimant (became sole arbitrator because the respondent did not appoint an arbitrator)

For the claimant

北京大成（南京）律师事务所

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Keywords

• New York Convention
• Article V
• recognition and enforcement
• foreign maritime arbitral award
• voyage charter
• nickel ore
• Morowali
• Indonesia export policy
• London arbitration
• LMAA
• default award
• public policy
• arbitrability
• Nanjing Maritime Court
• Gencon 94
• Civil Procedure Law Article 283
• Ian Gaunt

Summary generated with AI from the published documents — refer to the award for the authoritative text.