St. Ioannis Shipping Corporation, a Corporation v. Zidell Explorations, Inc., a Corporation

By libel in personam, appellant, owner of the ship “Ioannis K,” seeks to recover demurrage from appellee, as shipper, in connection with a shipment of scrap metal from Portland, Oregon, and Tacoma, Washington, to Osaka and Tokyo, in Japan.

In both Japanese ports cargo is discharged from ships onto lighters at buoys stationed out in the harbor. Ships on arrival are assigned to buoys by the port authorities. On its arrival at both Osaka and Tokyo the “Ioannis K” encountered congestion in the harbor. On clearing with the port authorities, she was assigned to a position outside the harbor until, by rotation (on a first-come-first-served basis), she could be assigned to a discharge buoy. The issue presented by appellant’s libel is whether the delay after the arrival at port and before discharge could be commenced is chargeable to the ship owner or to the shipper. Upon this issue the district court rendered judgment in favor of appellee shipper, and the ship owner has appealed.

In the district court appellee contended that its contract with appellant constituted a “berth charier” as distinguished from a “port charter,” and that lay time would not commence to run until the ship had…