The Excomm Marina - July 27, 1979

Oil Cargo Shortages - 0.5% allowance

Charterers argued that the customary allowance of 0.5% was an “anachronistic relic of an earlier date”. They said it was based solely on the ship’s own figures, and thus any inaccuracy in calibration would cancel out. The arbitrators thought that the allowance has been in effect for so many years that it may be considered as a custom of the trade “having the full force of law”. If the charterers wanted a different position it was in their power to change the situation by the words of the contract. They described the present system of ullaging oil cargoes as “far from an exact science” and listed a number of factors that make it impossible to measure exactly. They were strongly in favour of granting the owners the customary allowance, and said that other New York arbitrators are of a similar mind.