ITIC Settles Dispute between Shipowner and Its Turkish Agent

zoomIllustration; Image Courtesy: MOL International Transport Intermediaries Club (ITIC) recently settled a dispute between a shipowner and its Turkish agent for losses arising from the refusal of Turkish port authorities to allow a vessel to berth because of its connection to Cyprus. Turkish regulations prohibit any vessel directly or indirectly related to the Republic of Cyprus from calling at Turkish ports. The owner was an existing customer of the agency group appointed to handle the ships call in Turkey, but had not called at this particular Turkish port before. In the agents pre-arrival messages to both owners and charterers, it mentioned that anything linking the vessel to Cyprus could lead to the ship not being allowed to berth. In spite of the agents express warning to its principal, a document was sent to the agent showing the address of the Panamanian-registered owning company as being care-of a company in Cyprus. The agent failed to notice the address and the documentation was forwarded to the authorities. After the vessel was refused permission to berth, the agent maintained that the owner had been warned about the embargo of all things Cypriot, and had failed to take the necessary action, ITIC said. The owner, meanwhile, claimed that the agent should have carefully reviewed the document. Accordingly, it deducted its alleged losses from other sums due to the agency group. Although the owner ultimately agreed to accept 50 percent responsibility for the incident, this still left the agency group with a shortfall of USD 50,000, which was reimbursed by ITIC.