COALspot.com keeps you connected across the coal world
  • JANAURY 2021 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$ 75.84 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Wednesday, 29 August 18
IMPACT ON CHARTERPARTIES - TIME TO ACT NOW : NORTH P&I CLUB
North P&IKNOWLEDGE TO ELEVATE

The challenges introduced by the global sulphur cap are not exclusively technical. The new limits are likely to impact contracts and charterparties. Forward planning now could help to avoid painful disputes in the future.
 
Time charterparties will require particularly close attention, with more challenges anticipated for vessels already in long-term charterparties that span the enforcement date of 1 January 2020. Unfortunately, there is no single “magic” charterparty clause to deal with all of the issues that might arise. All bunker clauses will almost certainly need to be reviewed but other clauses might also need to be considered, depending upon the chosen method of compliance. Below, we look at some of the issues that we anticipate will more commonly arise.
 
Carriage of non-compliant fuel
It is likely that a prohibition on the carriage of non-compliant fuels will come into force on 1 March 2020 for vessels not fitted with Exhaust Gas Cleaning Systems (“EGCS” or “scrubbers”). Non-compliant fuels will have to be removed to avoid fines or the vessel being detained. Assuming such fuel is not consumed before 01.01.2020, who is obliged to arrange or pay for the removal of such fuel will depend upon the wording of the charterparty, so it will be important for this to be considered at the drafting stage. There may be significant logistical difficulties in removing non-compliant fuel and it is likely that the re-sale value will be less than the original purchase price. Issues might also arise over who owns the non-compliant fuel and who therefore has the right to remove it.
 
Definition of ‘high sulphur’ and low sulphur’
At the moment, vessels burn either ‘low sulphur’ (0.1%S max) fuel in ECAs or ‘high sulphur’ (3.5%S max) fuel outside ECAs. In 2020, there will be three sulphur types (<0.1%S, <0.5%S and >0.5%S). This raises the question: what will ‘low sulphur’ mean in 2020? Will it be <0.1% or <0.5%? It is therefore advisable to move away from the use of terms such as ‘high’ and ‘low’ sulphur but instead to specify the exact sulphur limit of fuel e.g. <0.5% sulphur content; <0.1% sulphur content etc.
 
Bunkers on redelivery (“BOR”)
When a vessel is redelivered by a time charterer, the charterparty usually requires that the vessel is redelivered with approximately the same quantities of ‘high sulphur’ and ‘low sulphur’ fuel as on board at delivery. The owner will usually be required to buy this fuel back at a certain price (often the same price as at delivery). ‘High sulphur’ fuel bought from the charterer at redelivery will have little value to the owner unless the vessel is fitted with scrubbers. BOR requirements in the charterparty might mean that the charterer can redeliver the vessel with insufficient compliant fuel on board to reach a bunker port. Therefore, Owners might want to ensure that BOR clauses are adjusted accordingly.
 
Bunker quality clause
Some bunker quality clauses require the charterer to provide fuel that complies with the international quality standard ISO 8217. However, not all fuels are covered by ISO 8217 (e.g. hybrids) so the bunker quality clause might need to be amended to ensure that the charterer is obliged to provide fuel of the correct specification, which is safe and suitable for the vessel, and in compliance with MARPOL and any other relevant regulations.
 
Fuel availability
Although it is anticipated that there will be enough compliant fuel available to meet demand, it may be geographically fragmented. So a vessel might trade in areas where compliant fuel cannot be supplied or even be unable to trade in such areas, such that trading limit clauses might need to be reviewed. The same is likely to be true for new hybrids/blends, and LNG is already known to have limited availability.
 
Bunker tank cleaning
Bunker tank cleaning will be needed if switching from heavy fuels to hybrid/blends/ distillates. Tank cleaning might also be needed before switching between different products, depending upon the advice given by the relevant fuel provider. Cleaning products will be needed, waste will need to be disposed of and time might be lost during the cleaning. Responsibility for all of this will depend upon the charterparty wording.
 
Performance warranties
Different fuels have different calorific values and energy densities. The performance of the vessel could be affected by any of the chosen compliance methods so the performance warranties might need to be amended. Owners should check with engine manufacturers.
 
Costs of installing an EGCS
It is unlikely that existing charterparties will expressly say who is to pay for a vessel to have an EGCS installed. If the charterer is likely to benefit in fuel cost savings then there may be scope for a commercial agreement as to who will pay.
 
Can owners be compelled to install an EGCS?
The Court of Appeal considered this type of issue in the Elli and the Frixos [2008] 2 Lloyd’s Rep. 119. In 2005, new MARPOL regulations came into force, which made it unlawful for any ship to carry fuel oil as cargo unless it was either double-hulled or double-sided. Expensive modifications would be required to the ships in question to allow them to comply with the new regulations. The Court found that the owners were in breach of certain clauses in the particular charterparties for not having carried out the necessary modifications, namely; a warranty relating to compliance with MARPOL and a clause requiring the vessel to have on board documents required by any applicable law to allow the vessels to trade. Installation of an EGCS is only one option for compliance and, as things currently stand, it will be possible to meet the new sulphur requirements without installing an EGCS. Therefore, the absence of an EGCS on a vessel will not necessarily put the vessel or its owner in breach of MARPOL or impact on the vessel’s documentation. Hence it seems likely that the Elli and the Frixos will not apply but it will depend on the facts of the individual case.
 
Fines for non-compliance
In the first instance, the owner will be responsible for paying any incurred penalties but they might be entitled to be indemnified by the charterer depending upon the charterparty terms. It might be less clear who will be responsible for lost time and costs if the vessel is detained by port state control.
 
Looking ahead
Early consideration of the above issues will be key to avoiding future headaches. The solutions will not be the same in every case and will be best considered in the context of the trade that the vessel is going to perform. Additional issues could arise as technologies develop and as we get an idea about availability of compliant fuels etc, which might necessitate further review of charterparties from time to time.
Source: North P&I Club


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Saturday, 23 January 21
GOVT PLANNING TO OPEN UP COAL MARKETING TO STREAMLINE PROCESS - THE INDIAN EXPRESS
The government is considering opening up coal marketing, Coal Secretary Anil Kumar Jain said on Thursday. Currently, production by Coal India is al ...


Thursday, 21 January 21
LNG MARKET RIDING HIGH, BUT WILL THE GAINS CONTINUE? - DREWRY
The LNG market started 2021 on a high note with Asian spot prices crossing $30 per MMBtu while LNG shipping rates recorded a high $350k per day due ...


Thursday, 21 January 21
CHINA'S SPOT THERMAL COAL PRICES REFRESH RECORD HIGH - MYSTEEL
Despite the moderate rebound in temperatures across most regions of China after late December’s deep-freeze, thermal coal prices in the count ...


Wednesday, 20 January 21
CORONAVIRUS OUTBREAK IN HEBEI HAS LIMITED IMPACT ON CHINA'S STEEL INDUSTRY - FITCH RATINGS
The recent Covid-19 outbreak in the steel producing hub Hebei will not have material impact on China’s steel industry, Fitch Ratings says. ...


Wednesday, 20 January 21
MARKET INSIGHT - INTERMODAL
While 2020 is finally behind us, its negative impacts are still hovering over the shipping market. That being said, it is still too early to even s ...


   1 2 3 4 5   
Showing 1 to 5 news of total 6209
News by Category
Popular News
 
Total Members : 27,258
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • New Zealand Coal & Carbon
  • Manunggal Multi Energi - Indonesia
  • BNP Paribas - Singapore
  • McKinsey & Co - India
  • Attock Cement Pakistan Limited
  • Planning Commission, India
  • World Bank
  • Glencore India Pvt. Ltd
  • Mitsui
  • Toyota Tsusho Corporation, Japan
  • Sojitz Corporation - Japan
  • IEA Clean Coal Centre - UK
  • NTPC Limited - India
  • CIMB Investment Bank - Malaysia
  • Billiton Holdings Pty Ltd - Australia
  • IBC Asia (S) Pte Ltd
  • Total Coal South Africa
  • Australian Coal Association
  • Global Green Power PLC Corporation, Philippines
  • Cebu Energy, Philippines
  • Bharathi Cement Corporation - India
  • CoalTek, United States
  • Mechel - Russia
  • GHCL Limited - India
  • JPMorgan - India
  • Cargill India Pvt Ltd
  • Bukit Baiduri Energy - Indonesia
  • Bangkok Bank PCL
  • ING Bank NV - Singapore
  • Indonesian Coal Mining Association
  • Thailand Anthracite
  • Directorate General of MIneral and Coal - Indonesia
  • Kalimantan Lumbung Energi - Indonesia
  • Pinang Coal Indonesia
  • Xindia Steels Limited - India
  • Eastern Energy - Thailand
  • Thermax Limited - India
  • NALCO India
  • Karbindo Abesyapradhi - Indoneisa
  • Central Electricity Authority - India
  • Bulk Trading Sa - Switzerland
  • Cosco
  • PetroVietnam Power Coal Import and Supply Company
  • SRK Consulting
  • Jorong Barutama Greston.PT - Indonesia
  • Arch Coal - USA
  • Parry Sugars Refinery, India
  • Holcim Trading Pte Ltd - Singapore
  • Jatenergy - Australia
  • UBS Singapore
  • EMO - The Netherlands
  • Gresik Semen - Indonesia
  • LBH Netherlands Bv - Netherlands
  • Larsen & Toubro Limited - India
  • Chettinad Cement Corporation Ltd - India
  • Anglo American - United Kingdom
  • Economic Council, Georgia
  • Ambuja Cements Ltd - India
  • Cardiff University - UK
  • IHS Mccloskey Coal Group - USA
  • Vijayanagar Sugar Pvt Ltd - India
  • Ernst & Young Pvt. Ltd.
  • Humpuss - Indonesia
  • JPower - Japan
  • PTC India Limited - India
  • Sree Jayajothi Cements Limited - India
  • Savvy Resources Ltd - HongKong
  • bp singapore
  • The India Cements Ltd
  • Lanco Infratech Ltd - India
  • Reliance Power - India
  • Maruti Cements - India
  • Mitra SK Pvt Ltd - India
  • Aditya Birla Group - India
  • Bhoruka Overseas - Indonesia
  • Mintek Dendrill Indonesia
  • The State Trading Corporation of India Ltd
  • Inspectorate - India
  • Fearnleys - India
  • Price Waterhouse Coopers - Russia
  • Maersk Broker
  • ASAPP Information Group - India
  • EIA - United States
  • Peabody Energy - USA
  • Petrochimia International Co. Ltd.- Taiwan
  • Global Coal Blending Company Limited - Australia
  • Videocon Industries ltd - India
  • Dalmia Cement Bharat India
  • Straits Asia Resources Limited - Singapore
  • Lafarge - France
  • Leighton Contractors Pty Ltd - Australia
  • UOB Asia (HK) Ltd
  • Singapore Mercantile Exchange
  • Central Java Power - Indonesia
  • Carbofer General Trading SA - India
  • GN Power Mariveles Coal Plant, Philippines
  • Barclays Capital - USA
  • Mitsubishi Corporation
  • Power Finance Corporation Ltd., India
  • Cigading International Bulk Terminal - Indonesia
  • Riau Bara Harum - Indonesia
  • Sical Logistics Limited - India
  • Simpson Spence & Young - Indonesia
  • KEPCO - South Korea
  • Ince & co LLP
  • Globalindo Alam Lestari - Indonesia
  • Therma Luzon, Inc, Philippines
  • Iligan Light & Power Inc, Philippines
  • Kapuas Tunggal Persada - Indonesia
  • Kaltim Prima Coal - Indonesia
  • Ministry of Mines - Canada
  • PowerSource Philippines DevCo
  • San Jose City I Power Corp, Philippines
  • Intertek Mineral Services - Indonesia
  • Energy Link Ltd, New Zealand
  • Grasim Industreis Ltd - India
  • Coalindo Energy - Indonesia
  • Freeport Indonesia
  • Borneo Indobara - Indonesia
  • Krishnapatnam Port Company Ltd. - India
  • Adani Power Ltd - India
  • Interocean Group of Companies - India
  • Independent Power Producers Association of India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Gujarat Mineral Development Corp Ltd - India
  • Vale Mozambique
  • Clarksons - UK
  • Directorate Of Revenue Intelligence - India
  • Petrosea - Indonesia
  • Deloitte Consulting - India
  • Indorama - Singapore
  • Jindal Steel & Power Ltd - India
  • Platts
  • Mercator Lines Limited - India
  • Indo Tambangraya Megah - Indonesia
  • Rio Tinto Coal - Australia
  • Bukit Makmur.PT - Indonesia
  • Indogreen Group - Indonesia
  • Renaissance Capital - South Africa
  • Banpu Public Company Limited - Thailand
  • Vitol - Bahrain
  • AsiaOL BioFuels Corp., Philippines
  • South Luzon Thermal Energy Corporation
  • Geoservices-GeoAssay Lab
  • Agrawal Coal Company - India
  • Moodys - Singapore
  • Siam City Cement - Thailand
  • Gujarat Electricity Regulatory Commission - India
  • Credit Suisse - India
  • Standard Chartered Bank - UAE
  • Minerals Council of Australia
  • Coaltrans Conferences
  • IMC Shipping - Singapore
  • Arutmin Indonesia
  • OPG Power Generation Pvt Ltd - India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Goldman Sachs - Singapore
  • MEC Coal - Indonesia
  • Inco-Indonesia
  • Adaro Indonesia
  • SASOL - South Africa
  • The Treasury - Australian Government
  • Kohat Cement Company Ltd. - Pakistan
  • VISA Power Limited - India
  • Orica Mining Services - Indonesia
  • ETA - Dubai
  • TNB Fuel Sdn Bhd - Malaysia
  • Asmin Koalindo Tuhup - Indonesia
  • Argus Media - Singapore
  • Kobe Steel Ltd - Japan
  • KPMG - USA
  • Timah Investasi Mineral - Indoneisa
  • Sucofindo - Indonesia
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Runge Indonesia
  • Bangladesh Power Developement Board
  • Baramulti Group, Indonesia
  • Indian School of Mines
  • White Energy Company Limited
  • Sindya Power Generating Company Private Ltd
  • Thriveni
  • Cemex - Philippines
  • Petron Corporation, Philippines
  • Orica Australia Pty. Ltd.
  • GMR Energy Limited - India
  • PNOC Exploration Corporation - Philippines
  • World Coal - UK
  • Samsung - South Korea
  • Merrill Lynch Bank
  • PLN - Indonesia
  • ANZ Bank - Australia
  • Oldendorff Carriers - Singapore
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Tata Chemicals Ltd - India
  • IOL Indonesia
  • Berau Coal - Indonesia
  • Bank of America
  • Gupta Coal India Ltd
  • Indonesia Power. PT
  • Shree Cement - India
  • BRS Brokers - Singapore
  • Indian Oil Corporation Limited
  • GVK Power & Infra Limited - India
  • TANGEDCO India
  • Tamil Nadu electricity Board
  • Sakthi Sugars Limited - India
  • Tata Power - India
  • Mjunction Services Limited - India
  • Makarim & Taira - Indonesia
  • Permata Bank - Indonesia
  • Vizag Seaport Private Limited - India
  • Eastern Coal Council - USA
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Trasteel International SA, Italy
  • APGENCO India
  • Neyveli Lignite Corporation Ltd, - India
  • Salva Resources Pvt Ltd - India
  • GNFC Limited - India
  • Wood Mackenzie - Singapore
  • Africa Commodities Group - South Africa
  • SMG Consultants - Indonesia
  • Coal Orbis AG
  • Barasentosa Lestari - Indonesia
  • Mercuria Energy - Indonesia
  • CNBM International Corporation - China
  • Britmindo - Indonesia
  • Thomson Reuters GRC
  • KOWEPO - South Korea
  • SN Aboitiz Power Inc, Philippines
  • DBS Bank - Singapore
  • Karaikal Port Pvt Ltd - India
  • Pendopo Energi Batubara - Indonesia
  • Thiess Contractors Indonesia
  • SUEK AG - Indonesia
  • Ind-Barath Power Infra Limited - India
  • Formosa Plastics Group - Taiwan
  • Energy Development Corp, Philippines
  • Kartika Selabumi Mining - Indonesia
  • Bank of China, Malaysia
  • Maheswari Brothers Coal Limited - India
  • Romanian Commodities Exchange
  • GB Group - China
  • Kepco SPC Power Corporation, Philippines
  • KPCL - India
  • Maybank - Singapore
  • Miang Besar Coal Terminal - Indonesia
  • Enel Italy
  • PetroVietnam
  • India Bulls Power Limited - India
  • Bhatia International Limited - India
  • International Coal Ventures Pvt Ltd - India
  • Coastal Gujarat Power Limited - India
  • Edison Trading Spa - Italy
  • Tanito Harum - Indonesia
  • Global Business Power Corporation, Philippines
  • Electricity Generating Authority of Thailand
  • Idemitsu - Japan
  • Essar Steel Hazira Ltd - India
  • Altura Mining Limited, Indonesia
  • J M Baxi & Co - India
  • WorleyParsons
  • Alfred C Toepfer International GmbH - Germany
  • Indika Energy - Indonesia
  • Gujarat Sidhee Cement - India
  • Maharashtra Electricity Regulatory Commission - India
  • Asia Cement - Taiwan
  • GAC Shipping (India) Pvt Ltd
  • Uttam Galva Steels Limited - India
  • Infraline Energy - India
  • Medco Energi Mining Internasional
  • Antam Resourcindo - Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • Thai Mozambique Logistica
  • OCBC - Singapore
  • Bahari Cakrawala Sebuku - Indonesia
  • Georgia Ports Authority, United States
  • Russian Coal LLC
  • Bukit Asam (Persero) Tbk - Indonesia
  • CCIC - Indonesia
  • Platou - Singapore
  • MS Steel International - UAE
  • Sinarmas Energy and Mining - Indonesia
  • Latin American Coal - Colombia
  • Australian Commodity Traders Exchange
  • ICICI Bank Limited - India
  • SGS (Thailand) Limited
  • Ministry of Finance - Indonesia
  • CESC Limited - India
  • Ministry of Transport, Egypt
  • London Commodity Brokers - England
  • TeaM Sual Corporation - Philippines
  • McConnell Dowell - Australia
  • Kumho Petrochemical, South Korea
  • RBS Sempra - UK
  • Samtan Co., Ltd - South Korea
  • Semirara Mining Corp, Philippines
  • Asian Development Bank
  • The University of Queensland
  • Qatrana Cement - Jordan
  • Jaiprakash Power Ventures ltd
  • Noble Europe Ltd - UK
  • Coal India Limited
  • PLN Batubara - Indonesia
  • Siam City Cement PLC, Thailand
  • Core Mineral Indonesia
  • TGV SRAAC LIMITED, India
  • Metalloyd Limited - United Kingdom
  • Ceylon Electricity Board - Sri Lanka
  • Marubeni Corporation - India
  • Parliament of New Zealand
  • Meenaskhi Energy Private Limited - India
  • Cement Manufacturers Association - India
  • Bayan Resources Tbk. - Indonesia
  • Shenhua Group - China
  • TRAFIGURA, South Korea
  • Kobexindo Tractors - Indoneisa
  • Chamber of Mines of South Africa
  • Aboitiz Power Corporation - Philippines
  • Posco Energy - South Korea
  • Vedanta Resources Plc - India
  • TNPL - India
  • Star Paper Mills Limited - India
  • Xstrata Coal
  • Merrill Lynch Commodities Europe
  • Japan Coal Energy Center
  • Surastha Cement
  • Binh Thuan Hamico - Vietnam
  • HSBC - Hong Kong
  • Pipit Mutiara Jaya. PT, Indonesia
  • Meralco Power Generation, Philippines
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Rudhra Energy - India
  • Bhushan Steel Limited - India
  • SMC Global Power, Philippines
  • Coal and Oil Company - UAE
  • U S Energy Resources
  • Deutsche Bank - India
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Kideco Jaya Agung - Indonesia
  • Malabar Cements Ltd - India
  • Semirara Mining and Power Corporation, Philippines
  • Port Waratah Coal Services - Australia
  • Madhucon Powers Ltd - India
  • Panama Canal Authority
  • Heidelberg Cement - Germany
  • ACC Limited - India
  • Malco - India
  • Commonwealth Bank - Australia
  • Wilmar Investment Holdings
  • Sarangani Energy Corporation, Philippines
  • globalCOAL - UK
  • European Bulk Services B.V. - Netherlands
  • Coeclerici Indonesia