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Thursday, 08 May 14
'TRIAL BY MEDIA, TRIAL BY LAW' - A REPORT FROM TRACK 1 OF BIMCO'S ANNUAL CONFERENCE DUBAI 2014
 KNOWLEDGE TO ELEVATE
Aiming to bring a very different type of event into their annual conference, BIMCO presented ‘Double Jeopardy – ‘Trial by Media, Trial by Law*’, simulating a marine casualty and arbitration to delegates at the Jumeirah Beach Hotel, Dubai. A professional, innovative and creative production not only gave a realistic portrayal of the events following a maritime casualty but enabled the audience to participate with well posed questions by way of interactive voting meters.
Based on a true event, this realistic account of a maritime casualty was narrated by Lindsay East, Consultant, Reed Smith, London. The vessel ‘Idle Star’ having loaded with sugar in Thailand and heading to the discharge port, had grounded on a river bed on the West Coast of California in an area of natural beauty. While there were no human casualties, there was a significant bunker spill and with a fast flowing river the environmental implications to wildlife and the local community were huge.
As the story unfolded, the owner representative, played by John Tsatsas from London and the charterers representative played by Han van Blanken from Rotterdam, portrayed each stage from the initial Captain’s call. With the initial limited information, the chain of events were shown to unfold as the owner and charterer brought in assistance and sought advice from P&I, lawyers, classification society, hull and machinery insurers, local agents and representatives and demonstrated how the process evolved as more information became available, giving an overview of the practicalities involved in the process. The expert advice to the owner and charterer was provided by video clips of real practitioners in conversation with the two stage actors.
The casualty centred on whether the destination port was ‘safe’. It was known to have a low draft and underwater obstructions that shifted and were uncharted. The vessel therefore had to not only be of certain specification when laden but also the conditions of making the final part of the voyage through those water needed to be assessed with the latest information available to see if the port was suitable for discharge. The owners proceeded to complete the voyage and the vessel ran aground so who was liable? The Master for proceeding with the voyage despite concerns or the charterer for the choice of a difficult destination with the cargo in mind?
With neither the owner or charterer accepting liability and indeed blaming each other, this session focussed on two areas; media and how if not handled correctly incidents can become a media and public relations nightmare and legal arbitration, examining the legalities of the charter agreement and how this would be dealt with by the legal system.
The morning session focussed on ‘Trial by Media’ and with neither party having any crisis management or PR in place, the simulated public backlash of the environmentalists, shrimp farmers and the local community as pollution grew, quickly escalated without an appropriate, measured response. Julian Bray, Tradewinds Editor-in-chief portrayed the media, keen for a story, blame and clearly supporting the affected parties who were keen for compensation.
The clear message of the morning session was that handling media during such an incident is a serious matter and can easily spiral out of control. Media will always seek to sensationalise and exploit sensitive areas and it is very easy to say the wrong things however well intentioned. Advice was to be well prepared, seeking professional crisis management to enable you to get every step right and above all, be honest. By knowing the all facts, you can provide just enough factual information and slow the media frenzy down.
The afternoon session ‘Trial by Law’ consisted of a panel of three maritime arbitrators, presided by Jude Benny, from Singapore, Bruce Harris from London and Jack Warfield from New York.
The owner sought indemnity from the charterer and the case was to ascertain whether the port was unsafe, whether the charterer was in breach of the agreement by ordering the ship to go there and whether that caused the loss.
Chirag Karia, a QC from London, counsel for the owner, put forward a strong case after witness testimonies that the owner had expressed concerns to the charterer which has gone unresolved. There had been correspondence regarding the draft of the port and that the waters were uncharted and the charterer had been asked to arrange lightening and/or a harmless agreement to indemnify the owner from any losses should there be a problem. The charterer did not lighten and was confident there would be no issue with the voyage, however did not confirm any harmless agreement which the owner assumed from their conversations. He argued that by sending the vessel to its destination the charterers were sending the vessel to an unsafe port and the owners had been commercially pressured to continue.
Nevil Phillips a barrister from London, counsel for the charterer, argued the defence with regard to whether the port was safe at the time of nomination and that the owners had a responsibility to ensure the vessel was laden appropriately to ensure safe passage. The owners should have reduced the cargo and taken further action to avoid such an incident and the Master was negligent in not doing so, causing the vessel to ground. Ultimately it was the owner’s decision to continue with the voyage with the known risks and any negligence by the Master obliterates any question of safety.
The arbitrators retired to consider their findings, each from the perspective of their own jurisdictions, and the audience were able to vote on their own judgment, finding in favour of the owner. However on returning the arbitrators, giving three separate judgments found in favour of the charterer by two to one on the basis that the grounding was found to be in general down to the Master’s negligence. Jude Benny summing up said “There were sufficient red light warnings and with good seamanship this could have been avoided.”
There was a lively question and answer session to close the session and attendees found the day both enlightening and informative. The new style of interactive session proved popular with attendees and the final vote was to definitely repeat such an event next time.
Source: BIMCO / Hellenic Shipping
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Wednesday, 04 June 14
SKULD: DIVERSIFICATION AND A ROBUST BOTTOM LINE
In February, I was delighted to ring in the new policy year with the Skuld team following a solid renewal round and a strong year. 2013 was, in man ...
Monday, 02 June 14
SUB-BIT FOB INDONESIA COAL SWAPS LOST GROUND THIS WEEK
COALspot.com: Indonesian coal swaps for average Q3’ 2014 lost on day, week and on month according to AsiaClear OTC coal swap's reports re ...
Monday, 02 June 14
SOUTH CHINA COAL SWAP WAS SHOWING A POSITIVE MOVE IN Q4, INSTEAD OF THIS WEEK'S WEAK TREND
COALspot.com: API 8 CFR South China Coal swaps for average Q3 14 deliveries lost 3.39 percent month on month and closed at US$ 72.65 per mt as on F ...
Sunday, 01 June 14
INDO - INDIA SUPRMAX FREIGHT RATES CONTINUED TO DOWN THIS WEEK
COALspot.com: The freight market was soft this past week as all sectors soften particularly Panamax index was lost 129 points or 12.88% week on wee ...
Friday, 30 May 14
CLEAN COAL PROCESSING & CONVERSION ASIA SUMMIT 2014
Clean Coal Processing & Conversion Asia Summit 2014 will be held on Nov 20-21st, 2014 in Jakarta, Indonesia.
With the cooperation of ...
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- GVK Power & Infra Limited - India
- Chamber of Mines of South Africa
- Romanian Commodities Exchange
- Aboitiz Power Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Sical Logistics Limited - India
- Petron Corporation, Philippines
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- Singapore Mercantile Exchange
- Neyveli Lignite Corporation Ltd, - India
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Kobexindo Tractors - Indoneisa
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- London Commodity Brokers - England
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Medco Energi Mining Internasional
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- Sinarmas Energy and Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- Bhatia International Limited - India
- Oldendorff Carriers - Singapore
- OPG Power Generation Pvt Ltd - India
- Ambuja Cements Ltd - India
- Mintek Dendrill Indonesia
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Planning Commission, India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Standard Chartered Bank - UAE
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- Australian Coal Association
- Indian Energy Exchange, India
- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- Miang Besar Coal Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Mercuria Energy - Indonesia
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- SMG Consultants - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Metalloyd Limited - United Kingdom
- Star Paper Mills Limited - India
- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- Antam Resourcindo - Indonesia
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Xindia Steels Limited - India
- Therma Luzon, Inc, Philippines
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Coal and Oil Company - UAE
- Semirara Mining Corp, Philippines
- Parliament of New Zealand
- Posco Energy - South Korea
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Timah Investasi Mineral - Indoneisa
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- VISA Power Limited - India
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- GAC Shipping (India) Pvt Ltd
- Kepco SPC Power Corporation, Philippines
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Rashtriya Ispat Nigam Limited - India
- Globalindo Alam Lestari - Indonesia
- Trasteel International SA, Italy
- Jindal Steel & Power Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Bharathi Cement Corporation - India
- Sarangani Energy Corporation, Philippines
- GMR Energy Limited - India
- Madhucon Powers Ltd - India
- Dalmia Cement Bharat India
- Indonesian Coal Mining Association
- Meralco Power Generation, Philippines
- India Bulls Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Jaiprakash Power Ventures ltd
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Australian Commodity Traders Exchange
- Riau Bara Harum - Indonesia
- Altura Mining Limited, Indonesia
- Wilmar Investment Holdings
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- PNOC Exploration Corporation - Philippines
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- The University of Queensland
- Merrill Lynch Commodities Europe
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Gujarat Electricity Regulatory Commission - India
- Manunggal Multi Energi - Indonesia
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- ICICI Bank Limited - India
- Sree Jayajothi Cements Limited - India
- Orica Mining Services - Indonesia
- Agrawal Coal Company - India
- Jorong Barutama Greston.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Transport, Egypt
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Siam City Cement PLC, Thailand
- European Bulk Services B.V. - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Kaltim Prima Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Electricity Generating Authority of Thailand
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