We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 10 December 15
LIENING CARGO - WHICH LIEN CLAUSE APPLIES TO THE BILL OF LADING? : WIKBORG REIN | HELLENIC SHIPPING NEWS
 KNOWLEDGE TO ELEVATE
In a dry bulk market where a charterer is not paying freight or hire, its counterparty is often left to consider whether it can lien the cargo on board the chartered vessel to obtain payment voluntarily, or by court sale if necessary.
This often involves looking at a Congenbill bill of lading and establishing whether a charterparty lien clause applies via Clause (1) on the reverse, which incorporates all “terms and conditions, liberties and exceptions of the Charterparty, dated as overleaf”. Problems arise when:
- there is no date overleaf and there are a number of charterparties in a chain, any of which could apply; or
- there are a number of charterparties in the chain with the same date as overleaf.
The question then becomes which charterparty lien clause to apply and to what debt to apply it.
Charterparty liens under English law
As a matter of English law, the absence of a date overleaf on the face of the Congenbill does not prevent a charterparty from being incorporated. Where there is only one charter, direct with the head owner, there is no doubt as to its application. However, the situation becomes complicated if there is:
- a head time charter;
- a sub-time charter;
- a head voyage charter; and
- a sub-voyage charter.
Which of these four charters is to be incorporated? An owner will normally assert that the head charter should be incorporated (ie, because it has signed it). Likewise, a receiver under the bill will usually argue for the sub-voyage charter – again, because this was the contract that it knew of when arranging the shipment. However, English law points in a different direction.
The starting point is that under a time charter, the time charterer has power over the issue of the bill of lading, provided that this reflects the mate’s receipts. The time charterer also has the authority to give orders to the master and direct the vessel in its commercial business. As such, the charterparty of greatest influence on the voyage is likely to have a time charterer as one of the parties.
However, insofar as the Congenbill concerns only a single voyage, the charterparty likely to be most relevant will be a voyage charter. As such, English law hesitantly arrives at the position that the applicable charterparty is that in which a time charterer is acting as disponent owner, with the head voyage charterer as its counterparty. In other words, in the above scenario, the terms of the head voyage charter between the sub-time charterer and the head voyage charterer will be incorporated into the Congenbill.
This raises a further question: if the bill of lading is an owner’s bill made between the head owner and receiver, how can a lien in the head voyage charter be applied to that bill when it refers to freight due to the sub-time charterer, which is not a party to the bill? Does the fact that the freight subject to the lien will not be paid to the head owner bar exercise of the lien? English law suggests not. Provided that the freight is still due to be paid by the head voyage charterer to the sub-time charterer, the sub-time charterer can direct the head time charterer to direct the head owner to exercise the lien on its behalf (against its indemnity for the costs, expenses and potential liabilities involved). The head owner acts as a form of trustee in such a lien and accounts to the time charterer for any payments received as a consequence of the lien.
Persuading the head owner to take such steps can be difficult, particularly if it has been paid hire in full and has no personal interest in collecting the freight for the time charterer.
However, if the head owner does not exercise a formal lien, it might face an order from the time charterer to stop the vessel in an attempt to obtain payment. The head owner might argue that this puts it in breach of the Congenbill as against the receiver, to which the time charterer might reply that it has the right to give orders (including the right to order the head owner on how to exercise rights under the bill of lading), so if the head owner refuses, it is in breach. The respective rights and wrongs of such a showdown would be complex; but faced with this situation, a head owner may prefer to exercise the lien itself as trustee to protect itself from claims under the bill of lading from the receiver – particularly if it obtains an indemnity from the time charterer in the process.
Comment
As in all charterparty matters, generalisations are interesting, but the individual circumstances of each dispute must be carefully checked to see whether they apply. Bearing that in mind, when it comes to liening cargo under a Congenbill, it seems that English law will look first to the head voyage charterparty as the source of relevant terms to be incorporated into the Congenbill (unless another charter is expressly identified), and this is likely to lead to a less-than-obvious outcome.
Source: Wikborg Rein | Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 14 November 23
CHINA'S BELT AND ROAD INITIATIVE TURNS AWAY FROM COAL - WOOD MACKENZIE
Ambitious, contentious and big spending, China’s Belt and Road Initiative (BRI) is 10 years old. In that time, China has splashed more than U ...
Friday, 10 November 23
THE COMMODITIES FEED: OIL UNDER PRESSURE - ING
Energy – Brent plummets
The oil market came under significant pressure yesterday. ICE Brent settled 4.19% lower on the day and ...
Friday, 10 November 23
COAL USE AT U.S. POWER PLANTS CONTINUES DOWNWARD SPIRAL; FULL IMPACT ON MINES TO BE FELT IN 2024 - IEEFA
This year, the use of coal by the U.S.’s power producers has been so anemic that the fuel has not achieved a 20% market share in any month so ...
Friday, 10 November 23
INDIA: NATIONAL COAL INDEX RISES 3.83 POINTS IN SEPTEMBER AMID HIGHER DEMAND - LIVEMINT
The National Coal Index (NCI) rose 3.83 points to 143.91 in September amid growing demand for coal.
The union coal ministry on Tuesd ...
Thursday, 09 November 23
WE'RE PRODUCING TOO MUCH COAL, OIL AND GAS, REPORT SAYS - WSJ
World leaders pledged in 2015 to reduce emissions in a combined effort to limit climate change.
Now they are stepping up production ...
|
|
|
Showing 76 to 80 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- Bangladesh Power Developement Board
- Makarim & Taira - Indonesia
- Kartika Selabumi Mining - Indonesia
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Videocon Industries ltd - India
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Xindia Steels Limited - India
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- SMC Global Power, Philippines
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- Wilmar Investment Holdings
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Electricity Authority, New Zealand
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- Savvy Resources Ltd - HongKong
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement - Thailand
- Jorong Barutama Greston.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bharathi Cement Corporation - India
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Independent Power Producers Association of India
- Antam Resourcindo - Indonesia
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Singapore Mercantile Exchange
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Orica Australia Pty. Ltd.
- Directorate General of MIneral and Coal - Indonesia
- Dalmia Cement Bharat India
- Gujarat Sidhee Cement - India
- Gujarat Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Bhatia International Limited - India
- Parry Sugars Refinery, India
- India Bulls Power Limited - India
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- Intertek Mineral Services - Indonesia
- Interocean Group of Companies - India
- Port Waratah Coal Services - Australia
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Salva Resources Pvt Ltd - India
- New Zealand Coal & Carbon
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Indian Oil Corporation Limited
- PNOC Exploration Corporation - Philippines
- Tata Chemicals Ltd - India
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ambuja Cements Ltd - India
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Eastern Coal Council - USA
- Sree Jayajothi Cements Limited - India
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Planning Commission, India
- Vizag Seaport Private Limited - India
- IEA Clean Coal Centre - UK
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Latin American Coal - Colombia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- The Treasury - Australian Government
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Larsen & Toubro Limited - India
- Australian Coal Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- MS Steel International - UAE
- Economic Council, Georgia
- Minerals Council of Australia
- Baramulti Group, Indonesia
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Aboitiz Power Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Central Electricity Authority - India
- Romanian Commodities Exchange
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- GMR Energy Limited - India
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- The University of Queensland
- Merrill Lynch Commodities Europe
|
| |
| |
|
