We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 25 January 16
SHOULD A DEFAULTING PARTY BE ENTITLED TO AN INNOCENT PARTY'S SAVING, FOLLOWING THEIR BREACH OF CONTRACT? - THE NEW FLAMENCO REVISITED
 KNOWLEDGE TO ELEVATE
This case was addressed by the club in our of January 2015, when the High Court decision became available. The background facts to the case are set out in detail in our earlier article, but to summarise briefly, the New Flamenco was time chartered to the charterer from February 2004 to November 2009. In breach of the charterparty terms, the charterer redelivered the ship two years early, in October 2007. Since there was no available charter market for a substitute fixture, the owner took the commercial decision to sell the ship in 2007. The owner subsequently commenced arbitration proceedings, claiming for the net loss of profit that they would have earned during the remaining two years of the charter. Later it became apparent, however, that due to the global financial crisis in late 2008 there was a significant difference in the value of the ship between late 2007 and late 2009 and the owner may well have benefitted from the early redelivery. Indeed, the sale price achieved by the owner was some $16.8m more than the value of the ship in November 2009. The owner’s claim for damages amounted to €7.6m, so if this benefit were to be taken into account then the owner’s claim would disappear in its entirety.
The London tribunal found that the sale was directly caused by the charterer’s early redelivery and, seeing no reason why capital savings should not be taken into account in considering the owner’s losses, the tribunal held that the charterer was entitled to the benefit. Whilst perhaps viewed as unfair by some, it should be remembered that it is normal practice when there is a breach of charter (voyage or time) for the court to take into account any income made on a mitigation voyage, and deduct this from the claim under the (wrongfully terminated) charter. So, why treat capital savings differently from savings in income?
Nevertheless, the High Court (on appeal from the tribunal) reversed this decision. The High Court held on the one hand that there was no need to treat savings in income differently from capital savings; however, on the other, the High Court held that there was no direct causal link between, here, the breach of time charter and the benefits obtained in the commercial sale of the ship. Instead, the High Court held that whilst the early redelivery may have ‘triggered’ the owner’s sale, the capital savings obtained by the owner arose from its own commercial decision to sell the ship. The charterer appealed this decision to the English Court of Appeal.
Court of Appeal decision
The Court of Appeal has, in its recent decision, unanimously overturned the High Court decision. In so doing, the owner’s claim for damages has failed in its entirety. In giving judgment, the Court of Appeal referred to the leading authority on mitigation British Westinghouse[2], confirming the important principle that where a measure taken by a claimant, in mitigation of loss and arising out of the consequences of a defendant’s breach in the ordinary course of business, results in a benefit to the claimant, that benefit is normally to be brought into account in assessing the claimant’s loss unless the measure is wholly independent of the relationship of the claimant and defendant.
Importantly, the Court of Appeal found that there was no available market for this ship upon its early redelivery and, in these circumstances, it was not easy to see why the benefit (if any) an owner obtained from selling the ship in question should not be brought into the calculation of permitted damages, especially when the benefit obtained from fixing the same ship on the spot market would have been taken into account. The absence of the available market was important as, if there had been an available market to re-fix the ship, then the owner’s decision in this case to instead sell the ship could arguably be said to have been independent of the contractual relationship between the parties and, therefore, should not be taken into account.
Conclusion
The overriding principle under English law, governing damages for breach of contract, is the compensatory principle i.e. the law attempts to put the injured party back in the position they would have been in had the contract been properly performed. Therefore, the usual measure of damages available to an owner when a charterer walks away from a contract is the amount of freight or hire which would have been earned, less running expenses, (the profit) less what the ship actually earned during that same period (the voyage(s) made in mitigation). The New Flamenco is not deviating from the compensatory principle. Indeed in this case the owner was compensated for his actual losses following the contract breach, which just happened to be none on this occasion.
However, each case will, as ever, turn on its particular facts which always need to be carefully considered. In the New Flamenco the important factor was the absence of an available market to re-charter the ship when it was redelivered to the owner early.
Source: The Standard Club
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 26 January 16
Q3'16 CFR SOUTH CHINA COAL SWAP DROPPED BELOW $41 A TON
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2016 delivery rose US$ 0.82 (1.94%) per ton month over month.
A commodity swap is ...
Tuesday, 26 January 16
OUTLOOK FOR GLOBAL OIL MARKETS - OPEC SECRETARY GENERAL
Opening address by HE Abdalla S. El-Badri, OPEC Secretary General, at the Chatham House Conference: Middle East and North Africa Energy 2016, Theme ...
Monday, 25 January 16
5700 GAR COAL INDEX CLOSED $ 50.08 PER TON, $0.20 LOWER FROM LAST WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 1.35 percent week over week to averaging $39.39 per ton on this past Friday, ...
Monday, 25 January 16
DRY BULK SHIPPING: A MISERABLE START TO A NEW YEAR, WHERE THE MARKET STRUGGLES TO GROW AT ALL - BIMCO
The global production of steel dropped in 2015 compared to 2014, to a larger extent outside China, as China exported its surplus of steel to destin ...
Sunday, 24 January 16
PANAMAX MARKET WEAKENS ACROSS THE BOARD
COALspot.com: The Baltic Dry Index, which gauges the cost of shipping dry bulk including iron ore, cement, grain, coal and fertiliser, fell ninetee ...
|
|
|
Showing 2591 to 2595 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
- Star Paper Mills Limited - India
- SMG Consultants - Indonesia
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- Savvy Resources Ltd - HongKong
- San Jose City I Power Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cement Manufacturers Association - India
- Uttam Galva Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- PNOC Exploration Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- GVK Power & Infra Limited - India
- Baramulti Group, Indonesia
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- The University of Queensland
- India Bulls Power Limited - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Formosa Plastics Group - Taiwan
- Pendopo Energi Batubara - Indonesia
- Agrawal Coal Company - India
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- Mintek Dendrill Indonesia
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Bulk Trading Sa - Switzerland
- Economic Council, Georgia
- GN Power Mariveles Coal Plant, Philippines
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- MS Steel International - UAE
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- Chamber of Mines of South Africa
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Jindal Steel & Power Ltd - India
- Energy Development Corp, Philippines
- Tamil Nadu electricity Board
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Timah Investasi Mineral - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Medco Energi Mining Internasional
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Romanian Commodities Exchange
- ASAPP Information Group - India
- SMC Global Power, Philippines
- Sree Jayajothi Cements Limited - India
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- Eastern Coal Council - USA
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Bhatia International Limited - India
- New Zealand Coal & Carbon
- Ministry of Finance - Indonesia
- Antam Resourcindo - Indonesia
- Kobexindo Tractors - Indoneisa
- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Mines - Canada
- Directorate Of Revenue Intelligence - India
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Oldendorff Carriers - Singapore
- Jaiprakash Power Ventures ltd
- Interocean Group of Companies - India
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- Independent Power Producers Association of India
- Binh Thuan Hamico - Vietnam
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Petron Corporation, Philippines
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Central Java Power - Indonesia
- Billiton Holdings Pty Ltd - Australia
- PowerSource Philippines DevCo
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Videocon Industries ltd - India
- Latin American Coal - Colombia
- Kideco Jaya Agung - Indonesia
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- CNBM International Corporation - China
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- Rashtriya Ispat Nigam Limited - India
- Bhoruka Overseas - Indonesia
- Georgia Ports Authority, United States
- Deloitte Consulting - India
- Ambuja Cements Ltd - India
- Intertek Mineral Services - Indonesia
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Heidelberg Cement - Germany
|
| |
| |
|
