We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 04 April 16
THE LOADING, AND SUBSEQUENT DISCHARGE, OF UNSAFE NICKEL ORE - ALL TIME TO 'COUNT' - THE STANDARD CLUB
 KNOWLEDGE TO ELEVATE
In a recent, published, London arbitration award the English tribunal has held that all time lost as a result of loading, and then discharging, a confiscated (unsafe) cargo will be for the charterer’s account.
Background facts
Under a contract of affreightment (CoA), the owner was required to carry eight shipments of nickel ore. The ship promptly arrived at the nominated load, with loading commencing the very next day. Loading stopped two weeks later, however, and the local navy issued a confiscation order, resulting in the ship being compounded in a nearby naval base. The confiscation order was issued due to the cargo being mined outside the parameters of the locally granted permits. Only three months later was the ship released to discharge the cargo already on board the ship, which took two more months to complete.
When the ship was released the charterer emailed the owner requiring it to organise the remaining discharge operation. In addition, the charterer advised that it would not provide any cargo for the next shipment. In response, the owner advised the charterer that it had wrongfully repudiated the CoA and claimed, through London arbitration, demurrage for the entire duration of delay.
The Tribunal’s decision
The arbitration tribunal would only consider the claim for demurrage, not the claim for possible wrongful termination.
The charterer’s primary defense to the demurrage claim was based upon the following CoA clause (our emphasis):
‘In case any acts of God, riots, civil commotions, fire or any other causes comprehend in the Force Majeure terms which may delay or prevent to provide the cargo at the port of loading and load/discharge of the cargo, such time lost is not to count as laytime as neither Charterers nor Shipper nor Suppliers nor Receivers shall be liable for any loss of demurrage, unless vessel already on demurrage. Once on demurrage always on demurrage.’
The tribunal found that the above clause did not aid the charterer in its defence. It was held that the confiscation of the ship by the local navy did not fall within the boundaries of ‘any acts of God, riots, civil commotions, fire or any other causes comprehend in force majeure terms’.
Also, the tribunal found that because the subject cargo had been illegally mined, the charterer had failed to meet its primary contractual obligation under the CoA to provide a safe cargo, which could not be ‘excused’ by other contractual defences.
Finally, as the intervention by the navy was after the ship fell on demurrage, it was found that as per the above wording, ‘once on demurrage always on demurrage’, the charterer remained liable for the entire period of detention and delay.
On the other hand, the tribunal refused to accept that the charterer should not be allowed load time. This was on the basis that cargo had been partially loaded. The charterer was therefore allowed laytime, on a pro rata basis, irrespective of it being considered an unsafe cargo.
Concluding remarks
Following the above decision, members acting in a charterer’s capacity should take all precautions to ensure that the cargo to be loaded on board a ship is safe, legal and that all applicable documentation is in order to best prevent similar situations from arising in the future. It should also be noted that if the subject charter includes the phrase ‘once on demurrage, always on demurrage’ the charterer will remain liable for all time used until the load or discharge operation is completed. Charterer members should, therefore, be proactive and continue to use their best efforts to minimize any time lost.
This article intends to provide general guidance on the issues arising as a matter of English law. It is not intended to provide legal advice in relation to any specific query. Members requiring further information on this topic should direct their enquiries to either their usual contact at the club, or to the authors of this article.
Defence cover is, by its very nature, discretionary in that the club must be satisfied as to the merits and quantum of the claim in question and the likelihood of achieving a successful outcome, if it is to lend support.
Source: The Standard Club
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 03 August 16
SHIP TRADING AND ORDERING CLOSE TO A STALEMATE AS SUMMER LULL KICKS IN
With newbuilding activity already at a near standstill since the start of the year, most of 2016’s trading activity in shipping was evident i ...
Tuesday, 02 August 16
INDONESIAN CS COAL INDICES STAY POSITIVE
COALspot.com: Average 5000 GAR coal index of Indonesian origin rose 0.71% week over week to averaging $41.12 per ton this past week, shows CS (i) C ...
Monday, 01 August 16
4200 GAR INDONESIAN COAL PRICE MAY TOUCH $ 32/33 A TON LEVELS SOON
COALspot.com: Indonesian coal prices are likely surge further in 2016 as the recent price movement in Indonesian coal markets suggests that the mar ...
Monday, 01 August 16
BALTIC INDEX ENDED NEGATIVE NOTE THIS PAST WEEK ON WEAKER RATES ACROSS ALL LARGE VESSEL SEGMENTS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities slide slightly as Cape, Panamax and Supramax segments end ...
Friday, 29 July 16
U.S. COAL OUTPUT SLIPS SLIGHTLY WEEK OVER WEEK
COALspot.com – U.S., the world’s second largest coal producers has produced approximately totalled an estimated 15 million short tons ( ...
|
|
|
Showing 2341 to 2345 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- South Luzon Thermal Energy Corporation
- Medco Energi Mining Internasional
- CNBM International Corporation - China
- Aditya Birla Group - India
- MS Steel International - UAE
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Economic Council, Georgia
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indonesian Coal Mining Association
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- Latin American Coal - Colombia
- ICICI Bank Limited - India
- Krishnapatnam Port Company Ltd. - India
- Grasim Industreis Ltd - India
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Vedanta Resources Plc - India
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Energy Development Corp, Philippines
- Power Finance Corporation Ltd., India
- SMC Global Power, Philippines
- Leighton Contractors Pty Ltd - Australia
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Banpu Public Company Limited - Thailand
- Thai Mozambique Logistica
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Orica Mining Services - Indonesia
- Edison Trading Spa - Italy
- Mintek Dendrill Indonesia
- Romanian Commodities Exchange
- Marubeni Corporation - India
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Cigading International Bulk Terminal - Indonesia
- Georgia Ports Authority, United States
- Cement Manufacturers Association - India
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- San Jose City I Power Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- Madhucon Powers Ltd - India
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- Semirara Mining Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Deloitte Consulting - India
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- Attock Cement Pakistan Limited
- Ceylon Electricity Board - Sri Lanka
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- The Treasury - Australian Government
- Gujarat Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Global Coal Blending Company Limited - Australia
- International Coal Ventures Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Formosa Plastics Group - Taiwan
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Goldman Sachs - Singapore
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Singapore Mercantile Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Asmin Koalindo Tuhup - Indonesia
- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- OPG Power Generation Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Savvy Resources Ltd - HongKong
- Neyveli Lignite Corporation Ltd, - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tamil Nadu electricity Board
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Makarim & Taira - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Agrawal Coal Company - India
- Timah Investasi Mineral - Indoneisa
- Directorate Of Revenue Intelligence - India
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
- Kepco SPC Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Jindal Steel & Power Ltd - India
- TeaM Sual Corporation - Philippines
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Price Waterhouse Coopers - Russia
- Iligan Light & Power Inc, Philippines
- Malabar Cements Ltd - India
- Salva Resources Pvt Ltd - India
- SMG Consultants - Indonesia
- Coastal Gujarat Power Limited - India
- Global Business Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- Central Electricity Authority - India
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Bhatia International Limited - India
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Indo Tambangraya Megah - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Africa Commodities Group - South Africa
- Karaikal Port Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
|
| |
| |
|
