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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
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Friday, 20 May 16
U.S COAL PRODUCTION FOR THE WEEK ENDED 14 MAY TOTALED 11.4 MMST; UP 3.8% W/W
COALspot.com – U.S the world’s second largest coal producer has produced approximately totaled an estimated 11.4 million short tons (mm ...
Thursday, 19 May 16
AUSTRALIAN IRON ORE CARGOES PUSHED UP THE FREIGHT RATES FOR CAPE THIS WEEK - FEARNLEYS
Cape
It has been a big jump in the freight rates for Cape size this week, says Fearnleys in its latest weekly report. All of the Australian iron ...
Thursday, 19 May 16
DISPUTE OVER VAT ON COAL DRAGS ON, CAUSING DOUBLE-BLOW TO MINERS - JP
The dispute over the value-added tax ( VAT ) mechanism between coal miners operating under third-generation contracts and the Finance Ministry&rsqu ...
Wednesday, 18 May 16
DRY BULK OUTLOOK REMAINS GLOOMY SAYS DANISH SHIP FINANCE, AS SHIPPING NEEDS TO RETHINK BUSINESS MODEL - HELLENIC SHIPPING
Our Shipping Market Review – May 2016 is devoted to the fourth industrial revolution. To understand the truly disruptive nature of the fourth ...
Wednesday, 18 May 16
LONG TERM FUNDAMENTALS ARE SLOWLY IMPROVING FOR THE DRY BULK MARKET - INTERMODAL
As we are approaching the end of the first half of the year, there is a number of market participants over at the dry bulk sector that have started ...
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Showing 2426 to 2430 news of total 6871 |
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- Global Green Power PLC Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- GN Power Mariveles Coal Plant, Philippines
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Lanco Infratech Ltd - India
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- Commonwealth Bank - Australia
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- Carbofer General Trading SA - India
- London Commodity Brokers - England
- PTC India Limited - India
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- International Coal Ventures Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
- Mintek Dendrill Indonesia
- Parry Sugars Refinery, India
- LBH Netherlands Bv - Netherlands
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Krishnapatnam Port Company Ltd. - India
- Maheswari Brothers Coal Limited - India
- Meralco Power Generation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Bhushan Steel Limited - India
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Indo Tambangraya Megah - Indonesia
- Antam Resourcindo - Indonesia
- Latin American Coal - Colombia
- Sojitz Corporation - Japan
- Singapore Mercantile Exchange
- Baramulti Group, Indonesia
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Xindia Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Central Electricity Authority - India
- PNOC Exploration Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Ambuja Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Simpson Spence & Young - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Global Business Power Corporation, Philippines
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Kumho Petrochemical, South Korea
- Intertek Mineral Services - Indonesia
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Posco Energy - South Korea
- Semirara Mining and Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- Independent Power Producers Association of India
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Savvy Resources Ltd - HongKong
- The University of Queensland
- SMC Global Power, Philippines
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Aboitiz Power Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Interocean Group of Companies - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Marubeni Corporation - India
- Economic Council, Georgia
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Rio Tinto Coal - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Oldendorff Carriers - Singapore
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Deloitte Consulting - India
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- Chamber of Mines of South Africa
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- The Treasury - Australian Government
- Bukit Makmur.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Electricity Authority, New Zealand
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Africa Commodities Group - South Africa
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- Bank of Tokyo Mitsubishi UFJ Ltd
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- Barasentosa Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Mines - Canada
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Coal and Oil Company - UAE
- Globalindo Alam Lestari - Indonesia
- Heidelberg Cement - Germany
- European Bulk Services B.V. - Netherlands
- White Energy Company Limited
- Thiess Contractors Indonesia
- Mjunction Services Limited - India
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
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