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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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Monday, 18 April 16
INDONESIAN 5000 GAR COAL INDEX DECLINE 1.43 PERCENT WEEK OVER WEEK - CS (I) COAL INDEX
COALspot.com: Average 5000 GAR coal index of Indonesian origin fell 1.43 percent week over week to averaging $38.65 per ton on this past Friday, ac ...
Monday, 18 April 16
SOUTH KOREA STATE-OWNED UTILITY KOMIPO INVITES COAL BIDS FOR BORYEONG POWER PLANT
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a new tender for 70,000 Metric Tons of 4,600 kcal/kg NAR coal for ...
Monday, 18 April 16
SOUTH AFRICA RB1 COAL HAS LOST GROUND IN INDIA; RB2 MAY LOSE GRIP IF THE PRICE CROSSES US$ 50 A TON - TRADERS
COALspot.com: Indian coal consumers preferred to buy South Africa RB2 coal instead of RB1 coal recent months due to RB2's low CFR price level. ...
Monday, 18 April 16
CAPESIZE INDEX ROSE 44.66 PER CENT WEEK OVER WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 15 April 16
PANAMAX MARKET CONTINUES TO FIRM - FEARNLEYS
Cape
It has been a positive freight market for the past few weeks, however, this week the market is taking a small breather, says Fearnleys in it ...
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Showing 2471 to 2475 news of total 6871 |
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- CNBM International Corporation - China
- Indian Oil Corporation Limited
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Bukit Baiduri Energy - Indonesia
- Edison Trading Spa - Italy
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
- Borneo Indobara - Indonesia
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Therma Luzon, Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Electricity Authority, New Zealand
- SMG Consultants - Indonesia
- White Energy Company Limited
- Larsen & Toubro Limited - India
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Ambuja Cements Ltd - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Latin American Coal - Colombia
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- Rio Tinto Coal - Australia
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Heidelberg Cement - Germany
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- PowerSource Philippines DevCo
- Kalimantan Lumbung Energi - Indonesia
- Anglo American - United Kingdom
- Georgia Ports Authority, United States
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- Vizag Seaport Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Thai Mozambique Logistica
- Barasentosa Lestari - Indonesia
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Carbofer General Trading SA - India
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- Ministry of Mines - Canada
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Sical Logistics Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Australian Commodity Traders Exchange
- Kaltim Prima Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- ASAPP Information Group - India
- Kepco SPC Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Pendopo Energi Batubara - Indonesia
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Chamber of Mines of South Africa
- Renaissance Capital - South Africa
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petron Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Semirara Mining Corp, Philippines
- Baramulti Group, Indonesia
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- OPG Power Generation Pvt Ltd - India
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- SN Aboitiz Power Inc, Philippines
- Ministry of Transport, Egypt
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Commonwealth Bank - Australia
- Central Java Power - Indonesia
- Dalmia Cement Bharat India
- Siam City Cement - Thailand
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Mjunction Services Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Maheswari Brothers Coal Limited - India
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- Wilmar Investment Holdings
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Grasim Industreis Ltd - India
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Marubeni Corporation - India
- Port Waratah Coal Services - Australia
- Orica Australia Pty. Ltd.
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Kapuas Tunggal Persada - Indonesia
- Kobexindo Tractors - Indoneisa
- Bulk Trading Sa - Switzerland
- Indika Energy - Indonesia
- Bhushan Steel Limited - India
- AsiaOL BioFuels Corp., Philippines
- Posco Energy - South Korea
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Altura Mining Limited, Indonesia
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Straits Asia Resources Limited - Singapore
- The University of Queensland
- MS Steel International - UAE
- Australian Coal Association
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