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Wednesday, 06 September 17
LAYTIME - CHARTERERS' RIGHTS & PORT COSTS - NORTH P&I CLUB
KNOWLEDGE TO ELEVATE
In a recent London Arbitration decision (18/17) the Tribunal had to consider whether the owners were entitled to recover additional expenses incurred in complying with charterers’ orders to stop loading operations.
The Facts
The vessel was voyage chartered for a voyage from the USA to Venezuela. Upon arrival at the load port, loading commenced. When charterers became aware of this they ordered the loading to stop. Loading did not then recommence until four days later. Owners claimed from charterers the additional dockage, security and guards’ expenses incurred as a result of the four day interruption to loading.
The Load Port Expenses
In respect of the additional load port expenses, the Tribunal held that the allocation of such expenses would usually fall to owners under the charterparty terms. This was because the charterers were entitled to use the laytime as they wished and so it followed that the associated expenses had to lie where they fell, i.e. with the owners. However, the Tribunal accepted evidence from the owners that an oral agreement had been reached between the owners and the charterers that charterers had agreed to pay the owners’ invoice in full, which included the additional port expenses. It was, therefore, as a result of this additional oral agreement that the Tribunal ordered the charterers to pay the additional port expenses to the owners. Without this oral agreement, which changed the terms of the charterparty, the owners would not have received any compensation for the additional load port expenses incurred as a result of the four day delay.
A Reminder
It is worth reminding owners that charterers do have an absolute right to use the given laytime as they see fit. There is no duty on them to load or discharge faster than the given laytime. Therefore, if a charterer orders the vessel to stop cargo operations when laytime is running, the port expenses incurred during the stop will usually be for owners. This is unless a specific clause (or additional oral or written agreement on this point) can be agreed between the owners and the charterers to the contrary.
Source: North of England P&I Club
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Thursday, 16 June 11
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- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Barasentosa Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Parliament of New Zealand
- Lanco Infratech Ltd - India
- Attock Cement Pakistan Limited
- Siam City Cement - Thailand
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Antam Resourcindo - Indonesia
- Mjunction Services Limited - India
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Holcim Trading Pte Ltd - Singapore
- Jorong Barutama Greston.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Minerals Council of Australia
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Star Paper Mills Limited - India
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
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- Mercuria Energy - Indonesia
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- Essar Steel Hazira Ltd - India
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- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- Madhucon Powers Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Ambuja Cements Ltd - India
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- Banpu Public Company Limited - Thailand
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- White Energy Company Limited
- Gujarat Sidhee Cement - India
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- CNBM International Corporation - China
- Larsen & Toubro Limited - India
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Timah Investasi Mineral - Indoneisa
- Malabar Cements Ltd - India
- Meralco Power Generation, Philippines
- Sojitz Corporation - Japan
- AsiaOL BioFuels Corp., Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Formosa Plastics Group - Taiwan
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- India Bulls Power Limited - India
- The University of Queensland
- Salva Resources Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- Rio Tinto Coal - Australia
- Trasteel International SA, Italy
- Interocean Group of Companies - India
- Toyota Tsusho Corporation, Japan
- Petrochimia International Co. Ltd.- Taiwan
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- Economic Council, Georgia
- Aboitiz Power Corporation - Philippines
- Aditya Birla Group - India
- Commonwealth Bank - Australia
- Eastern Coal Council - USA
- SMG Consultants - Indonesia
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining Corp, Philippines
- VISA Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Indika Energy - Indonesia
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- Samtan Co., Ltd - South Korea
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Binh Thuan Hamico - Vietnam
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Straits Asia Resources Limited - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- The Treasury - Australian Government
- Pendopo Energi Batubara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- GMR Energy Limited - India
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Energy Development Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Manunggal Multi Energi - Indonesia
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Renaissance Capital - South Africa
- South Luzon Thermal Energy Corporation
- Xindia Steels Limited - India
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Therma Luzon, Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- Agrawal Coal Company - India
- Central Electricity Authority - India
- The State Trading Corporation of India Ltd
- Chamber of Mines of South Africa
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Iligan Light & Power Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Videocon Industries ltd - India
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- IEA Clean Coal Centre - UK
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- Dalmia Cement Bharat India
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Coal and Oil Company - UAE
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Indian Energy Exchange, India
- Posco Energy - South Korea
- Thai Mozambique Logistica
- MS Steel International - UAE
- Altura Mining Limited, Indonesia
- Planning Commission, India
- Indogreen Group - Indonesia
- Bharathi Cement Corporation - India
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- Edison Trading Spa - Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- London Commodity Brokers - England
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- Maharashtra Electricity Regulatory Commission - India
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