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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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The iron ore spot market is growing at a ...
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- Parry Sugars Refinery, India
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- Parliament of New Zealand
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- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- Price Waterhouse Coopers - Russia
- Oldendorff Carriers - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
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- Power Finance Corporation Ltd., India
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- Edison Trading Spa - Italy
- Energy Development Corp, Philippines
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- Jaiprakash Power Ventures ltd
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- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
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- Minerals Council of Australia
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- Global Business Power Corporation, Philippines
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- Renaissance Capital - South Africa
- Formosa Plastics Group - Taiwan
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- Eastern Energy - Thailand
- Indian Oil Corporation Limited
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- Samtan Co., Ltd - South Korea
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
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- Semirara Mining and Power Corporation, Philippines
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- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
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- Georgia Ports Authority, United States
- Aditya Birla Group - India
- McConnell Dowell - Australia
- Jorong Barutama Greston.PT - Indonesia
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- Rio Tinto Coal - Australia
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Africa Commodities Group - South Africa
- London Commodity Brokers - England
- Mjunction Services Limited - India
- Miang Besar Coal Terminal - Indonesia
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Thiess Contractors Indonesia
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
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- Anglo American - United Kingdom
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Chamber of Mines of South Africa
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- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- The State Trading Corporation of India Ltd
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
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- Heidelberg Cement - Germany
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kohat Cement Company Ltd. - Pakistan
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- Directorate Of Revenue Intelligence - India
- Larsen & Toubro Limited - India
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- Petron Corporation, Philippines
- Australian Coal Association
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- SMC Global Power, Philippines
- Rashtriya Ispat Nigam Limited - India
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- Cement Manufacturers Association - India
- Gujarat Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- Bhatia International Limited - India
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Bukit Makmur.PT - Indonesia
- Bharathi Cement Corporation - India
- Ministry of Finance - Indonesia
- The Treasury - Australian Government
- Siam City Cement - Thailand
- Timah Investasi Mineral - Indoneisa
- Indonesian Coal Mining Association
- Mercator Lines Limited - India
- Latin American Coal - Colombia
- Cigading International Bulk Terminal - Indonesia
- Sical Logistics Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maheswari Brothers Coal Limited - India
- TeaM Sual Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Bulk Trading Sa - Switzerland
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- Deloitte Consulting - India
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- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
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- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- European Bulk Services B.V. - Netherlands
- Salva Resources Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
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- Karbindo Abesyapradhi - Indoneisa
- Intertek Mineral Services - Indonesia
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- Bayan Resources Tbk. - Indonesia
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- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
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- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
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- Therma Luzon, Inc, Philippines
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