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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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Monday, 04 October 10
2 BLN TONS OF COAL RESERVES DISCOVERED IN SOUTHERN PAKISTAN - XINHUA / HELLENIC SHIPPING
Xinhua and Hellenic Shipping reporte dhtat, the discovery of at least two billion tons of usable coal reserves has been confirmed in one of the ...
Sunday, 03 October 10
THE BDI WAS JUST INCREASED BY 8 POINTS AND CLOSED AT 2452 POINTS LAST FRIDAY - VISTAAR
COALspot.com: The BDI was almost at same levels and just increased by 8 points and closed at 2452 points , however the cape index was up by al ...
Sunday, 03 October 10
NALCO TO FINALIZE INDONESIA COAL DEAL BY JANUARY - HINDUSTAN TIMES
HindustanTimes reported that, state-owned National Aluminium Company (NALCO) will finalise a deal with a coal source in Indonesia for its $4 billion ...
Sunday, 03 October 10
INDONESIA WILL BECOME A NET IMPORTER OF ENERGY IN 2030 - BPPT
Jakarta Updates reported that,Indonesian Agency for the Assessment and Application of Technology (BPPT) predicted that the energy situation in Indon ...
Saturday, 02 October 10
FOUR INDONESIAN COAL FIRMS KEEN TO TIE UP WITH NALCO - SIFY
Sify reported that, Four Indonesian coal companies have shown interest to tie up with public sector National Aluminium Company (Nalco) for its 4 bil ...
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- White Energy Company Limited
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- Bhatia International Limited - India
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- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- VISA Power Limited - India
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- India Bulls Power Limited - India
- Essar Steel Hazira Ltd - India
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- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
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- Eastern Coal Council - USA
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- Asmin Koalindo Tuhup - Indonesia
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- European Bulk Services B.V. - Netherlands
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- International Coal Ventures Pvt Ltd - India
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- PTC India Limited - India
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- Energy Development Corp, Philippines
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- Sojitz Corporation - Japan
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- Economic Council, Georgia
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- Semirara Mining Corp, Philippines
- SN Aboitiz Power Inc, Philippines
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- Binh Thuan Hamico - Vietnam
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- Thiess Contractors Indonesia
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- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
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- Cement Manufacturers Association - India
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- AsiaOL BioFuels Corp., Philippines
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Kideco Jaya Agung - Indonesia
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- Romanian Commodities Exchange
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- Ministry of Transport, Egypt
- Ambuja Cements Ltd - India
- Metalloyd Limited - United Kingdom
- The University of Queensland
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- Tata Chemicals Ltd - India
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Savvy Resources Ltd - HongKong
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
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- MS Steel International - UAE
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- GVK Power & Infra Limited - India
- Madhucon Powers Ltd - India
- Minerals Council of Australia
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- Parliament of New Zealand
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- GAC Shipping (India) Pvt Ltd
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- Central Electricity Authority - India
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- Coal and Oil Company - UAE
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- Kohat Cement Company Ltd. - Pakistan
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- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
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- Gujarat Mineral Development Corp Ltd - India
- Samtan Co., Ltd - South Korea
- ICICI Bank Limited - India
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
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- Chamber of Mines of South Africa
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