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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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Friday, 28 May 10
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- Port Waratah Coal Services - Australia
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Thiess Contractors Indonesia
- Planning Commission, India
- Orica Mining Services - Indonesia
- White Energy Company Limited
- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Sree Jayajothi Cements Limited - India
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Bukit Baiduri Energy - Indonesia
- Madhucon Powers Ltd - India
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Bhoruka Overseas - Indonesia
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Edison Trading Spa - Italy
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Videocon Industries ltd - India
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- LBH Netherlands Bv - Netherlands
- Petron Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Meenaskhi Energy Private Limited - India
- Indogreen Group - Indonesia
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Mercuria Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Maheswari Brothers Coal Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- Borneo Indobara - Indonesia
- Australian Coal Association
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Marubeni Corporation - India
- Bhushan Steel Limited - India
- Parliament of New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Interocean Group of Companies - India
- Cement Manufacturers Association - India
- Deloitte Consulting - India
- Coalindo Energy - Indonesia
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Vizag Seaport Private Limited - India
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Krishnapatnam Port Company Ltd. - India
- Directorate Of Revenue Intelligence - India
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Ministry of Finance - Indonesia
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- Vedanta Resources Plc - India
- New Zealand Coal & Carbon
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- PNOC Exploration Corporation - Philippines
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- PTC India Limited - India
- Holcim Trading Pte Ltd - Singapore
- GAC Shipping (India) Pvt Ltd
- Sakthi Sugars Limited - India
- McConnell Dowell - Australia
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bulk Trading Sa - Switzerland
- OPG Power Generation Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- ICICI Bank Limited - India
- International Coal Ventures Pvt Ltd - India
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Economic Council, Georgia
- Rashtriya Ispat Nigam Limited - India
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Central Java Power - Indonesia
- Dalmia Cement Bharat India
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- AsiaOL BioFuels Corp., Philippines
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Manunggal Multi Energi - Indonesia
- Oldendorff Carriers - Singapore
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Indian Oil Corporation Limited
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Xindia Steels Limited - India
- European Bulk Services B.V. - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- CNBM International Corporation - China
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Merrill Lynch Commodities Europe
- SN Aboitiz Power Inc, Philippines
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
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