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