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