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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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- Bulk Trading Sa - Switzerland
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- Price Waterhouse Coopers - Russia
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- LBH Netherlands Bv - Netherlands
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Meenaskhi Energy Private Limited - India
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
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- Wood Mackenzie - Singapore
- Siam City Cement - Thailand
- Minerals Council of Australia
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- Orica Mining Services - Indonesia
- VISA Power Limited - India
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- Semirara Mining and Power Corporation, Philippines
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- Maharashtra Electricity Regulatory Commission - India
- Deloitte Consulting - India
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- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Chamber of Mines of South Africa
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- Simpson Spence & Young - Indonesia
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- Petrochimia International Co. Ltd.- Taiwan
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- Vedanta Resources Plc - India
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- Kapuas Tunggal Persada - Indonesia
- Madhucon Powers Ltd - India
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- Videocon Industries ltd - India
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- Directorate General of MIneral and Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- Ministry of Transport, Egypt
- Oldendorff Carriers - Singapore
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- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
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- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Georgia Ports Authority, United States
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Australian Commodity Traders Exchange
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- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Jaiprakash Power Ventures ltd
- Goldman Sachs - Singapore
- Tata Chemicals Ltd - India
- San Jose City I Power Corp, Philippines
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- Tamil Nadu electricity Board
- Sindya Power Generating Company Private Ltd
- Kepco SPC Power Corporation, Philippines
- Interocean Group of Companies - India
- Renaissance Capital - South Africa
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- Merrill Lynch Commodities Europe
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- CNBM International Corporation - China
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- Sarangani Energy Corporation, Philippines
- Mintek Dendrill Indonesia
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
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- Central Electricity Authority - India
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- Eastern Coal Council - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Edison Trading Spa - Italy
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
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- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Salva Resources Pvt Ltd - India
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- Ministry of Mines - Canada
- Indian Energy Exchange, India
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- Bank of Tokyo Mitsubishi UFJ Ltd
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- The State Trading Corporation of India Ltd
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- Power Finance Corporation Ltd., India
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- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Jindal Steel & Power Ltd - India
- GVK Power & Infra Limited - India
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- Romanian Commodities Exchange
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- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Thai Mozambique Logistica
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- Indogreen Group - Indonesia
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- Economic Council, Georgia
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- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
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- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
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- Sakthi Sugars Limited - India
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- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- Sree Jayajothi Cements Limited - India
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- McConnell Dowell - Australia
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- Sojitz Corporation - Japan
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