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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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- PetroVietnam Power Coal Import and Supply Company
- Medco Energi Mining Internasional
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- Australian Commodity Traders Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Lanco Infratech Ltd - India
- Neyveli Lignite Corporation Ltd, - India
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- Therma Luzon, Inc, Philippines
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- Global Green Power PLC Corporation, Philippines
- Dalmia Cement Bharat India
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Deloitte Consulting - India
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- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Sidhee Cement - India
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- MS Steel International - UAE
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- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
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- Intertek Mineral Services - Indonesia
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- OPG Power Generation Pvt Ltd - India
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Kideco Jaya Agung - Indonesia
- Karbindo Abesyapradhi - Indoneisa
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- Planning Commission, India
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- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Malabar Cements Ltd - India
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- Formosa Plastics Group - Taiwan
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- Thiess Contractors Indonesia
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- SMG Consultants - Indonesia
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- Australian Coal Association
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- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
- Sojitz Corporation - Japan
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Latin American Coal - Colombia
- Chamber of Mines of South Africa
- International Coal Ventures Pvt Ltd - India
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Marubeni Corporation - India
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- Commonwealth Bank - Australia
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
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- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Georgia Ports Authority, United States
- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- SN Aboitiz Power Inc, Philippines
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- Baramulti Group, Indonesia
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- Kalimantan Lumbung Energi - Indonesia
- Agrawal Coal Company - India
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- Cement Manufacturers Association - India
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- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Sical Logistics Limited - India
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Bhatia International Limited - India
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
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- Heidelberg Cement - Germany
- Interocean Group of Companies - India
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- Gujarat Mineral Development Corp Ltd - India
- Simpson Spence & Young - Indonesia
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- Petron Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Jaiprakash Power Ventures ltd
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