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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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Saturday, 21 March 20
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- Indo Tambangraya Megah - Indonesia
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- Chamber of Mines of South Africa
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- Ministry of Transport, Egypt
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- Petron Corporation, Philippines
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- Economic Council, Georgia
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- Marubeni Corporation - India
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
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- Minerals Council of Australia
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- Metalloyd Limited - United Kingdom
- White Energy Company Limited
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- Mercator Lines Limited - India
- Vedanta Resources Plc - India
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- GMR Energy Limited - India
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- Mintek Dendrill Indonesia
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- Georgia Ports Authority, United States
- Toyota Tsusho Corporation, Japan
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
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- Parliament of New Zealand
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- Eastern Energy - Thailand
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- India Bulls Power Limited - India
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- Planning Commission, India
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- Bhoruka Overseas - Indonesia
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- Standard Chartered Bank - UAE
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- Globalindo Alam Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Commonwealth Bank - Australia
- Gujarat Mineral Development Corp Ltd - India
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- VISA Power Limited - India
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- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Tamil Nadu electricity Board
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- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Africa Commodities Group - South Africa
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Jorong Barutama Greston.PT - Indonesia
- Merrill Lynch Commodities Europe
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- MS Steel International - UAE
- Attock Cement Pakistan Limited
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Meralco Power Generation, Philippines
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
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- Electricity Authority, New Zealand
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- PetroVietnam Power Coal Import and Supply Company
- Dalmia Cement Bharat India
- Carbofer General Trading SA - India
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- IEA Clean Coal Centre - UK
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- PowerSource Philippines DevCo
- Deloitte Consulting - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Orica Mining Services - Indonesia
- Videocon Industries ltd - India
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- Petrochimia International Co. Ltd.- Taiwan
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Siam City Cement - Thailand
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