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