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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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- Kaltim Prima Coal - Indonesia
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
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- Coastal Gujarat Power Limited - India
- Vizag Seaport Private Limited - India
- Ministry of Transport, Egypt
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- Alfred C Toepfer International GmbH - Germany
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- Edison Trading Spa - Italy
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- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
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- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
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- SMC Global Power, Philippines
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- Thai Mozambique Logistica
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Parliament of New Zealand
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- Economic Council, Georgia
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- Posco Energy - South Korea
- Samtan Co., Ltd - South Korea
- Marubeni Corporation - India
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- Singapore Mercantile Exchange
- White Energy Company Limited
- Chamber of Mines of South Africa
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- South Luzon Thermal Energy Corporation
- Thiess Contractors Indonesia
- Electricity Authority, New Zealand
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- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Indika Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Eastern Coal Council - USA
- Ministry of Finance - Indonesia
- OPG Power Generation Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
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- Independent Power Producers Association of India
- Star Paper Mills Limited - India
- PTC India Limited - India
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- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
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- Aboitiz Power Corporation - Philippines
- Eastern Energy - Thailand
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- Indian Energy Exchange, India
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
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- Australian Commodity Traders Exchange
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- Minerals Council of Australia
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- Petron Corporation, Philippines
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Business Power Corporation, Philippines
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- Orica Mining Services - Indonesia
- Trasteel International SA, Italy
- Australian Coal Association
- The Treasury - Australian Government
- Goldman Sachs - Singapore
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- Mercator Lines Limited - India
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- LBH Netherlands Bv - Netherlands
- Salva Resources Pvt Ltd - India
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Essar Steel Hazira Ltd - India
- Kobexindo Tractors - Indoneisa
- Coal and Oil Company - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Deloitte Consulting - India
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- McConnell Dowell - Australia
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- Malabar Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Oldendorff Carriers - Singapore
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- Planning Commission, India
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- VISA Power Limited - India
- Bangladesh Power Developement Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
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- Banpu Public Company Limited - Thailand
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- PNOC Exploration Corporation - Philippines
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- Karbindo Abesyapradhi - Indoneisa
- Mintek Dendrill Indonesia
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Mercuria Energy - Indonesia
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