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