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