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