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