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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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- Wilmar Investment Holdings
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- Thai Mozambique Logistica
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- Pipit Mutiara Jaya. PT, Indonesia
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- Africa Commodities Group - South Africa
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- Electricity Authority, New Zealand
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- Madhucon Powers Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- International Coal Ventures Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
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- Alfred C Toepfer International GmbH - Germany
- Kohat Cement Company Ltd. - Pakistan
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- Eastern Energy - Thailand
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- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
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- South Luzon Thermal Energy Corporation
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- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Kideco Jaya Agung - Indonesia
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- The University of Queensland
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- Wood Mackenzie - Singapore
- PowerSource Philippines DevCo
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- Indonesian Coal Mining Association
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- Simpson Spence & Young - Indonesia
- Deloitte Consulting - India
- Posco Energy - South Korea
- Cement Manufacturers Association - India
- Sinarmas Energy and Mining - Indonesia
- Manunggal Multi Energi - Indonesia
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- Sarangani Energy Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Sindya Power Generating Company Private Ltd
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- Indika Energy - Indonesia
- New Zealand Coal & Carbon
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- Ministry of Mines - Canada
- Bangladesh Power Developement Board
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- Jorong Barutama Greston.PT - Indonesia
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- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
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- SMC Global Power, Philippines
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
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- Ministry of Transport, Egypt
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- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
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- Central Electricity Authority - India
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- White Energy Company Limited
- Parry Sugars Refinery, India
- IEA Clean Coal Centre - UK
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- Australian Coal Association
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- Meralco Power Generation, Philippines
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- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
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- PNOC Exploration Corporation - Philippines
- Electricity Generating Authority of Thailand
- Savvy Resources Ltd - HongKong
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Planning Commission, India
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Singapore Mercantile Exchange
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- Independent Power Producers Association of India
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- The State Trading Corporation of India Ltd
- Samtan Co., Ltd - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- ASAPP Information Group - India
- Romanian Commodities Exchange
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- Barasentosa Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
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- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
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- Thiess Contractors Indonesia
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- Bhoruka Overseas - Indonesia
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- Australian Commodity Traders Exchange
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- San Jose City I Power Corp, Philippines
- Jindal Steel & Power Ltd - India
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- The Treasury - Australian Government
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- Banpu Public Company Limited - Thailand
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- Global Coal Blending Company Limited - Australia
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- Jaiprakash Power Ventures ltd
- Formosa Plastics Group - Taiwan
- Videocon Industries ltd - India
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- Port Waratah Coal Services - Australia
- Indian Energy Exchange, India
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
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