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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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Sunday, 01 January 12
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Thursday, 29 December 11
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- White Energy Company Limited
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- Tata Chemicals Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Goldman Sachs - Singapore
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- Semirara Mining Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
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- Leighton Contractors Pty Ltd - Australia
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
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- Thiess Contractors Indonesia
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- CIMB Investment Bank - Malaysia
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- Indogreen Group - Indonesia
- Australian Coal Association
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- London Commodity Brokers - England
- Parliament of New Zealand
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- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Baramulti Group, Indonesia
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- Ministry of Mines - Canada
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- Edison Trading Spa - Italy
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- Global Coal Blending Company Limited - Australia
- Economic Council, Georgia
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- Sinarmas Energy and Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kumho Petrochemical, South Korea
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- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
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- International Coal Ventures Pvt Ltd - India
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- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Dalmia Cement Bharat India
- Pendopo Energi Batubara - Indonesia
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- Wood Mackenzie - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
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- Formosa Plastics Group - Taiwan
- Indonesian Coal Mining Association
- PetroVietnam Power Coal Import and Supply Company
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Kepco SPC Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- The University of Queensland
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- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- Marubeni Corporation - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Krishnapatnam Port Company Ltd. - India
- Sakthi Sugars Limited - India
- Electricity Authority, New Zealand
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Timah Investasi Mineral - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Sarangani Energy Corporation, Philippines
- Minerals Council of Australia
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- Bukit Makmur.PT - Indonesia
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- Deloitte Consulting - India
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Georgia Ports Authority, United States
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- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Aditya Birla Group - India
- ICICI Bank Limited - India
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- Mintek Dendrill Indonesia
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- Planning Commission, India
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- TNB Fuel Sdn Bhd - Malaysia
- PowerSource Philippines DevCo
- Samtan Co., Ltd - South Korea
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Generating Authority of Thailand
- Ministry of Transport, Egypt
- Cement Manufacturers Association - India
- Jaiprakash Power Ventures ltd
- Rio Tinto Coal - Australia
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Mercuria Energy - Indonesia
- Posco Energy - South Korea
- Bhatia International Limited - India
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Karaikal Port Pvt Ltd - India
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Straits Asia Resources Limited - Singapore
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Latin American Coal - Colombia
- Globalindo Alam Lestari - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Energy Link Ltd, New Zealand
- McConnell Dowell - Australia
- Orica Mining Services - Indonesia
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
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- Mercator Lines Limited - India
- Singapore Mercantile Exchange
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