We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 01 April 19
FORCE MAJEURE SUCCESS NOT A SEA CHANGE - BALTIC EXCHANGE
 KNOWLEDGE TO ELEVATE
It is difficult to successfully argue that contractual performance has been prevented or delayed by force majeure. This is in part because English courts or arbitration tribunals will interpret these clauses strictly and narrowly against the party seeking to rely on them.
Recent decisions, including Triple Point Technology v PTT (2017) and Seadrill Ghana v Tullow Ghana (2018), are evidence of this approach. However, Sucden Middle-East, represented by Nick Fisher of HFW, has recently relied successfully on such a clause in the Commercial Court, on appeal from arbitration.
The case, Sucden Middle-East v Yagci Denizcilik Ve Ticaret Limited Sirketi, “The Mv Muammer Yagci”, involved a shipment of sugar to Algeria on the Sugar Charter Party 1999 form. The facts found by the arbitral tribunal were that when the cargo arrived in Algeria, the cargo-receivers submitted false import documents to local customs authorities. The local customs responded by seizing the cargo, using powers under customs laws and regulations.
A delay to discharging the cargo of four and a half months ensued. Sucden, as charterers, claimed this delay fell within the exceptions to laytime running under clause 28. Owners disagreed. At first instance, the arbitral tribunal agreed with owners.
Charterers appealed to the Commercial Court. Permission to bring the appeal was given on the basis that the question of law was one of general public importance, as it related to a standard form contract in wide commercial usage.
The judgement
The question before the Commercial Court was: “Where a cargo is seized by the local customs authorities at the discharge port causing a delay to discharge, is the time so lost caused by ‘government interferences’ within the meaning of clause 28 of the Sugar Charter Party 1999 form?” Clause 28 reads:
“Strikes and Force Majeure
In the event that whilst at or off the loading place or discharging place the loading and/or discharging of the vessel is prevented or delayed by any of the following occurrences: strikes, riots, civil commotions, lockouts of men, accidents and/or breakdowns on railways, stoppages on railway and/or river and/or canal by ice or frost, mechanical breakdowns at mechanical loading plants, government interferences, vessel being inoperative or rendered inoperative due to terms and conditions of employment of the Officers and Crew, time so lost shall not count as laytime on demurrage or detention…”
In deciding whether a force majeure event had occurred, the Court focused on the construction of “government interferences”. It was fairly straightforward to establish that a government entity acting in a sovereign capacity was involved, but owners argued that the government being involved was not enough and that there had to be “interferences”. In reaching its decision that there had been no interference, the tribunal had considered it a key point that seizure was an “ordinary” action. The Court rejected this conclusion. It held that the seizure of the cargo was not routine and did fall within the meaning of “interferences”. Seizure is a significant exercise of executive power and therefore could not be regarded as “ordinary”. Suspected or predictable consequences are not the same as ordinary actions (such as the inspection of the cargo by a government surveyor): “In the usual course of things, cargo is not seized and property rights are not invaded in that way.” The very fact that false documents were involved showed that the circumstances were not routine.
The Court emphasised that it was of “real importance” that its conclusion on the language was not difficult to apply, nor did it in any way offend commercial common sense.
The owners’ causation argument was also dismissed, as it was held that the seizure caused the delay, even if the submission of false documents caused the seizure.
Further detail
In allowing the appeal, the Court still maintained the strict and narrow approach to force majeure, stressing that “the answer given to the question is only a narrow ‘yes’. It is ‘yes’ where the circumstances are as in the present case. The answer does not address all of the circumstances that may come within or fall outside clause 28. The answer is concerned only with the seizure of a cargo and with that seizure by a customs authority that is a State revenue authority acting in a sovereign capacity”.
This judgment gives some welcome publicly-available guidance on the interpretation of a force majeure clause in a standard form widely used in sugar trading. While the charterers were successfully able to rely on the force majeure clause in this case, it does not signal a change in the strict and narrow approach typically adopted by the English courts.
Source: Baltic Exchange
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 17 January 19
EIA ESTIMATES THAT U.S. COAL EXPORTS WERE 116 MMST IN 2018, 20% HIGHER THAN THE AMOUNT EXPORTED IN 2017
Coal Supply
EIA estimates that coal production declined by 20 million short tons (MMst) (3%) in 2018, despite a 19 MMst increase in U.S. coal e ...
Thursday, 17 January 19
U.S COAL OUTPUT IS EXPECTED TO FALL BY 3 PER CENT IN 2019 - EIA
EIA forecasts that U.S. coal production will total 729 million short tons (MMst) in 2019, down by 25 MMst (3%) from 2018.
Acco ...
Wednesday, 16 January 19
SHIPPING MARKET INSIGHT - INTERMODAL
As we go through the first days of the year and just a few weeks before the Chinese New Year, the ship repair sector is witnessing a big difference ...
Monday, 14 January 19
KOREA SOUTHERN POWER INVITES BIDS FOR 320,000 MT OF MIN 3,800 NCV COAL
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 320,000 MT of min 3,800 kcal/kg NCV coal for ...
Friday, 11 January 19
SUPRAMAX: THE ASIAN ARENA HAD A MIXED START; LIMITED ACTION IN SOUTHEAST ASIA - THE BALTIC BRIEFING
Capesize
Dashed hopes summed up the first full week of the New Year. A slow start followed by a busy 24 hours of improving rates and a firming ...
|
|
|
Showing 1491 to 1495 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- The State Trading Corporation of India Ltd
- SMG Consultants - Indonesia
- Power Finance Corporation Ltd., India
- Posco Energy - South Korea
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- Electricity Generating Authority of Thailand
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Makarim & Taira - Indonesia
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Ind-Barath Power Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Heidelberg Cement - Germany
- Maheswari Brothers Coal Limited - India
- PNOC Exploration Corporation - Philippines
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhatia International Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- GVK Power & Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Mjunction Services Limited - India
- ASAPP Information Group - India
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- New Zealand Coal & Carbon
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Kepco SPC Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Sical Logistics Limited - India
- Indian Energy Exchange, India
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Coalindo Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Intertek Mineral Services - Indonesia
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Standard Chartered Bank - UAE
- Uttam Galva Steels Limited - India
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Independent Power Producers Association of India
- Deloitte Consulting - India
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- Latin American Coal - Colombia
- Billiton Holdings Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Planning Commission, India
- London Commodity Brokers - England
- Bayan Resources Tbk. - Indonesia
- Wilmar Investment Holdings
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Directorate Of Revenue Intelligence - India
- Riau Bara Harum - Indonesia
- Xindia Steels Limited - India
- Chamber of Mines of South Africa
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Grasim Industreis Ltd - India
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Central Java Power - Indonesia
- Borneo Indobara - Indonesia
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Meralco Power Generation, Philippines
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Binh Thuan Hamico - Vietnam
- Sindya Power Generating Company Private Ltd
- Bangladesh Power Developement Board
- Georgia Ports Authority, United States
- Straits Asia Resources Limited - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Dalmia Cement Bharat India
- Eastern Energy - Thailand
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- LBH Netherlands Bv - Netherlands
- Mintek Dendrill Indonesia
- Marubeni Corporation - India
- Carbofer General Trading SA - India
- SMC Global Power, Philippines
- Sinarmas Energy and Mining - Indonesia
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- AsiaOL BioFuels Corp., Philippines
- Tata Chemicals Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Mercator Lines Limited - India
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- Energy Link Ltd, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Directorate General of MIneral and Coal - Indonesia
- Ambuja Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- Trasteel International SA, Italy
- Sojitz Corporation - Japan
- Aditya Birla Group - India
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Sarangani Energy Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- Price Waterhouse Coopers - Russia
- Cigading International Bulk Terminal - Indonesia
- Rio Tinto Coal - Australia
- Siam City Cement PLC, Thailand
- GAC Shipping (India) Pvt Ltd
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Anglo American - United Kingdom
- Indian Oil Corporation Limited
- Holcim Trading Pte Ltd - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
|
| |
| |
|
