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Sunday, 26 January 20
SHIPPING NEEDS TO PREPARE FOR CORONAVIRUS RESTRICTIONS WARNS HILL DICKINSON
 The shipping industry needs to be prepared for potential restrictions in order to prevent the further spread of the ‘Wuhan’ coronavirus, advises a leading maritime law firm.
Preparation for potential escalation is needed advises Beth Bradley, a Partner with Hill Dickinson, who says that shipping should be prepared to face the same issues that arose in previous severe disease outbreaks, such as with other coronaviruses or Ebola, such as infection of crew members, quarantine measures, closure of ports, and possible repercussions on charterparty obligations.
“While this outbreak is not currently anticipated to cause the global complications experienced by the Ebola and Sars outbreaks, it is wise for ship operators and charterers to be prepared for any greater spread of this virus,” she says.
Quarantine and Deviation
Delays caused by quarantines and deviations have a different impact under charterparties. In relation to the safety of the crew, employers have a duty of care towards the crew under their employment contracts, and a breach of such a duty may lead to exposure to a variety of claims.
Under time charterparties, when a vessel is delayed by a quarantine or is forced to deviate due to an infected crew member, the vessel may be placed off-hire, subject to the wording of the charter. Common wordings of charterparties have been held to place the vessel off-hire due to legal or administrative restraints if they related to the efficiency or condition of the vessel or crew. In spite of this, should the delay be the inevitable result of orders resulting from how the charterers chose to employ the vessel, the vessel may remain on hire. The outcome in each case will depend on the facts and the wording of the charterparty.
Under voyage charters, a deviation for the safety of the crew will be at the shipowner’s expense as no additional freight may be payable unless, under the Hague or Hague-Visby Rules, a “reasonable deviation” defence is successfully raised.
NOR and Free Pratique
In order to commence laytime under a voyage charterparty, owners need to tender a valid Notice of Readiness (NOR). For owners to do so, a vessel requires free pratique. Absent wording to the contrary in the charterparty, everyday practice provides that a Master can give a valid NOR without having first obtained free pratique, provided that there is no reason to assume that it is anything other than a mere formality.
However, in cases of an outbreak, a vessel may be subject to quarantine delays, such that the assumption that the vessel will be able to obtain free pratique will not be a mere formality. If a vessel is calling or has called in an infected area, special protective measures may cause delays until the health of the crew is ascertained. The risk of such delays until a valid NOR is capable of being tendered is borne by the owner, unless the charterparty provides otherwise.
Safe Port Warranty
Under a charterparty, charterers are under an obligation to nominate a safe port, an order with which the shipowners must comply with unless there is an unacceptable risk, or the port is known to be unsafe. Risks to the crew may render a port unsafe even where there is no risk of real damage to the vessel. Consequently, a contagious disease may legally make a port unsafe.
The safety of a port depends greatly on whether proper precautions and protective measures are in place to ensure that a vessel can call at the port without risking infection of its crew. Such measures were taken during both the Ebola and MERS outbreaks, and numerous ports remained open despite being affected by the outbreak.
At present, the Wuhan virus is not at a stage where it may render a port unsafe, and the severity of the outbreak would need to escalate significantly before owners could reasonably refuse to call at scheduled or nominated ports on the basis of the ports being unsafe.
Force majeure
A standard force majeure clause suspends and/or terminates the contract on the occurrence of an extraordinary event beyond the parties’ reasonable control, which materially affects the parties’ ability to perform their contractual obligations. Such an occurrence should not reasonably have been foreseen or provided against.
John Agapitos, Hill Dickinson paralegal, adds: At this time, there have only been internal transport bans affecting certain Chinese cities around the centre of the outbreak. There has not yet been a travel ban to China or any other neighbouring countries. It is unlikely that any given situation will fall within the scope of a force majeure clause, unless the wording of a particular clause is quite broadly drafted. However, if the outbreak escalates in the future and/or travel bans are imposed, questions of whether it amounts to a force majeure event may come to the fore.”
Source: Hill Dickinson
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Sunday, 26 January 20
SUPRAMAX: THE ASIAN BASIN SAW A 56,000DWT SHIP FIXING DELIVERY SAMARINDA TRIP TO WEST COAST INDIA AT $4,750 - BALTIC BRIEFING
Capesize
The market endured heavy losses throughout the past week, with the Capesize 5TC dropping from $8,352 to $4,772. In the lead up to Chin ...
Friday, 24 January 20
LOW-SULPHUR FUEL OIL PRICES DROP USD 99 PER MT IN SINGAPORE - BIMCO
Singapore has seen one of the largest drops in the price of Very Low Sulphur Fuel Oil (VLSFO), which peaked on 7 January 2020 at USD 740 per metric ...
Friday, 24 January 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINED FLAT DURING THE PAST WEEK - XINHUA
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, stood at 553 yuan (about 80.1 U.S. dollars) ...
Thursday, 23 January 20
PANAMAX: ANOTHER DISAPPOINTING WEEK IN BOTH THE ATLANTIC AND THE PACIFIC BASIN - FEARNLEYS
Cape Size
From bad to worse for the biggest ships as prices for low-sulphur fuel oil remain high whilst freight rates deteriorate further. Aver ...
Thursday, 23 January 20
AFRICAN POWER PLATFORM PUBLISHES REPORTS ON POWER SECTOR FRAMEWORK FOR SELECTED AFRICAN COUNTRIES
Press Release: African Power Platform publishes Reports on Power Sector Framework for selected African Countries
With the repo ...
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- Billiton Holdings Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Deloitte Consulting - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Indian Energy Exchange, India
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- CIMB Investment Bank - Malaysia
- Electricity Authority, New Zealand
- India Bulls Power Limited - India
- Sojitz Corporation - Japan
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Cigading International Bulk Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Larsen & Toubro Limited - India
- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Globalindo Alam Lestari - Indonesia
- Wilmar Investment Holdings
- Australian Coal Association
- Ministry of Mines - Canada
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Orica Australia Pty. Ltd.
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Anglo American - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Planning Commission, India
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
- Carbofer General Trading SA - India
- Posco Energy - South Korea
- Leighton Contractors Pty Ltd - Australia
- Standard Chartered Bank - UAE
- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Independent Power Producers Association of India
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- International Coal Ventures Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Indonesian Coal Mining Association
- Minerals Council of Australia
- Uttam Galva Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Formosa Plastics Group - Taiwan
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Riau Bara Harum - Indonesia
- LBH Netherlands Bv - Netherlands
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- The Treasury - Australian Government
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Finance - Indonesia
- Ambuja Cements Ltd - India
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- Kideco Jaya Agung - Indonesia
- Vizag Seaport Private Limited - India
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Videocon Industries ltd - India
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- Semirara Mining and Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Lanco Infratech Ltd - India
- Kartika Selabumi Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Parry Sugars Refinery, India
- Alfred C Toepfer International GmbH - Germany
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Altura Mining Limited, Indonesia
- San Jose City I Power Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- Parliament of New Zealand
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Makarim & Taira - Indonesia
- Price Waterhouse Coopers - Russia
- Sical Logistics Limited - India
- PNOC Exploration Corporation - Philippines
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bangladesh Power Developement Board
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Maharashtra Electricity Regulatory Commission - India
- Goldman Sachs - Singapore
- Semirara Mining Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Latin American Coal - Colombia
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Toyota Tsusho Corporation, Japan
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