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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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Saturday, 18 January 20
GERMAN STEAM COAL IMPORTS IN 2019 PLUMMETED BY 17 % - COAL IMPORTERS ASSOCIATION
Press Release: According to preliminary calculations by the German Coal Importers Association (Verein der Kohlenimporteure e. V.), world trade in h ...
Saturday, 18 January 20
A 61,400 DWT FIXED FROM SOUTH EAST ASIA DELIVERY EAST KALIMANTAN REDELIVERY WEST COAST INDIA IN THE LOW $7,000S - BALTIC BRIEFING
Capesize
The market was relatively stable over this past week putting an end to the past months of more extreme declines. While the Capesize 5T ...
Friday, 17 January 20
EIA ESTIMATES THAT U.S. COAL PRODUCTION DECLINED BY 65 MMST (9%) TO 690 MMST IN 2019. IN 2020, COAL PRODUCTION WILL DECLINE BY A FURTHER 14% TO 597 MMST
U.S. Coal Supply.
EIA estimates that U.S. coal production declined by 65 million short tons (MMst) (9%) to 690 MMst in 2019. In 2020, EIA ...
Friday, 17 January 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index, a gauge of coal p ...
Thursday, 16 January 20
SUPRAMAX: INDO/CHINA ROUND VOYAGE FIXING AROUND LOW/MID USD 6,000 BSS APS INDO - FEARNLEYS
Capesize
Still very rough seas for the big ships, with the majority of the fleet trading Far East or fronthaul and consequently earning far les ...
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- PetroVietnam Power Coal Import and Supply Company
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Gujarat Mineral Development Corp Ltd - India
- Manunggal Multi Energi - Indonesia
- Oldendorff Carriers - Singapore
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Sindya Power Generating Company Private Ltd
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Indian Energy Exchange, India
- Agrawal Coal Company - India
- Port Waratah Coal Services - Australia
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- ASAPP Information Group - India
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- Riau Bara Harum - Indonesia
- Banpu Public Company Limited - Thailand
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Parry Sugars Refinery, India
- Singapore Mercantile Exchange
- Ceylon Electricity Board - Sri Lanka
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Bukit Makmur.PT - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Planning Commission, India
- Kumho Petrochemical, South Korea
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Wood Mackenzie - Singapore
- South Luzon Thermal Energy Corporation
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- White Energy Company Limited
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- GVK Power & Infra Limited - India
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Ind-Barath Power Infra Limited - India
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- McConnell Dowell - Australia
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Carbofer General Trading SA - India
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Makarim & Taira - Indonesia
- Timah Investasi Mineral - Indoneisa
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Parliament of New Zealand
- Bulk Trading Sa - Switzerland
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Gujarat Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Georgia Ports Authority, United States
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- PTC India Limited - India
- Chettinad Cement Corporation Ltd - India
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Pendopo Energi Batubara - Indonesia
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Indika Energy - Indonesia
- Semirara Mining Corp, Philippines
- CIMB Investment Bank - Malaysia
- Kobexindo Tractors - Indoneisa
- SMG Consultants - Indonesia
- Samtan Co., Ltd - South Korea
- Kartika Selabumi Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Siam City Cement PLC, Thailand
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Eastern Coal Council - USA
- IEA Clean Coal Centre - UK
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMC Global Power, Philippines
- Coalindo Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- PNOC Exploration Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhatia International Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Central Java Power - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- Globalindo Alam Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Interocean Group of Companies - India
- Antam Resourcindo - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Binh Thuan Hamico - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- Eastern Energy - Thailand
- Chamber of Mines of South Africa
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Ministry of Finance - Indonesia
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Lanco Infratech Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Romanian Commodities Exchange
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Sree Jayajothi Cements Limited - India
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- Australian Coal Association
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
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