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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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Tuesday, 14 January 20
SHIPPING MARKET ANALYSIS - ALLIED SHIPBROKING
Uncertainty in the global geopolitical sphere seems to have not come to an end along with 2019, as 2020 commenced with renewed tensions between the ...
Tuesday, 14 January 20
DRY BULK MARKET: "THIS IS NOT THE END OF COAL" SAYS IEA - BALTIC EXCHANGE
A historic drop in coal-fired electricity generation will not sway global coal demand from its upward trajectory through to 2024, though growth wil ...
Saturday, 11 January 20
ARE YOU 95% CONFIDENT THAT YOUR VERY LOW SULPHUR FUEL IS ON SPEC AND MARPOL COMPLIANT? - GARD
KNOWLEDGE TO ELEVATE
Bunker fuel is a commodity and, like all commodities, is produced and sold according to specifications. Bunkers are usual ...
Saturday, 11 January 20
NEW PRICING COULD SPELL TROUBLE FOR CHINA'S COAL SECTOR - CHINA DIALOGUE
Benchmark coal tariffs have been the foundation of China’s electricity pricing since 2004 but this mechanism was replaced on January 1 with a ...
Saturday, 11 January 20
BALTIC BRIEFING TANKER REPORT - WEEK 2
VLCC
Escalating tensions between the USA and Iran, in addition to a continuing strong market, made for an interesting week, with rates firming ...
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- White Energy Company Limited
- Lanco Infratech Ltd - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- ASAPP Information Group - India
- European Bulk Services B.V. - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Port Waratah Coal Services - Australia
- Alfred C Toepfer International GmbH - Germany
- Ind-Barath Power Infra Limited - India
- McConnell Dowell - Australia
- Gujarat Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
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- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Straits Asia Resources Limited - Singapore
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- Madhucon Powers Ltd - India
- South Luzon Thermal Energy Corporation
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- GAC Shipping (India) Pvt Ltd
- Bukit Baiduri Energy - Indonesia
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Chamber of Mines of South Africa
- Romanian Commodities Exchange
- Simpson Spence & Young - Indonesia
- Xindia Steels Limited - India
- Mercuria Energy - Indonesia
- Borneo Indobara - Indonesia
- SMG Consultants - Indonesia
- Siam City Cement PLC, Thailand
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Electricity Generating Authority of Thailand
- Karaikal Port Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Goldman Sachs - Singapore
- Jindal Steel & Power Ltd - India
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- Commonwealth Bank - Australia
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- IEA Clean Coal Centre - UK
- Essar Steel Hazira Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Africa Commodities Group - South Africa
- Semirara Mining and Power Corporation, Philippines
- SMC Global Power, Philippines
- Planning Commission, India
- Indo Tambangraya Megah - Indonesia
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Marubeni Corporation - India
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meenaskhi Energy Private Limited - India
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- Kepco SPC Power Corporation, Philippines
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Tata Chemicals Ltd - India
- San Jose City I Power Corp, Philippines
- The University of Queensland
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Star Paper Mills Limited - India
- Rashtriya Ispat Nigam Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Mercator Lines Limited - India
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Price Waterhouse Coopers - Russia
- India Bulls Power Limited - India
- Bhatia International Limited - India
- Riau Bara Harum - Indonesia
- Medco Energi Mining Internasional
- Cement Manufacturers Association - India
- Karbindo Abesyapradhi - Indoneisa
- Savvy Resources Ltd - HongKong
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- The State Trading Corporation of India Ltd
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- Vedanta Resources Plc - India
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Malabar Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Rio Tinto Coal - Australia
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Oldendorff Carriers - Singapore
- Parry Sugars Refinery, India
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Leighton Contractors Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
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