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Tuesday, 03 March 20
IMPORTANCE OF MASTER'S CARGO CHECKS - BALTIC EXCHANGE
 KNOWLEDGE TO ELEVATE
Adecision in recent High Court case has made it clear that there is no implied indemnity from a charterer to their counterpart owners if cargo shippers present bills of lading that record the cargo as being loaded clean on board, even if the shippers could have ascertained that the cargo was in fact damaged at the time of loading.
Ince partner Jamila Khan and managing associate Natalie Nielsen lay out the facts of the case. Noble Chartering Inc (the disponent owner) timechartered a vessel from the head owner and then sub-voyage chartered the vessel to Priminds Shipping (HK) Co Ltd (the voyage charterer). Under the voyage charterparty, the vessel loaded a cargo of soya beans in bulk at Santos, Argentina, for discharge at Guangzhou, China. The cargo was loaded by the cargo shipper from a silo via mechanical hoppers.
At the discharge port, the cargo receiver discovered that portions of the cargo had suffered heat and mould damage. In order to prevent the arrest of the vessel, the shipowner secured the receiver’s cargo claim and agreed that it would be subject to Chinese law and the jurisdiction of the Chinese courts. The receiver’s cargo claim was litigated in the Chinese courts, who found the shipowner liable to the receiver for $1,086,564.70.
The shipowner in turn brought a claim against the disponent owner under the terms of the time charterparty, seeking a contribution of 50% of the sum paid to the receiver. This claim was settled by the disponent owner paying $500,000 to the shipowner.
The disponent owner then commenced London arbitration against the voyage charterer under the voyage charterparty, seeking to recover the $500,000 paid to the shipowner and the costs of defending that claim. The disponent owner claimed that they were owed an indemnity for these costs, although there was no express provision in the voyage charterparty providing for such an indemnity.
Arbitration findings
Following arbitration, the Tribunal’s Award highlighted the facts that the cargo had been damaged by heating caking and by mould; that both types of damage were pre-existing at the time of loading but were not reasonably visible to the Master during loading, so the Master could not have verified the condition of the cargo; and the damage would have been reasonably visible to the shipper at the time of loading.
The disponent owner argued that the words “Clean on Board” and “SHIPPED at the Port of Loading in apparent good order and condition” in the draft bill of lading that the shipper provided to the Master for his signature amounted to a representation or warranty by the shipper as to the apparent condition of the cargo at the time of loading. The disponent owners pointed out that the shipper was acting as the voyage charterer’s agent in loading the cargo and said that, by presenting the draft bill of lading in those terms, it had represented that the cargo was in good order when it was loaded – although it was not – and so the voyage charterer owed them an indemnity for the losses caused by the cargo damage.
The Court rejected this argument, stating that although the Hague Rules provide an indemnity in respect of information provided by the charterer which is included in the bills of lading (for example, the marks on bales of cargo or the cargo weights), this indemnity did not extend to statements concerning the apparent order and condition of the cargo. The wording relating to the condition of the cargo in the draft bill of lading was not a representation or a warranty by the shipper or voyage charterer, but was instead an invitation to the Master to make a representation of fact about the state of the cargo, in accordance with his own assessment of the cargo’s apparent condition. Accordingly, the Court held that the voyage charterer did not owe an implied indemnity to the disponent owner in relation to the cargo claim.
Viewpoint
Commented Ms Khan and Ms Nielsen: “Industry observers are unlikely to be surprised by the Court’s ruling in this case, as it has long been understood that it is incumbent on a master to perform his own assessment of the apparent state of the cargo during loading and, if necessary, to clause the bill of lading (despite any “clean” wording in the draft provided by the shippers).
“In practice, a master is often not in a position to make an accurate assessment of the condition of the cargo while it is being loaded. Under English law this gives the shipowners a defence under the Hague/Hague-Visby Rules against a claim brought by the cargo receivers. However, due to the global nature of shipping, a shipowner could face a situation where they are obliged to accept the jurisdiction of a local court that does not apply these defences in the same way. In such circumstances, the shipowner will only be able to pass this claim down to their charterers if the charterparty terms permit it, for example by incorporating the terms of the Inter-Club Agreement.
“This decision makes it clear that there is no implied indemnity from a charterer to their counterpart owners if their agents (the cargo shippers) present bills of lading that record the cargo as being loaded clean on board, even if the shippers could have ascertained that the cargo was in fact damaged at the time of loading.”
Source: The Baltic Exchange
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Tuesday, 24 March 20
THE TRIPLE SHOCK OF CORONAVIRUS IN SHIPPING: WILL IT LAST? - DREWRY
Transport capacity shortages, disruptions to supply chains and inability to plan since late January have been a dangerous combination. But will all ...
Tuesday, 24 March 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX DOWN 0.28 PCT - XINHUA
China Taiyuan coal transaction price index stood at 132.74 points Monday, down 0.28 percent week on week.
The index, released by Chi ...
Monday, 23 March 20
CHARTERPARTY REQUIREMENTS TO NOTIFY CLAIMS - TAKE CARE! - WFW
KNOWLEDGE TO ELEVATE
Voyage charterparties frequently require the owner to notify any claim with supporting documents within a relatively shor ...
Monday, 23 March 20
COAL INDIA LIMITED'S ONE-DAY OUTPUT PEAKS AT 3.17 MT - THE HINDU
Coal India Limited (CIL) output peaked at a new high of 3.17 million tonnes (MT) on March 20, overtaking the 3.14 MT production recorded on March 2 ...
Monday, 23 March 20
KOMIPO INVITED BIDS FOR 1.45 MILLION TONS OF COAL FOR JUNE & JULY 2020 LOADING
COALspot.com: Korea Midland Power Co.,Ltd (KOMIPO), on behalf of five Korean Gencos, has issued an international tender for total 1,450,000 MT (&pl ...
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- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
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- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- Bayan Resources Tbk. - Indonesia
- Australian Commodity Traders Exchange
- Power Finance Corporation Ltd., India
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
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- Eastern Energy - Thailand
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- Global Green Power PLC Corporation, Philippines
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- Orica Australia Pty. Ltd.
- Indian Energy Exchange, India
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- Singapore Mercantile Exchange
- Kartika Selabumi Mining - Indonesia
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- Siam City Cement PLC, Thailand
- Leighton Contractors Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
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- Coal and Oil Company - UAE
- The University of Queensland
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- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
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- Bharathi Cement Corporation - India
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- Gujarat Electricity Regulatory Commission - India
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- Bukit Baiduri Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
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- Uttam Galva Steels Limited - India
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- White Energy Company Limited
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- IEA Clean Coal Centre - UK
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Economic Council, Georgia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Thiess Contractors Indonesia
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- ASAPP Information Group - India
- IHS Mccloskey Coal Group - USA
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Independent Power Producers Association of India
- SN Aboitiz Power Inc, Philippines
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- European Bulk Services B.V. - Netherlands
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Aboitiz Power Corporation - Philippines
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Oldendorff Carriers - Singapore
- Alfred C Toepfer International GmbH - Germany
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Goldman Sachs - Singapore
- Chamber of Mines of South Africa
- OPG Power Generation Pvt Ltd - India
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- PetroVietnam Power Coal Import and Supply Company
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- PowerSource Philippines DevCo
- Wilmar Investment Holdings
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- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Indogreen Group - Indonesia
- Petron Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Australian Coal Association
- Baramulti Group, Indonesia
- Standard Chartered Bank - UAE
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Bukit Makmur.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- London Commodity Brokers - England
- Renaissance Capital - South Africa
- Vedanta Resources Plc - India
- Tamil Nadu electricity Board
- Iligan Light & Power Inc, Philippines
- Mjunction Services Limited - India
- Maheswari Brothers Coal Limited - India
- Georgia Ports Authority, United States
- The Treasury - Australian Government
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Minerals Council of Australia
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- GVK Power & Infra Limited - India
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- Interocean Group of Companies - India
- Wood Mackenzie - Singapore
- Indika Energy - Indonesia
- Vizag Seaport Private Limited - India
- Latin American Coal - Colombia
- Globalindo Alam Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Kalimantan Lumbung Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- AsiaOL BioFuels Corp., Philippines
- SMC Global Power, Philippines
- Marubeni Corporation - India
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Essar Steel Hazira Ltd - India
- Attock Cement Pakistan Limited
- Bhushan Steel Limited - India
- Indonesian Coal Mining Association
- SMG Consultants - Indonesia
- Directorate Of Revenue Intelligence - India
- Bangladesh Power Developement Board
- Maharashtra Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Kaltim Prima Coal - Indonesia
- Borneo Indobara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Port Waratah Coal Services - Australia
- Barasentosa Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- Savvy Resources Ltd - HongKong
- Electricity Generating Authority of Thailand
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Mintek Dendrill Indonesia
- Miang Besar Coal Terminal - Indonesia
- Orica Mining Services - Indonesia
- GMR Energy Limited - India
- Agrawal Coal Company - India
- Central Java Power - Indonesia
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sojitz Corporation - Japan
- Videocon Industries ltd - India
- Binh Thuan Hamico - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement - Thailand
- Simpson Spence & Young - Indonesia
- Aditya Birla Group - India
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