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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, 03 March 20
COAL'S SHARE OF CHINA ENERGY MIX FALLS IN 2019 BUT CONSUMPTION STILL RISING - REUTERS
Coal accounted for 57.7% of China’s primary energy consumption in 2019, the National Bureau of Statistics said on Friday, down 1.5 percentage ...
Monday, 02 March 20
SHIPOWNERS AND OPERATORS COULD FACE DETENTION OF SHIPS FROM 1ST MARCH UNDER IMO RULE - ICS
Port state control authorities will begin to enforce the IMO’s Sulphur 2020 from 1st March, making it an offense for ships to carry fuel that ...
Saturday, 29 February 20
SUPRAMAX SENTIMENT WAS UP IN A FEW KEY AREAS OVER THE LAST WEEK - BALTIC BRIEFING
Capesize
The Capesize market woes related to Coronavirus have now spread through the wider global markets like wildfire. The wider supply and d ...
Thursday, 27 February 20
FOREIGN COMPANIES LIKELY TO SKIP COMMERCIAL COAL BLOCK AUCTIONS - ECONOMIC TIMES
The Centre is in the process of inviting global players for commercial mining, following 100% foreign direct investment in the sector. However, giv ...
Wednesday, 26 February 20
SHIPPING MARKET INSIGHT - INTERMODAL
Coming from one of its busiest periods historically, with a list of scrubber and BWMS retrofits on a waiting list, the ship repair sector is witnes ...
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Showing 1101 to 1105 news of total 6871 |
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- Kobexindo Tractors - Indoneisa
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- Coal and Oil Company - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ICICI Bank Limited - India
- Baramulti Group, Indonesia
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Makarim & Taira - Indonesia
- The University of Queensland
- The State Trading Corporation of India Ltd
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Mintek Dendrill Indonesia
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- CNBM International Corporation - China
- Kalimantan Lumbung Energi - Indonesia
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Economic Council, Georgia
- Parliament of New Zealand
- Vedanta Resources Plc - India
- Sarangani Energy Corporation, Philippines
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Bhatia International Limited - India
- South Luzon Thermal Energy Corporation
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- Deloitte Consulting - India
- Manunggal Multi Energi - Indonesia
- Semirara Mining Corp, Philippines
- Star Paper Mills Limited - India
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Jindal Steel & Power Ltd - India
- OPG Power Generation Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Semirara Mining and Power Corporation, Philippines
- SMG Consultants - Indonesia
- SMC Global Power, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Tamil Nadu electricity Board
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- PTC India Limited - India
- Formosa Plastics Group - Taiwan
- Cigading International Bulk Terminal - Indonesia
- Madhucon Powers Ltd - India
- Electricity Authority, New Zealand
- Salva Resources Pvt Ltd - India
- Parry Sugars Refinery, India
- Carbofer General Trading SA - India
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indika Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Aditya Birla Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- MS Steel International - UAE
- Coalindo Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- Central Java Power - Indonesia
- Siam City Cement - Thailand
- Standard Chartered Bank - UAE
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- PowerSource Philippines DevCo
- Banpu Public Company Limited - Thailand
- Heidelberg Cement - Germany
- Ind-Barath Power Infra Limited - India
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Anglo American - United Kingdom
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Metalloyd Limited - United Kingdom
- Riau Bara Harum - Indonesia
- Power Finance Corporation Ltd., India
- New Zealand Coal & Carbon
- Chettinad Cement Corporation Ltd - India
- Attock Cement Pakistan Limited
- Malabar Cements Ltd - India
- Singapore Mercantile Exchange
- Mercator Lines Limited - India
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Eastern Coal Council - USA
- Energy Development Corp, Philippines
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Gujarat Sidhee Cement - India
- Kaltim Prima Coal - Indonesia
- Energy Link Ltd, New Zealand
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- Ministry of Transport, Egypt
- Therma Luzon, Inc, Philippines
- Bhoruka Overseas - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asmin Koalindo Tuhup - Indonesia
- Savvy Resources Ltd - HongKong
- Petron Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- PNOC Exploration Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Krishnapatnam Port Company Ltd. - India
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Interocean Group of Companies - India
- Bayan Resources Tbk. - Indonesia
- Grasim Industreis Ltd - India
- Indo Tambangraya Megah - Indonesia
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- GVK Power & Infra Limited - India
- Indian Energy Exchange, India
- Medco Energi Mining Internasional
- Merrill Lynch Commodities Europe
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Larsen & Toubro Limited - India
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- London Commodity Brokers - England
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Planning Commission, India
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Electricity Generating Authority of Thailand
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Karbindo Abesyapradhi - Indoneisa
- CIMB Investment Bank - Malaysia
- Antam Resourcindo - Indonesia
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