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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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Wednesday, 26 February 20
AS ALL OF THE GLOBAL COAL GIANTS EXIT SOUTH AFRICA, ESKOM TO DEPEND ON TWO MINERS FOR 70% OF ITS SUPPLY - BUSINESS INSIDER
While some of its politicians continue to imagine that coal has a future in South Africa, two key developments from the real world show that securi ...
Tuesday, 25 February 20
DELTA DUNIA MAKMUR REGISTERED A NET PROFIT OF US$20 MILLION FOR FY 2019
PT Delta Dunia Makmur, one of the largest coal mining company in Indonesia, has recorded an US$882 million revenue for FY 2019, 1% lower compared t ...
Tuesday, 25 February 20
SHIPPING UPDATE - ALLIED
The positive feeling and optimism for a fresh rally during the first few months of 2020 that prevailed in the tanker markets during the final quart ...
Monday, 24 February 20
COULD SOME VLSFO FUELS BE BANNED? - GIBSON
The run up to the implementation of the new IMO rules on marine fuels from1st January 2020 had owners and charterers analysing the vari ...
Monday, 24 February 20
CHINA SAYS MAJOR COAL FIRMS RESTORE 95% OF PRODUCTION CAPACITY - REUTERS
China’s coal companies controlled by the central government have resumed operations and are back at more than 95% of their capacity, an offic ...
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Showing 1106 to 1110 news of total 6871 |
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- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- Simpson Spence & Young - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bhushan Steel Limited - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Marubeni Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- GN Power Mariveles Coal Plant, Philippines
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- Parliament of New Zealand
- Ceylon Electricity Board - Sri Lanka
- Jorong Barutama Greston.PT - Indonesia
- Wilmar Investment Holdings
- Karbindo Abesyapradhi - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Singapore Mercantile Exchange
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- AsiaOL BioFuels Corp., Philippines
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Energy Development Corp, Philippines
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Tamil Nadu electricity Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Altura Mining Limited, Indonesia
- ASAPP Information Group - India
- Bukit Makmur.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Posco Energy - South Korea
- Jindal Steel & Power Ltd - India
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Antam Resourcindo - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- Sakthi Sugars Limited - India
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Interocean Group of Companies - India
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- Larsen & Toubro Limited - India
- Leighton Contractors Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- The Treasury - Australian Government
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Agrawal Coal Company - India
- Trasteel International SA, Italy
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Mineral Development Corp Ltd - India
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Central Java Power - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- New Zealand Coal & Carbon
- Ministry of Finance - Indonesia
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Thiess Contractors Indonesia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- SMG Consultants - Indonesia
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Parry Sugars Refinery, India
- PowerSource Philippines DevCo
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Attock Cement Pakistan Limited
- SMC Global Power, Philippines
- Essar Steel Hazira Ltd - India
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Petron Corporation, Philippines
- Planning Commission, India
- Australian Coal Association
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Global Business Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- The University of Queensland
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
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