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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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- Larsen & Toubro Limited - India
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- LBH Netherlands Bv - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- CNBM International Corporation - China
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- Gujarat Mineral Development Corp Ltd - India
- Dalmia Cement Bharat India
- Port Waratah Coal Services - Australia
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Borneo Indobara - Indonesia
- Sakthi Sugars Limited - India
- Bhushan Steel Limited - India
- Central Java Power - Indonesia
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- PowerSource Philippines DevCo
- Videocon Industries ltd - India
- Medco Energi Mining Internasional
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Australian Coal Association
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Latin American Coal - Colombia
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- Eastern Energy - Thailand
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Parliament of New Zealand
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Directorate General of MIneral and Coal - Indonesia
- PTC India Limited - India
- IHS Mccloskey Coal Group - USA
- Carbofer General Trading SA - India
- Renaissance Capital - South Africa
- Indonesian Coal Mining Association
- Indian Energy Exchange, India
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Economic Council, Georgia
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Star Paper Mills Limited - India
- Standard Chartered Bank - UAE
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- European Bulk Services B.V. - Netherlands
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- Bharathi Cement Corporation - India
- Malabar Cements Ltd - India
- Eastern Coal Council - USA
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Maheswari Brothers Coal Limited - India
- Gujarat Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indogreen Group - Indonesia
- Mjunction Services Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Cement Manufacturers Association - India
- Mercator Lines Limited - India
- Therma Luzon, Inc, Philippines
- Sical Logistics Limited - India
- Kaltim Prima Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- GAC Shipping (India) Pvt Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- IEA Clean Coal Centre - UK
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- PetroVietnam Power Coal Import and Supply Company
- New Zealand Coal & Carbon
- Chettinad Cement Corporation Ltd - India
- McConnell Dowell - Australia
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Baramulti Group, Indonesia
- Formosa Plastics Group - Taiwan
- MS Steel International - UAE
- Merrill Lynch Commodities Europe
- Thiess Contractors Indonesia
- Orica Mining Services - Indonesia
- Xindia Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Straits Asia Resources Limited - Singapore
- Rashtriya Ispat Nigam Limited - India
- Power Finance Corporation Ltd., India
- Siam City Cement - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Heidelberg Cement - Germany
- Iligan Light & Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Global Business Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Planning Commission, India
- AsiaOL BioFuels Corp., Philippines
- Sojitz Corporation - Japan
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Marubeni Corporation - India
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Salva Resources Pvt Ltd - India
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- Pendopo Energi Batubara - Indonesia
- Tamil Nadu electricity Board
- Ministry of Transport, Egypt
- Deloitte Consulting - India
- Directorate Of Revenue Intelligence - India
- Indika Energy - Indonesia
- ICICI Bank Limited - India
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Bukit Makmur.PT - Indonesia
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Jindal Steel & Power Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- Uttam Galva Steels Limited - India
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Karaikal Port Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Metalloyd Limited - United Kingdom
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