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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, 18 February 20
CORONAVIRUS AND ITS IMPACT ON YOUR CONTRACT - CAN YOU RELY ON 'FORCE MAJEURE'? - INCE
KNOWLEDGE TO ELEVATE
On 30 January 2020, the World Health Organization (WHO) declared that the outbreak of the Novel Coronavirus (officially t ...
Monday, 17 February 20
IMO-2020 SULPHUR CAP - ISSUES TO CONSIDER PRIOR TO THE IMPLEMENTATION OF THE CARRIAGE BAN ON 1 MARCH 2020 - STANDARD CLUB
With the IMO 2020 global sulphur cap now in force, members should bear in mind another significant date in relation to the ‘carriage ban&rsqu ...
Monday, 17 February 20
COVID-19: THE EFFECT OF THIS PUBLIC HEALTH EMERGENCY ON CHARTERPARTY TERMS - GARD
KNOWLEDGE TO ELEVATE
Is it useful to compare the COVID-19 with earlier disease outbreaks?
A comparison with the Ebola outbreak ...
Saturday, 15 February 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - REUTERS
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Saturday, 15 February 20
CHEN ZHIDA: NOVEL CORONAVIRUS - IMPLICATIONS FOR CHARTERPARTIES - SHIPOWNERS' CLUB
KNOWLEDGE TO ELEVATE
Last month, the Club issued a bulletin on the 2019 Novel Coronavirus (COVID-19) which explained the origin of the virus a ...
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Showing 1126 to 1130 news of total 6871 |
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- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Mercuria Energy - Indonesia
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- Port Waratah Coal Services - Australia
- PTC India Limited - India
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Parry Sugars Refinery, India
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- India Bulls Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- Marubeni Corporation - India
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Independent Power Producers Association of India
- PowerSource Philippines DevCo
- Semirara Mining and Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Directorate Of Revenue Intelligence - India
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- CNBM International Corporation - China
- Asmin Koalindo Tuhup - Indonesia
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Orica Mining Services - Indonesia
- Agrawal Coal Company - India
- Semirara Mining Corp, Philippines
- Eastern Coal Council - USA
- Bharathi Cement Corporation - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- Manunggal Multi Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Carbofer General Trading SA - India
- Borneo Indobara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Economic Council, Georgia
- Cement Manufacturers Association - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- Karaikal Port Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Grasim Industreis Ltd - India
- The Treasury - Australian Government
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- South Luzon Thermal Energy Corporation
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
- TeaM Sual Corporation - Philippines
- McConnell Dowell - Australia
- Sojitz Corporation - Japan
- Bukit Baiduri Energy - Indonesia
- Indogreen Group - Indonesia
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Global Business Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- Eastern Energy - Thailand
- Madhucon Powers Ltd - India
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Lanco Infratech Ltd - India
- Central Java Power - Indonesia
- Thiess Contractors Indonesia
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Medco Energi Mining Internasional
- Star Paper Mills Limited - India
- Price Waterhouse Coopers - Russia
- Baramulti Group, Indonesia
- Tamil Nadu electricity Board
- Holcim Trading Pte Ltd - Singapore
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Minerals Council of Australia
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Thai Mozambique Logistica
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Gujarat Sidhee Cement - India
- Edison Trading Spa - Italy
- Sarangani Energy Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Miang Besar Coal Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- ASAPP Information Group - India
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- Ministry of Finance - Indonesia
- Rio Tinto Coal - Australia
- Kaltim Prima Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- SN Aboitiz Power Inc, Philippines
- GMR Energy Limited - India
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Parliament of New Zealand
- The University of Queensland
- SMG Consultants - Indonesia
- MS Steel International - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Coalindo Energy - Indonesia
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Planning Commission, India
- Aboitiz Power Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Toyota Tsusho Corporation, Japan
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- Siam City Cement - Thailand
- Leighton Contractors Pty Ltd - Australia
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