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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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Friday, 14 February 20
IS THE US COAL INDUSTRY COMPLETELY BURNED OUT? -FORBES
This is the fourth of a multi-part series on the state of the main sources of energy in the US and how they compare globally. The series will cover ...
Friday, 14 February 20
FITCH RTGS: GLOBAL PORTS VULNERABLE TO CORONAVIRUS - RELATED VOLUME DECLINES
Global ports will see reduced trade volumes as a result of the coronavirus, COVID-19, which would become more severe should Chinese production take ...
Thursday, 13 February 20
INDIA: MAJOR PORTS SHOW MUTED GROWTH IN CARGO AS THERMAL COAL VOLUME SLIDES 15% - BUSINESS STANDARD
A sharp slide of 15 per cent in thermal coal volumes weighed on the performance of major ports during the period of April-January of FY20. The majo ...
Wednesday, 12 February 20
REFINING SET FOR A CHALLENGING 2020 - WOOD MACKENZIE
Downstream isn’t the glamorous end of the oil business. And in Big Oil, it’s typically dwarfed by upstream. Yet having been forced to r ...
Wednesday, 12 February 20
COAL INDIA WILL EXCEED LAST YEAR'S PRODUCTION FIGURES: OFFICIAL - PTI
Despite coal production being hampered at Dipka mines due to prolonged rains, Coal India Ltd will exceed last year’s production figures, a to ...
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- Africa Commodities Group - South Africa
- Singapore Mercantile Exchange
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- Kapuas Tunggal Persada - Indonesia
- White Energy Company Limited
- Eastern Energy - Thailand
- International Coal Ventures Pvt Ltd - India
- Indonesian Coal Mining Association
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Sakthi Sugars Limited - India
- Uttam Galva Steels Limited - India
- Salva Resources Pvt Ltd - India
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- ASAPP Information Group - India
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Petron Corporation, Philippines
- SMC Global Power, Philippines
- Coal and Oil Company - UAE
- Gujarat Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- VISA Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- GMR Energy Limited - India
- Romanian Commodities Exchange
- Planning Commission, India
- San Jose City I Power Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- Kepco SPC Power Corporation, Philippines
- Siam City Cement - Thailand
- Gujarat Sidhee Cement - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- Leighton Contractors Pty Ltd - Australia
- Interocean Group of Companies - India
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- The University of Queensland
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Global Business Power Corporation, Philippines
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Iligan Light & Power Inc, Philippines
- Mintek Dendrill Indonesia
- European Bulk Services B.V. - Netherlands
- Semirara Mining Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Port Waratah Coal Services - Australia
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- McConnell Dowell - Australia
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Chamber of Mines of South Africa
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Central Java Power - Indonesia
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Jindal Steel & Power Ltd - India
- MS Steel International - UAE
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- Trasteel International SA, Italy
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Anglo American - United Kingdom
- LBH Netherlands Bv - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Tata Chemicals Ltd - India
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Vedanta Resources Plc - India
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Deloitte Consulting - India
- Marubeni Corporation - India
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Coalindo Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dalmia Cement Bharat India
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Directorate Of Revenue Intelligence - India
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- London Commodity Brokers - England
- Agrawal Coal Company - India
- CNBM International Corporation - China
- Independent Power Producers Association of India
- Sical Logistics Limited - India
- Bhatia International Limited - India
- Makarim & Taira - Indonesia
- Bharathi Cement Corporation - India
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Coastal Gujarat Power Limited - India
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Antam Resourcindo - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Borneo Indobara - Indonesia
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- Wood Mackenzie - Singapore
- Thiess Contractors Indonesia
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- Straits Asia Resources Limited - Singapore
- ICICI Bank Limited - India
- Vizag Seaport Private Limited - India
- Commonwealth Bank - Australia
- Xindia Steels Limited - India
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Sindya Power Generating Company Private Ltd
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Australian Commodity Traders Exchange
- Mercuria Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Formosa Plastics Group - Taiwan
- CIMB Investment Bank - Malaysia
- Rio Tinto Coal - Australia
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Indogreen Group - Indonesia
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Economic Council, Georgia
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