COALspot.com keeps you connected across the coal world
  • JANAURY 2021 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$ 75.84 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Monday, 04 January 21
BLISS FOR SHIPOWNERS! DAMAGES MAY BE CLAIMED IN ADDITION TO DEMURRAGE FOR VOYAGE CHARTERPARTY DELAY - WFW
Watson Farley WilliamsKNOWLEDGE TO ELEVATE
 
In a significant decision for the maritime sector, The Eternal Bliss[1], the English Commercial Court has resolved a much-debated question, answering that an owner can, under certain circumstances, recover damages in addition to demurrage for delay to a vessel under a voyage charterparty.

Background
The dry bulk carrier, Eternal Bliss, shipped a cargo of soybeans from Brazil to China on an amended Norgrain voyage charterparty form that provided for the Owners to earn demurrage if the cargo operations exceeded the laytime allowed by the charterparty.
 
The vessel arrived at the Chinese discharge port, but, due to port congestion and limited storage space, discharge was delayed by 31 days.
 
The soybean cargo was found to contain mould and caking damage on discharge, in respect of which the Owners were exposed to a cargo claim under the bill of lading which they settled for about US$1.1m.
 
The Owners advanced claims against the Charterers in a London arbitration, claiming damages and/or an implied indemnity for this cargo liability. They argued that the Charterers’ failure to discharge within the agreed laytime period – in fact a prolonged retention on board the vessel – resulted in damage to this cargo, which would have been in a sound condition but for this delay.
 
Pursuant to section 45 of the Arbitration Act 1996, the parties asked the High Court to determine as a preliminary question of law whether the Owners could recover these damages from the Charterers or whether the Owners’ sole compensation for the Charterers’ failure to discharge within the allocated laytime period was demurrage (i.e. liquidated damages in a fixed amount).
 
Decision
Mr Justice Andrew Baker sought to determine “what it is that demurrage liquidates”. If the issue were free from authority, he would have considered that the Owners had the better of the argument by a clear margin. However, the governing authorities were contradictory, so he proceeded to consider them.
 
The Altus[2]
In The Altus, the High Court found that damages were available to an owner in addition to demurrage, even if there was only one breach of contract. This decision cited the Court of Appeal’s judgment in Reidar v Arcos[3], in which an owner successfully claimed damages by way of deadfreight on top of demurrage.
 
The Bonde[4]
Conversely, Mr Justice Potter in The Bonde stated that demurrage was an exhaustive remedy for a voyage charterer’s failure to load cargo within the agreed time period. Therefore, to obtain general damages in addition to demurrage, the owner had to establish “a breach additional to or separate from that of failing to load within the lays and/or at the agreed rate”. Mr Justice Potter argued he was supported in this approach by the decision in Reidar v Arcos, as informed by comments in Suisse Atlantique[5], on the basis that two breaches in that case were separate in law and therefore warranted two distinct heads of loss.
 
Clarification
Mr Justice Andrew Baker observed that the present case provided an “opportunity to resolve the long-standing uncertainty” which had arisen from these divergent approaches, and which is reflected in the leading textbooks, Scrutton on Charterparties and Voyage Charters.
 
In his view, the court had been wrong in The Altus to conclude that Reidar v Arcos was authority for the proposition that damages could be recovered in addition to demurrage for a single breach.
 
However, the court had also been wrong to conclude in The Bonde that Reidar v Arcos was authority for the contrary proposition, that such damages are not recoverable for a single breach – the judge considered that its reasoning was based on a misreading of Suisse Atlantique and should therefore not be followed.
 
Therefore, neither authority provided the answer, in the judge’s view.
 
On the basis of the agreed facts in this case, the Owners had suffered loss from the vessel’s prolonged detention at port:
  • Through the inability to use the vessel for subsequent transportation of freight; and
  • Through the cargo interests’ claims for the cargo damage.
Consequently, the judge decided that the Owners were entitled to claim both:
  • Demurrage (liquidated, fixed damages) for the vessel’s loss of earnings due to the delay; and
  • Damages for the loss flowing from the deterioration of the cargo (a by-product of the delay producing a different kind of loss).
Conclusion
This decision will come as welcome news to shipowners, in that it confirms that an owner is not limited to claiming demurrage for delay to a ship if the delay results in a different kind of loss, such as a cargo claim relating to cargo damage that results from the delay.
 
However, the judgment does not squarely answer the question that has arisen in ‘floating storage’ oil tanker cases as to whether an owner can claim damages for detention for a vessel’s lost opportunity to obtain better earnings in a rising market, as opposed to mere demurrage, by virtue of the vessel being used as floating storage. Mr Justice Andrew Baker’s reasoning suggests not, and that damages are merely permissible for a different kind of loss (distinct in nature from, and additional to, detention), meaning that an owner will have to look elsewhere in the charterparty for a possible answer.
 
This article was authored by Athens Partner Evangelos Catsambas and Gerard Rhodes, a trainee solicitor in our London office.
Source: Watson Farley & Williams LLP


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Wednesday, 17 February 21
STRANDED ASSETS A LONG-TERM RISK FOR MAJOR FOSSIL FUEL EXPORTERS - FITCH RATINGS
Fossil exporters face a loss of GDP, government revenue and export receipts from the transition to a lower-carbon economy over the coming decades. ...


Friday, 12 February 21
U.S: WIND SURPASSED COAL AS NO. 1 FUEL SOURCE IN 2020 FOR SOUTHWEST POWER POOL - IEEFA
Wind energy growth due to geography, design factors, and new installations   Wind surpassed coal as the primary power generation sourc ...


Wednesday, 10 February 21
FY21 COAL DEMAND MAY BE LOWER THAN PREVIOUSLY ESTIMATED DUE TO COVID-19: PRALHAD JOSHI - PTI
Coal demand in the current fiscal may be lower than the initial estimate of 1,085 million tonnes (MT) due to the impact of COVID-19, Parliament was ...


Wednesday, 10 February 21
MARKET INSIGHT - INTERMODAL
We have just entered February, Chinese New Year holidays are about to start and the SnP market for bulkers is so hot as every seller would dream of ...


Tuesday, 09 February 21
SWITCHING COAL PLANTS TO PLN'S BIOMASS COFIRING PLAN IS NO MAGIC BULLET - IEEFA
Implementation risks for Indonesia PLN's switch from coal to biomass cofiring   PLN’s biomass cofiring plan will require not ...


   1 2 3 4 5   
Showing 6 to 10 news of total 6236
News by Category
Popular News
 
Total Members : 27,308
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Sojitz Corporation - Japan
  • Mitsubishi Corporation
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Maruti Cements - India
  • Asia Cement - Taiwan
  • PLN - Indonesia
  • Sarangani Energy Corporation, Philippines
  • TeaM Sual Corporation - Philippines
  • Minerals Council of Australia
  • GN Power Mariveles Coal Plant, Philippines
  • CCIC - Indonesia
  • Jaiprakash Power Ventures ltd
  • Semirara Mining Corp, Philippines
  • Global Green Power PLC Corporation, Philippines
  • Gujarat Electricity Regulatory Commission - India
  • IEA Clean Coal Centre - UK
  • Ambuja Cements Ltd - India
  • Simpson Spence & Young - Indonesia
  • SN Aboitiz Power Inc, Philippines
  • Kobexindo Tractors - Indoneisa
  • Meralco Power Generation, Philippines
  • SGS (Thailand) Limited
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • JPower - Japan
  • Essar Steel Hazira Ltd - India
  • Coal and Oil Company - UAE
  • ACC Limited - India
  • EIA - United States
  • Romanian Commodities Exchange
  • APGENCO India
  • Cebu Energy, Philippines
  • Iligan Light & Power Inc, Philippines
  • DBS Bank - Singapore
  • OPG Power Generation Pvt Ltd - India
  • Infraline Energy - India
  • Trasteel International SA, Italy
  • Jatenergy - Australia
  • NALCO India
  • Pinang Coal Indonesia
  • Freeport Indonesia
  • Sucofindo - Indonesia
  • Therma Luzon, Inc, Philippines
  • Rio Tinto Coal - Australia
  • Bhushan Steel Limited - India
  • Mjunction Services Limited - India
  • Marubeni Corporation - India
  • McKinsey & Co - India
  • UOB Asia (HK) Ltd
  • Arch Coal - USA
  • Bangkok Bank PCL
  • Mitsui
  • Tata Power - India
  • Adaro Indonesia
  • Directorate Of Revenue Intelligence - India
  • Vitol - Bahrain
  • IMC Shipping - Singapore
  • Intertek Mineral Services - Indonesia
  • Asian Development Bank
  • Miang Besar Coal Terminal - Indonesia
  • Lanco Infratech Ltd - India
  • Japan Coal Energy Center
  • Tamil Nadu electricity Board
  • Commonwealth Bank - Australia
  • GMR Energy Limited - India
  • Kepco SPC Power Corporation, Philippines
  • Bangladesh Power Developement Board
  • Ministry of Finance - Indonesia
  • IBC Asia (S) Pte Ltd
  • SMC Global Power, Philippines
  • MS Steel International - UAE
  • Sindya Power Generating Company Private Ltd
  • Indika Energy - Indonesia
  • Indonesia Power. PT
  • Holcim Trading Pte Ltd - Singapore
  • European Bulk Services B.V. - Netherlands
  • SMG Consultants - Indonesia
  • Ceylon Electricity Board - Sri Lanka
  • Arutmin Indonesia
  • Thiess Contractors Indonesia
  • Timah Investasi Mineral - Indoneisa
  • Borneo Indobara - Indonesia
  • JPMorgan - India
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Kobe Steel Ltd - Japan
  • Cosco
  • The Treasury - Australian Government
  • Total Coal South Africa
  • Platts
  • Maybank - Singapore
  • Samsung - South Korea
  • Heidelberg Cement - Germany
  • Medco Energi Mining Internasional
  • Aditya Birla Group - India
  • Idemitsu - Japan
  • Cigading International Bulk Terminal - Indonesia
  • RBS Sempra - UK
  • Savvy Resources Ltd - HongKong
  • Peabody Energy - USA
  • Bukit Makmur.PT - Indonesia
  • Tata Chemicals Ltd - India
  • HSBC - Hong Kong
  • SASOL - South Africa
  • PNOC Exploration Corporation - Philippines
  • Permata Bank - Indonesia
  • Renaissance Capital - South Africa
  • Kohat Cement Company Ltd. - Pakistan
  • Ince & co LLP
  • Leighton Contractors Pty Ltd - Australia
  • Wood Mackenzie - Singapore
  • PowerSource Philippines DevCo
  • Russian Coal LLC
  • Vale Mozambique
  • Meenaskhi Energy Private Limited - India
  • Asmin Koalindo Tuhup - Indonesia
  • Eastern Coal Council - USA
  • KPCL - India
  • Standard Chartered Bank - UAE
  • CoalTek, United States
  • Ministry of Transport, Egypt
  • KPMG - USA
  • Cargill India Pvt Ltd
  • Sree Jayajothi Cements Limited - India
  • Berau Coal - Indonesia
  • Bhoruka Overseas - Indonesia
  • Platou - Singapore
  • McConnell Dowell - Australia
  • Parry Sugars Refinery, India
  • Posco Energy - South Korea
  • Shree Cement - India
  • Coastal Gujarat Power Limited - India
  • Siam City Cement PLC, Thailand
  • IOL Indonesia
  • Inspectorate - India
  • NTPC Limited - India
  • Cement Manufacturers Association - India
  • Karbindo Abesyapradhi - Indoneisa
  • White Energy Company Limited
  • Enel Italy
  • Maharashtra Electricity Regulatory Commission - India
  • Billiton Holdings Pty Ltd - Australia
  • Bharathi Cement Corporation - India
  • Barclays Capital - USA
  • Economic Council, Georgia
  • Petrosea - Indonesia
  • Globalindo Alam Lestari - Indonesia
  • Bulk Trading Sa - Switzerland
  • Glencore India Pvt. Ltd
  • Vedanta Resources Plc - India
  • Altura Mining Limited, Indonesia
  • Gresik Semen - Indonesia
  • India Bulls Power Limited - India
  • Price Waterhouse Coopers - Russia
  • Jindal Steel & Power Ltd - India
  • KOWEPO - South Korea
  • bp singapore
  • J M Baxi & Co - India
  • Coalindo Energy - Indonesia
  • Neyveli Lignite Corporation Ltd, - India
  • Port Waratah Coal Services - Australia
  • The India Cements Ltd
  • Edison Trading Spa - Italy
  • Binh Thuan Hamico - Vietnam
  • Ind-Barath Power Infra Limited - India
  • Electricity Generating Authority of Thailand
  • Malabar Cements Ltd - India
  • Coaltrans Conferences
  • Argus Media - Singapore
  • TNB Fuel Sdn Bhd - Malaysia
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Kapuas Tunggal Persada - Indonesia
  • Petron Corporation, Philippines
  • Directorate General of MIneral and Coal - Indonesia
  • Kideco Jaya Agung - Indonesia
  • AsiaOL BioFuels Corp., Philippines
  • Credit Suisse - India
  • Moodys - Singapore
  • Grasim Industreis Ltd - India
  • Uttam Galva Steels Limited - India
  • Rashtriya Ispat Nigam Limited - India
  • BNP Paribas - Singapore
  • PLN Batubara - Indonesia
  • Coal India Limited
  • Thai Mozambique Logistica
  • World Coal - UK
  • Thermax Limited - India
  • LBH Netherlands Bv - Netherlands
  • Bukit Asam (Persero) Tbk - Indonesia
  • Kumho Petrochemical, South Korea
  • Manunggal Multi Energi - Indonesia
  • Indian Oil Corporation Limited
  • Kaltim Prima Coal - Indonesia
  • Deloitte Consulting - India
  • The University of Queensland
  • Pendopo Energi Batubara - Indonesia
  • ICICI Bank Limited - India
  • Energy Link Ltd, New Zealand
  • Tanito Harum - Indonesia
  • Banpu Public Company Limited - Thailand
  • SUEK AG - Indonesia
  • Oldendorff Carriers - Singapore
  • Global Coal Blending Company Limited - Australia
  • Jorong Barutama Greston.PT - Indonesia
  • Cemex - Philippines
  • Singapore Mercantile Exchange
  • U S Energy Resources
  • KEPCO - South Korea
  • Surastha Cement
  • CNBM International Corporation - China
  • Mechel - Russia
  • Malco - India
  • GVK Power & Infra Limited - India
  • Riau Bara Harum - Indonesia
  • Shenhua Group - China
  • Deutsche Bank - India
  • Cardiff University - UK
  • ASAPP Information Group - India
  • Geoservices-GeoAssay Lab
  • globalCOAL - UK
  • Australian Coal Association
  • GAC Shipping (India) Pvt Ltd
  • Kartika Selabumi Mining - Indonesia
  • SRK Consulting
  • Videocon Industries ltd - India
  • Runge Indonesia
  • Planning Commission, India
  • Madhucon Powers Ltd - India
  • Sakthi Sugars Limited - India
  • Independent Power Producers Association of India
  • BRS Brokers - Singapore
  • Vizag Seaport Private Limited - India
  • New Zealand Coal & Carbon
  • The State Trading Corporation of India Ltd
  • Latin American Coal - Colombia
  • IHS Mccloskey Coal Group - USA
  • Petrochimia International Co. Ltd.- Taiwan
  • Sical Logistics Limited - India
  • Coeclerici Indonesia
  • Xindia Steels Limited - India
  • Straits Asia Resources Limited - Singapore
  • Bahari Cakrawala Sebuku - Indonesia
  • Noble Europe Ltd - UK
  • Indo Tambangraya Megah - Indonesia
  • Lafarge - France
  • Vijayanagar Sugar Pvt Ltd - India
  • Merrill Lynch Bank
  • GNFC Limited - India
  • Gujarat Sidhee Cement - India
  • Ernst & Young Pvt. Ltd.
  • Xstrata Coal
  • Inco-Indonesia
  • Bank of America
  • Parliament of New Zealand
  • Orica Australia Pty. Ltd.
  • CESC Limited - India
  • EMO - The Netherlands
  • San Jose City I Power Corp, Philippines
  • Qatrana Cement - Jordan
  • Mercator Lines Limited - India
  • World Bank
  • Carbofer General Trading SA - India
  • Energy Development Corp, Philippines
  • Interocean Group of Companies - India
  • Star Paper Mills Limited - India
  • Chamber of Mines of South Africa
  • ING Bank NV - Singapore
  • Pipit Mutiara Jaya. PT, Indonesia
  • TNPL - India
  • Krishnapatnam Port Company Ltd. - India
  • Maheswari Brothers Coal Limited - India
  • Indogreen Group - Indonesia
  • Coal Orbis AG
  • Agrawal Coal Company - India
  • Anglo American - United Kingdom
  • Aboitiz Power Corporation - Philippines
  • CIMB Investment Bank - Malaysia
  • Siam City Cement - Thailand
  • Karaikal Port Pvt Ltd - India
  • Thriveni
  • Thailand Anthracite
  • Antam Resourcindo - Indonesia
  • Kalimantan Lumbung Energi - Indonesia
  • Toyota Tsusho Corporation, Japan
  • Fearnleys - India
  • TANGEDCO India
  • Rudhra Energy - India
  • Indian School of Mines
  • UBS Singapore
  • International Coal Ventures Pvt Ltd - India
  • Larsen & Toubro Limited - India
  • Humpuss - Indonesia
  • Thomson Reuters GRC
  • Samtan Co., Ltd - South Korea
  • Mercuria Energy - Indonesia
  • Bukit Baiduri Energy - Indonesia
  • Bayan Resources Tbk. - Indonesia
  • Power Finance Corporation Ltd., India
  • Adani Power Ltd - India
  • PetroVietnam
  • Ministry of Mines - Canada
  • Salva Resources Pvt Ltd - India
  • Gujarat Mineral Development Corp Ltd - India
  • Panama Canal Authority
  • GHCL Limited - India
  • Sinarmas Energy and Mining - Indonesia
  • Bank of China, Malaysia
  • Alfred C Toepfer International GmbH - Germany
  • Semirara Mining and Power Corporation, Philippines
  • PTC India Limited - India
  • Global Business Power Corporation, Philippines
  • GB Group - China
  • Mintek Dendrill Indonesia
  • ETA - Dubai
  • Chettinad Cement Corporation Ltd - India
  • MEC Coal - Indonesia
  • Orica Mining Services - Indonesia
  • TGV SRAAC LIMITED, India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • WorleyParsons
  • Mitra SK Pvt Ltd - India
  • Britmindo - Indonesia
  • Wilmar Investment Holdings
  • Metalloyd Limited - United Kingdom
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • TRAFIGURA, South Korea
  • Core Mineral Indonesia
  • Central Java Power - Indonesia
  • Eastern Energy - Thailand
  • Baramulti Group, Indonesia
  • Barasentosa Lestari - Indonesia
  • Africa Commodities Group - South Africa
  • Bhatia International Limited - India
  • VISA Power Limited - India
  • Goldman Sachs - Singapore
  • Australian Commodity Traders Exchange
  • Central Electricity Authority - India
  • Merrill Lynch Commodities Europe
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Georgia Ports Authority, United States
  • Indonesian Coal Mining Association
  • Maersk Broker
  • Gupta Coal India Ltd
  • ANZ Bank - Australia
  • Makarim & Taira - Indonesia
  • OCBC - Singapore
  • Dalmia Cement Bharat India
  • Indorama - Singapore
  • South Luzon Thermal Energy Corporation
  • Clarksons - UK
  • PetroVietnam Power Coal Import and Supply Company
  • Formosa Plastics Group - Taiwan
  • London Commodity Brokers - England
  • Reliance Power - India
  • Attock Cement Pakistan Limited