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Thursday, 08 May 14
'TRIAL BY MEDIA, TRIAL BY LAW' - A REPORT FROM TRACK 1 OF BIMCO'S ANNUAL CONFERENCE DUBAI 2014
 KNOWLEDGE TO ELEVATE
Aiming to bring a very different type of event into their annual conference, BIMCO presented ‘Double Jeopardy – ‘Trial by Media, Trial by Law*’, simulating a marine casualty and arbitration to delegates at the Jumeirah Beach Hotel, Dubai. A professional, innovative and creative production not only gave a realistic portrayal of the events following a maritime casualty but enabled the audience to participate with well posed questions by way of interactive voting meters.
Based on a true event, this realistic account of a maritime casualty was narrated by Lindsay East, Consultant, Reed Smith, London. The vessel ‘Idle Star’ having loaded with sugar in Thailand and heading to the discharge port, had grounded on a river bed on the West Coast of California in an area of natural beauty. While there were no human casualties, there was a significant bunker spill and with a fast flowing river the environmental implications to wildlife and the local community were huge.
As the story unfolded, the owner representative, played by John Tsatsas from London and the charterers representative played by Han van Blanken from Rotterdam, portrayed each stage from the initial Captain’s call. With the initial limited information, the chain of events were shown to unfold as the owner and charterer brought in assistance and sought advice from P&I, lawyers, classification society, hull and machinery insurers, local agents and representatives and demonstrated how the process evolved as more information became available, giving an overview of the practicalities involved in the process. The expert advice to the owner and charterer was provided by video clips of real practitioners in conversation with the two stage actors.
The casualty centred on whether the destination port was ‘safe’. It was known to have a low draft and underwater obstructions that shifted and were uncharted. The vessel therefore had to not only be of certain specification when laden but also the conditions of making the final part of the voyage through those water needed to be assessed with the latest information available to see if the port was suitable for discharge. The owners proceeded to complete the voyage and the vessel ran aground so who was liable? The Master for proceeding with the voyage despite concerns or the charterer for the choice of a difficult destination with the cargo in mind?
With neither the owner or charterer accepting liability and indeed blaming each other, this session focussed on two areas; media and how if not handled correctly incidents can become a media and public relations nightmare and legal arbitration, examining the legalities of the charter agreement and how this would be dealt with by the legal system.
The morning session focussed on ‘Trial by Media’ and with neither party having any crisis management or PR in place, the simulated public backlash of the environmentalists, shrimp farmers and the local community as pollution grew, quickly escalated without an appropriate, measured response. Julian Bray, Tradewinds Editor-in-chief portrayed the media, keen for a story, blame and clearly supporting the affected parties who were keen for compensation.
The clear message of the morning session was that handling media during such an incident is a serious matter and can easily spiral out of control. Media will always seek to sensationalise and exploit sensitive areas and it is very easy to say the wrong things however well intentioned. Advice was to be well prepared, seeking professional crisis management to enable you to get every step right and above all, be honest. By knowing the all facts, you can provide just enough factual information and slow the media frenzy down.
The afternoon session ‘Trial by Law’ consisted of a panel of three maritime arbitrators, presided by Jude Benny, from Singapore, Bruce Harris from London and Jack Warfield from New York.
The owner sought indemnity from the charterer and the case was to ascertain whether the port was unsafe, whether the charterer was in breach of the agreement by ordering the ship to go there and whether that caused the loss.
Chirag Karia, a QC from London, counsel for the owner, put forward a strong case after witness testimonies that the owner had expressed concerns to the charterer which has gone unresolved. There had been correspondence regarding the draft of the port and that the waters were uncharted and the charterer had been asked to arrange lightening and/or a harmless agreement to indemnify the owner from any losses should there be a problem. The charterer did not lighten and was confident there would be no issue with the voyage, however did not confirm any harmless agreement which the owner assumed from their conversations. He argued that by sending the vessel to its destination the charterers were sending the vessel to an unsafe port and the owners had been commercially pressured to continue.
Nevil Phillips a barrister from London, counsel for the charterer, argued the defence with regard to whether the port was safe at the time of nomination and that the owners had a responsibility to ensure the vessel was laden appropriately to ensure safe passage. The owners should have reduced the cargo and taken further action to avoid such an incident and the Master was negligent in not doing so, causing the vessel to ground. Ultimately it was the owner’s decision to continue with the voyage with the known risks and any negligence by the Master obliterates any question of safety.
The arbitrators retired to consider their findings, each from the perspective of their own jurisdictions, and the audience were able to vote on their own judgment, finding in favour of the owner. However on returning the arbitrators, giving three separate judgments found in favour of the charterer by two to one on the basis that the grounding was found to be in general down to the Master’s negligence. Jude Benny summing up said “There were sufficient red light warnings and with good seamanship this could have been avoided.”
There was a lively question and answer session to close the session and attendees found the day both enlightening and informative. The new style of interactive session proved popular with attendees and the final vote was to definitely repeat such an event next time.
Source: BIMCO / Hellenic Shipping
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Tuesday, 08 April 14
PORT OF NEWCASTLE SHIPPED 2.90 MMT OF POWER PLANT AND SEMI-SOFT COKING COAL IN A WEEK
COALspot.com: In the week ended 07:00 hours 7 April 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensla ...
Tuesday, 08 April 14
RBCT SHIPPED 53.79% MORE COAL IN MARCH 2014
COALspot.com: South Africa's Richards Bay Coal Terminal (RBCT) the single largest export coal terminal in the world, shipped 6.90 million to ...
Tuesday, 08 April 14
APRIL 2014 INDONESIAN COAL PRICE REFERENCE DROPS TO LOWEST SINCE JANUARY 2010
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has revised down again the coal bench mark price by US$ 2.20 / MT to ...
Tuesday, 08 April 14
TALKING ABOUT A ONE-HORSE RACE - GEORGE LAZARIDIS
Ever since the onslaught of the financial crisis, China along with the other BRIICs, have played a pivotal role in supporting global economic gr ...
Monday, 07 April 14
WEEKLY SUB-BIT FOB INDONESIA COAL SWAP CLAIMS EDGE FALL; TREND NEGATIVE
COALspot.com: Indonesian coal swaps for average Q4’ 2014 lost on month, day and on week according to AsiaClear OTC coal swap's reports ...
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- Gujarat Mineral Development Corp Ltd - India
- Parliament of New Zealand
- Semirara Mining and Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Bharathi Cement Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Indian Energy Exchange, India
- Central Electricity Authority - India
- ASAPP Information Group - India
- Rio Tinto Coal - Australia
- Simpson Spence & Young - Indonesia
- Sakthi Sugars Limited - India
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Banpu Public Company Limited - Thailand
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Meenaskhi Energy Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- The University of Queensland
- Electricity Authority, New Zealand
- Chamber of Mines of South Africa
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- PowerSource Philippines DevCo
- Bhushan Steel Limited - India
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- White Energy Company Limited
- Leighton Contractors Pty Ltd - Australia
- Parry Sugars Refinery, India
- Trasteel International SA, Italy
- Alfred C Toepfer International GmbH - Germany
- TeaM Sual Corporation - Philippines
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Borneo Indobara - Indonesia
- Antam Resourcindo - Indonesia
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bukit Makmur.PT - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- International Coal Ventures Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- Latin American Coal - Colombia
- Bahari Cakrawala Sebuku - Indonesia
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Energy Development Corp, Philippines
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Kartika Selabumi Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- Merrill Lynch Commodities Europe
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Ministry of Finance - Indonesia
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- Australian Commodity Traders Exchange
- Mercator Lines Limited - India
- Indo Tambangraya Megah - Indonesia
- Jaiprakash Power Ventures ltd
- Makarim & Taira - Indonesia
- Commonwealth Bank - Australia
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- Bhoruka Overseas - Indonesia
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Samtan Co., Ltd - South Korea
- GMR Energy Limited - India
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sarangani Energy Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Energy Link Ltd, New Zealand
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- Videocon Industries ltd - India
- Tata Chemicals Ltd - India
- Goldman Sachs - Singapore
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- Orica Australia Pty. Ltd.
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Anglo American - United Kingdom
- Medco Energi Mining Internasional
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Dalmia Cement Bharat India
- Attock Cement Pakistan Limited
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- Georgia Ports Authority, United States
- New Zealand Coal & Carbon
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Port Waratah Coal Services - Australia
- McConnell Dowell - Australia
- Coal and Oil Company - UAE
- MS Steel International - UAE
- Directorate Of Revenue Intelligence - India
- Deloitte Consulting - India
- Bukit Asam (Persero) Tbk - Indonesia
- Interocean Group of Companies - India
- Oldendorff Carriers - Singapore
- The State Trading Corporation of India Ltd
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Manunggal Multi Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Bhatia International Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ambuja Cements Ltd - India
- Aditya Birla Group - India
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Kumho Petrochemical, South Korea
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Standard Chartered Bank - UAE
- Asmin Koalindo Tuhup - Indonesia
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Indonesian Coal Mining Association
- San Jose City I Power Corp, Philippines
- Marubeni Corporation - India
- CNBM International Corporation - China
- Australian Coal Association
- Orica Mining Services - Indonesia
- Global Coal Blending Company Limited - Australia
- PTC India Limited - India
- Straits Asia Resources Limited - Singapore
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