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Wednesday, 15 October 14
SHIPOWNER NOT LIABLE FOR CARGO DAMAGE RESULTING FROM POOR STOWAGE - CLYDE & CO
 KNOWLEDGE TO ELEVATE
Russian metal trading company Yuzhny Zavod Metall Profil (YZMP), the holder of a CONGEN 1994 bill of lading, took delivery of 411 coils of steel sheets at Novorossiysk, Russia, all with varying degrees of damage. YZMP decided to claim under the bill of lading against the owner, Eems Beheerder B.V., as carrier under the bill of lading. YZMP maintained that the owner was in breach of Article III Rule 2 of the Hague Rules 1924 (incorporated into the bill of lading) whereby the owner is required to “properly and carefully load, carry and discharge the goods”.
It was the owner’s defence that the Gencon 1994 charterparty was incorporated into the bill of lading. Crucially, the charterparty contained an Owners’ Responsibility clause and a Loading and Discharging clause which stated that the cargo was to be loaded “by the Charterers, free of any risk, liability or expense whatsoever” and owners were only to be liable for “want of due diligence.”
Facts
Charterers appointed stevedores at load port to load the cargo but their failure to use locking coils meant the stow was not appropriate. The Master was not satisfied with stowage but decided to sail regardless
During the voyage, the vessel experienced heavy weather which led to a strap breaking and a shift in the cargo; the crew were unable to secure the shifted cargo for lack of additional lashing straps, resulting in damage to a number of coils.
The key question was who was responsible for the shifting:
Stevedores: in failing to load and stow the cargo safely and correctly; or
Owners: in failing to provide the necessary lashings, equipment and/or crew
Decision
The judge concluded that the sole effective cause of damage to the cargo was the vessel not being properly loaded and stowed when she left the port. Locking coils were not used appropriately, and the lashing was not systematic. On a true construction of the bill of lading, owners were not responsible for stowage because the charterparty was incorporated into the bill of lading, and the terms of the charterparty made it clear that owners were not responsible for improper stowage. The Judge noted:
“Where the responsibility for the stowage has been contractually passed from the shipowner to the charterer (or the cargo owner) the shipowner will not be liable for damage arising from improper stowage even if it renders the vessel unseaworthy unless it is established that the bad stowage leading to the damage arose from a significant intervention by the shipowners or their master”.
The Judge also found that there was no basis for the contention that the ship should have carried additional lashings on board, and the failure to do so did not render the vessel unseaworthy or uncargoworthy.
Comment
This case illustrates the protection afforded to owners by the incorporation of charterparty clauses into the bill of lading. The “EEMS SOLAR” goes beyond the “JORDAN II” by protecting owners even where the incorporated charterparty does not refer to the “Shipper”, “Receiver” or “Consignee.”
The decision also raises a number of questions that may cause difficulties in future cases. For example, where the bill of lading is in the hands of a third party receiver, it raises the possibility of indemnity proceedings against charterers (as being the party responsible for the stowage). Such claims could be very significant where, for example, stowage issues resulted in the loss of vessel and cargo. In all cases of this type the evidence and contractual provisions relating to the appointment of stevedores will remain a key issue and, very likely, a significant area of dispute.
Source: Clyde & Co. / Hellenic Shipping
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Tuesday, 02 December 14
U.S WEEKLY COAL PRODUCTION FELL 1.4% WEEK ON WEEK - EIA
COALspot.com – United States the world's one of the largest coal producers, produced approximately 18.6 million short tons (mmst) o ...
Tuesday, 02 December 14
FOB RICHARDS BAY COAL SWAPS LOST MONTH OVER MONTH
COALspot.com: API 4 FOB Richards Bay Coal for delivery Q1' 2015 lost month on month, week on week and day over day.
The Q1 swap has lost U ...
Tuesday, 02 December 14
SUB-BIT FOB INDONESIA COAL Q1' 15 DELIVERY SWAP CLOSED AT US$ 49.50
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month, week over week and day on day.
The Q1 swap has lost US$ 0.4 ...
Monday, 01 December 14
SGX'S FOB NEWCASTLE COAL SWAP FOR Q1' 2015 DELIVERY CLOSED AT US$ 52.50
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery closed at US$ 52.50 on 28 November after losing US$ 1.20 (-2.23%) month ove ...
Monday, 01 December 14
Q2' 15 DELIVERY CFR SOUTH CHINA COAL SWAP CLOSED 0.42% LOWER THAN Q1' 15 DELIVERY CLOSING
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery has decreased US$ 2.45 (-3.78%) month over month and US$ 0.67 (-1.06%) we ...
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- Bukit Makmur.PT - Indonesia
- Baramulti Group, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Sree Jayajothi Cements Limited - India
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
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- The Treasury - Australian Government
- Gujarat Mineral Development Corp Ltd - India
- Indian Energy Exchange, India
- Planning Commission, India
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- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- PowerSource Philippines DevCo
- Australian Coal Association
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Marubeni Corporation - India
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- TeaM Sual Corporation - Philippines
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Africa Commodities Group - South Africa
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- Thai Mozambique Logistica
- SMG Consultants - Indonesia
- Sical Logistics Limited - India
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- Energy Development Corp, Philippines
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Chettinad Cement Corporation Ltd - India
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Siam City Cement - Thailand
- Mercator Lines Limited - India
- Maharashtra Electricity Regulatory Commission - India
- CNBM International Corporation - China
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Therma Luzon, Inc, Philippines
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- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
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- Barasentosa Lestari - Indonesia
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- Petron Corporation, Philippines
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- Star Paper Mills Limited - India
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- SN Aboitiz Power Inc, Philippines
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- Dalmia Cement Bharat India
- Makarim & Taira - Indonesia
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Global Business Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Indika Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- Banpu Public Company Limited - Thailand
- Parry Sugars Refinery, India
- Goldman Sachs - Singapore
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- Antam Resourcindo - Indonesia
- Standard Chartered Bank - UAE
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Kapuas Tunggal Persada - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Ministry of Transport, Egypt
- Deloitte Consulting - India
- Karaikal Port Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Finance - Indonesia
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- Kalimantan Lumbung Energi - Indonesia
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- Siam City Cement PLC, Thailand
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- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- Bharathi Cement Corporation - India
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
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