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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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Thursday, 20 November 14
MOST MAJOR ASIAN ECONOMIES TO BENEFIT FROM LOWER OIL - FITCH
COALspot.com: The 25% drop in the price of oil since July is likely to lift economic growth prospects, improve terms of trade, and have a pot ...
Thursday, 20 November 14
HANDY: INDO ROUNDS ARE BEING FIXED IN REGION OF US$ 10K - FEARNLEYS
Handy
In the Atlantic we have experienced firmer rates this week much lead by the grain activity out of USG. Vsls open in the USG can achieve in ...
Thursday, 20 November 14
DEMAND FOR DRY BULK CARRIERS INCREASES ON THE BACK OF HEIGHTENED FREIGHT RATE MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Ship owners are looking to take advantage of favorable market conditions through the acquisition of more dry bulk carriers. According to shipbroker ...
Wednesday, 19 November 14
INDONESIA FUEL-PRICE RISE A CLEAR, POSITIVE REFORM SIGNAL - FITCH
COALspot.com: Indonesia's hike of more than 30% in administered fuel prices, announced on 17 November, provides a clear, positive signal of the ...
Wednesday, 19 November 14
CAPES WERE UNDER PRESSURE; LOST 20% WITHIN A WEEK
COALspot.com: " The negative environment in which the week prior ended, marked this past week as well, which closed off on Friday noting the f ...
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- Sakthi Sugars Limited - India
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Ministry of Mines - Canada
- Semirara Mining and Power Corporation, Philippines
- Interocean Group of Companies - India
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- GN Power Mariveles Coal Plant, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Independent Power Producers Association of India
- Mercator Lines Limited - India
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Electricity Generating Authority of Thailand
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Posco Energy - South Korea
- Carbofer General Trading SA - India
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- PetroVietnam Power Coal Import and Supply Company
- Bhoruka Overseas - Indonesia
- ICICI Bank Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Mjunction Services Limited - India
- IEA Clean Coal Centre - UK
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Alfred C Toepfer International GmbH - Germany
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Agrawal Coal Company - India
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Bukit Baiduri Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Anglo American - United Kingdom
- SMG Consultants - Indonesia
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- ASAPP Information Group - India
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Asmin Koalindo Tuhup - Indonesia
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Aboitiz Power Corporation - Philippines
- VISA Power Limited - India
- Coalindo Energy - Indonesia
- Antam Resourcindo - Indonesia
- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- San Jose City I Power Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- PNOC Exploration Corporation - Philippines
- Malabar Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- CIMB Investment Bank - Malaysia
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- European Bulk Services B.V. - Netherlands
- Global Green Power PLC Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Latin American Coal - Colombia
- Xindia Steels Limited - India
- Deloitte Consulting - India
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Electricity Authority, New Zealand
- GMR Energy Limited - India
- Straits Asia Resources Limited - Singapore
- Manunggal Multi Energi - Indonesia
- Wood Mackenzie - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- AsiaOL BioFuels Corp., Philippines
- Thiess Contractors Indonesia
- Central Electricity Authority - India
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- Samtan Co., Ltd - South Korea
- The University of Queensland
- Borneo Indobara - Indonesia
- Orica Australia Pty. Ltd.
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Commonwealth Bank - Australia
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Commodity Traders Exchange
- Directorate General of MIneral and Coal - Indonesia
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- Baramulti Group, Indonesia
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Australian Coal Association
- Bhushan Steel Limited - India
- Lanco Infratech Ltd - India
- Minerals Council of Australia
- Medco Energi Mining Internasional
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- South Luzon Thermal Energy Corporation
- Vijayanagar Sugar Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bharathi Cement Corporation - India
- Price Waterhouse Coopers - Russia
- Kapuas Tunggal Persada - Indonesia
- Coal and Oil Company - UAE
- Economic Council, Georgia
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