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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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Wednesday, 19 November 14
SHIPPING MARKET INSIGHT - BY KATERINA RESTIS
The current Ebola outbreak in West Africa has been declared as a worldwide health emergency by the World Health Organization and has had a great im ...
Tuesday, 18 November 14
VALEMAX DEAL TO DETERMINE DRY BULK MARKET'S FATE - DREWRY MARITIME RESEARCH
Vale’s accord to sell and lease four Valemax vessels to COSCO might have negative repercussions on dry bulk freight rates. Vale has committed ...
Tuesday, 18 November 14
SUB-BIT FOB INDONESIA COAL SWAP DELIVERY Q2' 2015 CLOSED AT $ 49.55; DOWN 4.10% M-O-M
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month, gained week on week and day on day.
The Q1 swap has lost US ...
Tuesday, 18 November 14
FOB RICHARDS BAY COAL SWAP FOR Q1' 2015 DELIVERY CLOSED AT $ 66.31; UP 1.33% W-O-W
COALspot.com: API 4 FOB Richards Bay Coal swap for Q1’ 2015 delivery has gained US$ 0.27 (+0.41%) month over month and US$ 0.87 (+1.33%) week ...
Tuesday, 18 November 14
CHEAP OIL PRICES COULD RESHAPE GLOBAL OIL EXPORTING MAP - HELLENIC SHIPPING
Tanker owners have enjoyed a rather healthy 2014, but as the year draws to a close, the fall of oil prices is bound to reshape traditional, as well ...
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- Vedanta Resources Plc - India
- The State Trading Corporation of India Ltd
- Thai Mozambique Logistica
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- Interocean Group of Companies - India
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Bhushan Steel Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bharathi Cement Corporation - India
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Petron Corporation, Philippines
- Coalindo Energy - Indonesia
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- SMG Consultants - Indonesia
- Lanco Infratech Ltd - India
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Commonwealth Bank - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Siam City Cement PLC, Thailand
- Kohat Cement Company Ltd. - Pakistan
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Jorong Barutama Greston.PT - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Energy Development Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Xindia Steels Limited - India
- Ministry of Transport, Egypt
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Deloitte Consulting - India
- Vizag Seaport Private Limited - India
- VISA Power Limited - India
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- GMR Energy Limited - India
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- Petrochimia International Co. Ltd.- Taiwan
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Attock Cement Pakistan Limited
- Bayan Resources Tbk. - Indonesia
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Kumho Petrochemical, South Korea
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Indian Energy Exchange, India
- Marubeni Corporation - India
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- Semirara Mining and Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Minerals Council of Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- Heidelberg Cement - Germany
- Baramulti Group, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Edison Trading Spa - Italy
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- Siam City Cement - Thailand
- Ministry of Finance - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- Australian Coal Association
- MS Steel International - UAE
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Bhatia International Limited - India
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Kideco Jaya Agung - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Parry Sugars Refinery, India
- European Bulk Services B.V. - Netherlands
- Ministry of Mines - Canada
- Directorate Of Revenue Intelligence - India
- The University of Queensland
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Mintek Dendrill Indonesia
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- Madhucon Powers Ltd - India
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Chamber of Mines of South Africa
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- Planning Commission, India
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- TeaM Sual Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Gujarat Sidhee Cement - India
- Trasteel International SA, Italy
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Riau Bara Harum - Indonesia
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- Wilmar Investment Holdings
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- Karaikal Port Pvt Ltd - India
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
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