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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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Friday, 14 November 14
U.S. WEEKLY COAL OUTPUT SLIPS SLIGHTLY WEEK ENDING NOVEMBER 08
COALspot.com – United States the world's one of the largest coal producers, produced approximately 18.9 million short tons (mmst) of coal ...
Friday, 14 November 14
MORE NATURAL GAS FROM RUSSIA TO HELP STABILISE CHINA PRICES - FITCH RATINGS
COALspot.com: Fitch Ratings has said possible additional natural gas supplies from Russia's OAO Gazprom to China via the Altai pipeline would h ...
Thursday, 13 November 14
SLOWER AND LOWER HAS BEEN THE TREND OF THE PANAMAX IN BOTH HEMISPHERES - FEARNLEYS
Handy
We are experiencing an oversupply of tonnage in the Atlantic which is out numbering the amount of cargoes, Fearnleys broker says in its lat ...
Thursday, 13 November 14
DRY BULK MARKET'S REBOUND HINGES ON IRON ORE OVERSUPPLY ISSUES MOVING FORWARD - HELLENIC SHIPPING NEWS
“One man’s benefit, is another man’s demise” is a phrase which can be used to describe today’s situation in the dry b ...
Thursday, 13 November 14
COAL MINISTER WANTS INDIA TO STOP COAL IMPORTS IN TWO OR THREE YEARS
COALspot.com: India to ramp up coal production to a billion tonnes by 2019 from its current level of 490 million tones. According to Power and Coal ...
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- Kalimantan Lumbung Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Electricity Authority, New Zealand
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Meralco Power Generation, Philippines
- Uttam Galva Steels Limited - India
- San Jose City I Power Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Borneo Indobara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Marubeni Corporation - India
- Vedanta Resources Plc - India
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Kaltim Prima Coal - Indonesia
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Jorong Barutama Greston.PT - Indonesia
- SMG Consultants - Indonesia
- Metalloyd Limited - United Kingdom
- PTC India Limited - India
- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Planning Commission, India
- Interocean Group of Companies - India
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Videocon Industries ltd - India
- MS Steel International - UAE
- Anglo American - United Kingdom
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Posco Energy - South Korea
- Eastern Energy - Thailand
- Xindia Steels Limited - India
- Lanco Infratech Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- Indika Energy - Indonesia
- Minerals Council of Australia
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- GMR Energy Limited - India
- Eastern Coal Council - USA
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Thiess Contractors Indonesia
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Petron Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
- Samtan Co., Ltd - South Korea
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Bulk Trading Sa - Switzerland
- Agrawal Coal Company - India
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- International Coal Ventures Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Malabar Cements Ltd - India
- Ambuja Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Global Green Power PLC Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Oldendorff Carriers - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- PowerSource Philippines DevCo
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Australian Commodity Traders Exchange
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Transport, Egypt
- Energy Link Ltd, New Zealand
- CIMB Investment Bank - Malaysia
- Orica Mining Services - Indonesia
- Renaissance Capital - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- ASAPP Information Group - India
- Wilmar Investment Holdings
- Sree Jayajothi Cements Limited - India
- Bhatia International Limited - India
- Chettinad Cement Corporation Ltd - India
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Singapore Mercantile Exchange
- Wood Mackenzie - Singapore
- Grasim Industreis Ltd - India
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- Makarim & Taira - Indonesia
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- TNB Fuel Sdn Bhd - Malaysia
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Bharathi Cement Corporation - India
- Timah Investasi Mineral - Indoneisa
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Power Finance Corporation Ltd., India
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Coalindo Energy - Indonesia
- Georgia Ports Authority, United States
- The University of Queensland
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Indian Oil Corporation Limited
- Ceylon Electricity Board - Sri Lanka
- Kobexindo Tractors - Indoneisa
- Barasentosa Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Tata Chemicals Ltd - India
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Semirara Mining and Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Port Waratah Coal Services - Australia
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
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