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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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Sunday, 09 November 14
CAPE INDEX UP 3.06%; PANAMAX INDEX FELL 4.05%
COALspot.com: The BDI was almost at same levels compared to last week closing or just increased 0.77 pct from last week. The BDI was closed at 1437 ...
Friday, 07 November 14
U.S. PRODUCED 85.60 MILLION SHORT TONS OF COAL IN OCTOBER, UP 2.88% M-O-M
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.0 million short tons (mmst) of coal ...
Thursday, 06 November 14
THE ATLANTIC HAS REMAINED STRONG WITH A HEALTHY SUPPLY OF NEW CARGOES
Handy
This week has continued its slow trend in both hemispheres and even though rates are a bit up w-o-w it is not a clear sign for any improvem ...
Wednesday, 05 November 14
CAPESIZE SEGMENT ENJOYED FIRMING RATES ACROSS BOTH BASINS
Following a fantastic week in terms of rate performance for Capes, the Dry Bulk market managed to note another positive weekly closing, which stron ...
Wednesday, 05 November 14
SHIPPING MARKET INSIGHT - PANOS TSILINGIRIS
COALspot.com: The steep appreciation in dry bulker values between late 2012 and March 2014 resulted in unrealistically expensive ship values compar ...
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- Salva Resources Pvt Ltd - India
- Trasteel International SA, Italy
- Africa Commodities Group - South Africa
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- ASAPP Information Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- Heidelberg Cement - Germany
- Meralco Power Generation, Philippines
- Savvy Resources Ltd - HongKong
- Coastal Gujarat Power Limited - India
- Petron Corporation, Philippines
- Marubeni Corporation - India
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Miang Besar Coal Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- Ministry of Mines - Canada
- Mjunction Services Limited - India
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- The University of Queensland
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Central Java Power - Indonesia
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indian Energy Exchange, India
- OPG Power Generation Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Commonwealth Bank - Australia
- Goldman Sachs - Singapore
- Formosa Plastics Group - Taiwan
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- The Treasury - Australian Government
- Posco Energy - South Korea
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Kepco SPC Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining and Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Price Waterhouse Coopers - Russia
- Orica Mining Services - Indonesia
- Carbofer General Trading SA - India
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- Deloitte Consulting - India
- Malabar Cements Ltd - India
- Central Electricity Authority - India
- San Jose City I Power Corp, Philippines
- Indian Oil Corporation Limited
- Power Finance Corporation Ltd., India
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- Mercuria Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Medco Energi Mining Internasional
- Essar Steel Hazira Ltd - India
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Bulk Trading Sa - Switzerland
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- Bhatia International Limited - India
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Maheswari Brothers Coal Limited - India
- Indo Tambangraya Megah - Indonesia
- Baramulti Group, Indonesia
- London Commodity Brokers - England
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- IEA Clean Coal Centre - UK
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- Timah Investasi Mineral - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- PowerSource Philippines DevCo
- Electricity Authority, New Zealand
- Eastern Coal Council - USA
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Attock Cement Pakistan Limited
- Krishnapatnam Port Company Ltd. - India
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Kumho Petrochemical, South Korea
- Energy Link Ltd, New Zealand
- South Luzon Thermal Energy Corporation
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Mercator Lines Limited - India
- Vedanta Resources Plc - India
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- Orica Australia Pty. Ltd.
- Economic Council, Georgia
- Oldendorff Carriers - Singapore
- Leighton Contractors Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Jindal Steel & Power Ltd - India
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Global Green Power PLC Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Bhushan Steel Limited - India
- White Energy Company Limited
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- Standard Chartered Bank - UAE
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Asmin Koalindo Tuhup - Indonesia
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- Merrill Lynch Commodities Europe
- Tamil Nadu electricity Board
- Sical Logistics Limited - India
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Global Business Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Cigading International Bulk Terminal - Indonesia
- Australian Coal Association
- Siam City Cement PLC, Thailand
- Ministry of Transport, Egypt
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Eastern Energy - Thailand
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Romanian Commodities Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
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