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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, 15 October 14
NEWCASTLE SHIPPED 13.96 MILLION TONS OF COAL IN SEPTEMBER; UP 5.72%
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port, has shipped $1,227.7 wor ...
Tuesday, 14 October 14
KING COAL UNDER ATTACK? - EVA TZIMA
With the last quarter of the year being well underway and with no strong signs that the Dry Bulk market could be ready for a big positive reversal, ...
Tuesday, 14 October 14
THE NEW CHINESE TRANSPORTATION TAX LAW: WHAT DOES IT MEAN FOR GREEK SHIPPING? - DELOITTE
China has recently promulgated a new law which imposes tax on profits from freights of inbound routes. The objective of the new tax law titled &ldq ...
Monday, 13 October 14
CHINESE COAL IMPORT TARIFFS YET ANOTHER BLOW TO AUSTRALIAN COAL EXPORTS - TIM BUCKLEY
COALspot.com: China’s unexpected move to reintroduce thermal coal import tariffs of 6% will have a materially negative impact on the viabilit ...
Monday, 13 October 14
NEWCASTLE COAL SWAP FOR Q1' 2015 DELIVERY CLOSED AT US$ 54.92, SGX DATA SHOWS
COALspot.com: API 5 FOB Newcastle Coal swap for delivery Q4' 2014 decreased US$ 0.80 (-1.46%) month over month and US$ 0.52 (-0.95%) week over ...
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- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Energy Link Ltd, New Zealand
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- New Zealand Coal & Carbon
- AsiaOL BioFuels Corp., Philippines
- PTC India Limited - India
- Borneo Indobara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Marubeni Corporation - India
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- International Coal Ventures Pvt Ltd - India
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Singapore Mercantile Exchange
- Parliament of New Zealand
- Intertek Mineral Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- The University of Queensland
- Meralco Power Generation, Philippines
- Independent Power Producers Association of India
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Coalindo Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Orica Australia Pty. Ltd.
- Indian Energy Exchange, India
- Medco Energi Mining Internasional
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Aboitiz Power Corporation - Philippines
- ASAPP Information Group - India
- Economic Council, Georgia
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- OPG Power Generation Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Videocon Industries ltd - India
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- VISA Power Limited - India
- Sarangani Energy Corporation, Philippines
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Malabar Cements Ltd - India
- Indonesian Coal Mining Association
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- Jorong Barutama Greston.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Edison Trading Spa - Italy
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Kartika Selabumi Mining - Indonesia
- White Energy Company Limited
- Indika Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- Petron Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Simpson Spence & Young - Indonesia
- Madhucon Powers Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Energy Development Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Kumho Petrochemical, South Korea
- GAC Shipping (India) Pvt Ltd
- Straits Asia Resources Limited - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Carbofer General Trading SA - India
- Leighton Contractors Pty Ltd - Australia
- London Commodity Brokers - England
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Wood Mackenzie - Singapore
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Star Paper Mills Limited - India
- Baramulti Group, Indonesia
- Xindia Steels Limited - India
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Semirara Mining and Power Corporation, Philippines
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Minerals Council of Australia
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Oldendorff Carriers - Singapore
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Planning Commission, India
- Maharashtra Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Coastal Gujarat Power Limited - India
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Ministry of Mines - Canada
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Grasim Industreis Ltd - India
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Interocean Group of Companies - India
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
- Heidelberg Cement - Germany
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
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