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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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Monday, 13 October 14
INDONESIAN COAL SWAPS FOR DELIVERY Q4' 2014 GAINED WEEK ON WEEK AND DAY ON DAY
COALspot.com: Indonesian coal swaps for delivery Q4' 2014 gained week on week and day on day.
The swap lost US$ 0.13 (-0.25%) month on mon ...
Monday, 13 October 14
Q1' 2015 CFR SOUTH CHINA COAL SWAP CLOSED US$ 0.31 PMT HIGHER THAN Q4' 2014 CLOSING
COALspot.com: API 8 CFR South China Coal swap for Q4’ 2014 delivery decreased US$ 0.66 (-1.00%) month over month and US$ 0.40 (-0.61%) ...
Sunday, 12 October 14
INDONESIA TO INDIA FREIGHT RATES ARE EXPECTED TO BE WEAK - VISTAAR
COALspot.com: This week all the segments softened. The BDI down 7.13 pct week on week and closed below 1000 points at 963 points.
The Cape ind ...
Saturday, 11 October 14
COAL PRODUCTION RISES ONLY SLIGHTLY AS GOVT LIMITS MINING OPERATIONS - THE JAKARTA POST
Indonesian coal production rose by only 4 percent in the first nine months of this year, a relatively low increase compared to previous years, as t ...
Friday, 10 October 14
INDONESIA TO DEVELOP DOWNSTREAM COAL INDUSTRY - JP
The government is planning to launch a program to develop the downstream coal industry to increase the commodity’s added value, an official h ...
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- Mercator Lines Limited - India
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Sojitz Corporation - Japan
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maheswari Brothers Coal Limited - India
- Banpu Public Company Limited - Thailand
- Port Waratah Coal Services - Australia
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Asmin Koalindo Tuhup - Indonesia
- Minerals Council of Australia
- Maharashtra Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Savvy Resources Ltd - HongKong
- Xindia Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- GVK Power & Infra Limited - India
- Altura Mining Limited, Indonesia
- Ambuja Cements Ltd - India
- Antam Resourcindo - Indonesia
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- Sical Logistics Limited - India
- Medco Energi Mining Internasional
- Kalimantan Lumbung Energi - Indonesia
- Indika Energy - Indonesia
- Posco Energy - South Korea
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- Lanco Infratech Ltd - India
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
- Mercuria Energy - Indonesia
- Heidelberg Cement - Germany
- GAC Shipping (India) Pvt Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Rio Tinto Coal - Australia
- CIMB Investment Bank - Malaysia
- Renaissance Capital - South Africa
- Bhatia International Limited - India
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- Pendopo Energi Batubara - Indonesia
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- Indian Energy Exchange, India
- Economic Council, Georgia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Australian Coal Association
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- VISA Power Limited - India
- Trasteel International SA, Italy
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- White Energy Company Limited
- Timah Investasi Mineral - Indoneisa
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Meralco Power Generation, Philippines
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- TeaM Sual Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- Kartika Selabumi Mining - Indonesia
- Latin American Coal - Colombia
- Wilmar Investment Holdings
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- New Zealand Coal & Carbon
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- India Bulls Power Limited - India
- Africa Commodities Group - South Africa
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Iligan Light & Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- MS Steel International - UAE
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Georgia Ports Authority, United States
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Power Finance Corporation Ltd., India
- PowerSource Philippines DevCo
- Siam City Cement - Thailand
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- Global Business Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Anglo American - United Kingdom
- Marubeni Corporation - India
- Central Electricity Authority - India
- Gujarat Mineral Development Corp Ltd - India
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Planning Commission, India
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- The University of Queensland
- London Commodity Brokers - England
- ICICI Bank Limited - India
- Eastern Coal Council - USA
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Videocon Industries ltd - India
- Romanian Commodities Exchange
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- European Bulk Services B.V. - Netherlands
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