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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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- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Karaikal Port Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Larsen & Toubro Limited - India
- San Jose City I Power Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Global Business Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Parliament of New Zealand
- Commonwealth Bank - Australia
- Eastern Energy - Thailand
- Oldendorff Carriers - Singapore
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Australian Coal Association
- Sical Logistics Limited - India
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- Heidelberg Cement - Germany
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Gujarat Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- Tata Chemicals Ltd - India
- Coal and Oil Company - UAE
- Posco Energy - South Korea
- ICICI Bank Limited - India
- Intertek Mineral Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- Samtan Co., Ltd - South Korea
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Georgia Ports Authority, United States
- Neyveli Lignite Corporation Ltd, - India
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Star Paper Mills Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Marubeni Corporation - India
- Renaissance Capital - South Africa
- LBH Netherlands Bv - Netherlands
- Goldman Sachs - Singapore
- Semirara Mining and Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- London Commodity Brokers - England
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Metalloyd Limited - United Kingdom
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Sindya Power Generating Company Private Ltd
- Savvy Resources Ltd - HongKong
- PTC India Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Coastal Gujarat Power Limited - India
- Vedanta Resources Plc - India
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Transport, Egypt
- Planning Commission, India
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Sarangani Energy Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Jaiprakash Power Ventures ltd
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- ASAPP Information Group - India
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- Borneo Indobara - Indonesia
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Edison Trading Spa - Italy
- Bhoruka Overseas - Indonesia
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- Semirara Mining Corp, Philippines
- Mintek Dendrill Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Mines - Canada
- Bhatia International Limited - India
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- TeaM Sual Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Parry Sugars Refinery, India
- Interocean Group of Companies - India
- Electricity Authority, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Link Ltd, New Zealand
- SMC Global Power, Philippines
- The University of Queensland
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Directorate Of Revenue Intelligence - India
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- PowerSource Philippines DevCo
- Coalindo Energy - Indonesia
- Economic Council, Georgia
- Sojitz Corporation - Japan
- South Luzon Thermal Energy Corporation
- Lanco Infratech Ltd - India
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Meralco Power Generation, Philippines
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- Toyota Tsusho Corporation, Japan
- Deloitte Consulting - India
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
- Global Coal Blending Company Limited - Australia
- GN Power Mariveles Coal Plant, Philippines
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- Cigading International Bulk Terminal - Indonesia
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