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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, 10 October 14
U.S. PRODUCED 83.2 MMST OF COAL IN SEPTEMBER, SAYS EIA
COALspot.com – United States the world's one of largest coal producers, produced approximately 18.6 million short tons (mmst) of coal in ...
Thursday, 09 October 14
CAPESIZE MARKET HAS CONTINUED TO SHOW WEAKNESS - FEARNLEYS
Handy
We mentioned last week that after several weeks of rate increase for the Supras, the bigger Panamaxes started to snap up better paying Supr ...
Thursday, 09 October 14
SHIPPING REMAINS CHALLENGED AS GLOBAL GROWTH DISAPPOINTS - BIMCO
The global shipping industry finds no grace from much stronger economic activity going forward, as the global recovery remains fragile and uneven. ...
Wednesday, 08 October 14
CAPES RATE FOR THE W. AUSTRALIA TO CHINA VOYAGE MOVED TO BELOW $8/MT - INTERMODAL
The Dry Bulk market remained under pressure last week, with rates for Capes remaining on the red while those for Panamaxes managed to outperform th ...
Wednesday, 08 October 14
OIL COULD FALL TO USD80 BEFORE SHALE SUPPLY RESPONSE - FITCH
COALspot.com: Brent oil could fall as low as USD80 a barrel before triggering a self-correcting supply response with shale-oil drillers cutting inv ...
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- Goldman Sachs - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Star Paper Mills Limited - India
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- Jaiprakash Power Ventures ltd
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Minerals Council of Australia
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- TNB Fuel Sdn Bhd - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- GVK Power & Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- ASAPP Information Group - India
- Cigading International Bulk Terminal - Indonesia
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Directorate Of Revenue Intelligence - India
- Directorate General of MIneral and Coal - Indonesia
- Energy Development Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- Indika Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kobexindo Tractors - Indoneisa
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- Kepco SPC Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Commonwealth Bank - Australia
- Indogreen Group - Indonesia
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- IEA Clean Coal Centre - UK
- McConnell Dowell - Australia
- SMG Consultants - Indonesia
- Sarangani Energy Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- Ceylon Electricity Board - Sri Lanka
- Chamber of Mines of South Africa
- Simpson Spence & Young - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Marubeni Corporation - India
- Straits Asia Resources Limited - Singapore
- Georgia Ports Authority, United States
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- GMR Energy Limited - India
- Australian Coal Association
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- IHS Mccloskey Coal Group - USA
- Coalindo Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Anglo American - United Kingdom
- Timah Investasi Mineral - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- Merrill Lynch Commodities Europe
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- PNOC Exploration Corporation - Philippines
- Eastern Coal Council - USA
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Romanian Commodities Exchange
- Gujarat Sidhee Cement - India
- Bulk Trading Sa - Switzerland
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Sojitz Corporation - Japan
- Independent Power Producers Association of India
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- Electricity Authority, New Zealand
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- Mercator Lines Limited - India
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Bhatia International Limited - India
- Singapore Mercantile Exchange
- Tamil Nadu electricity Board
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Makarim & Taira - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Larsen & Toubro Limited - India
- Toyota Tsusho Corporation, Japan
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- European Bulk Services B.V. - Netherlands
- Ministry of Transport, Egypt
- MS Steel International - UAE
- Xindia Steels Limited - India
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Uttam Galva Steels Limited - India
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- ICICI Bank Limited - India
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- Global Green Power PLC Corporation, Philippines
- Parry Sugars Refinery, India
- AsiaOL BioFuels Corp., Philippines
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Leighton Contractors Pty Ltd - Australia
- Heidelberg Cement - Germany
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