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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, 08 October 14
IS THERE ANY BRIGHT SIDE ON THE DRY BULK SEGMENT? - YANNIS OLZIERSKY
In the movie “Life Of Brian”, a character on a nearby cross was singing the famous “Always look on the bright side of life” ...
Tuesday, 07 October 14
TAIPOWER TO IMPORT 525K MT OF LOW ASH AND EXTRA LOW SULFUR SUB-BITUMINOUS COAL
COALspot.com: Taiwan Power Company intends to procure 525,000 metric tons of low ash and extra low sulfur sub-bituminous coal for Taipower thermal ...
Tuesday, 07 October 14
SUB-BIT FOB INDONESIA COAL SWAP SHOWS A FLAT TO WEAK TREND THIS PAST WEEK
COALspot.com: Indonesian coal swaps November 2014 delivery flat week on week and gained US$ 0.10 (-0.20%) per mt day on day. The swap also lost US$ ...
Tuesday, 07 October 14
THE RIO TINTO CONFIRMS THAT NO DISCUSSIONS ARE TAKING PLACE WITH GLENCORE
COALspot.com: The board of Rio Tinto notes the recent press speculation regarding a possible combination of Rio Tinto and Glencore.The Rio Tinto bo ...
Tuesday, 07 October 14
API 8 CFR SOUTH CHINA COAL SWAP HEADED SOUTH
COALspot.com: API 8 CFR South China Coal swap for delivery in November 2014 decreased US$ 1.10 (-1.64%) month over month and US$ 0.25 (-0.38%) ...
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- Bukit Baiduri Energy - Indonesia
- Standard Chartered Bank - UAE
- White Energy Company Limited
- ICICI Bank Limited - India
- Attock Cement Pakistan Limited
- Goldman Sachs - Singapore
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Mercator Lines Limited - India
- The University of Queensland
- Romanian Commodities Exchange
- Leighton Contractors Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- GVK Power & Infra Limited - India
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Sindya Power Generating Company Private Ltd
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Sical Logistics Limited - India
- The State Trading Corporation of India Ltd
- Ministry of Transport, Egypt
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Coalindo Energy - Indonesia
- Madhucon Powers Ltd - India
- Videocon Industries ltd - India
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Port Waratah Coal Services - Australia
- Oldendorff Carriers - Singapore
- Sree Jayajothi Cements Limited - India
- Posco Energy - South Korea
- New Zealand Coal & Carbon
- Eastern Coal Council - USA
- Directorate General of MIneral and Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Kartika Selabumi Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- MS Steel International - UAE
- Bhoruka Overseas - Indonesia
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- PowerSource Philippines DevCo
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Rio Tinto Coal - Australia
- Ministry of Mines - Canada
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- Simpson Spence & Young - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- Aboitiz Power Corporation - Philippines
- CNBM International Corporation - China
- Parliament of New Zealand
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Ind-Barath Power Infra Limited - India
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Essar Steel Hazira Ltd - India
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- Neyveli Lignite Corporation Ltd, - India
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Malabar Cements Ltd - India
- Renaissance Capital - South Africa
- Mintek Dendrill Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- CIMB Investment Bank - Malaysia
- Chamber of Mines of South Africa
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- Sakthi Sugars Limited - India
- Ministry of Finance - Indonesia
- Global Green Power PLC Corporation, Philippines
- Riau Bara Harum - Indonesia
- Indika Energy - Indonesia
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Electricity Authority, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- Indonesian Coal Mining Association
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Energy Development Corp, Philippines
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Bhatia International Limited - India
- Sojitz Corporation - Japan
- Bharathi Cement Corporation - India
- Georgia Ports Authority, United States
- Cement Manufacturers Association - India
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Banpu Public Company Limited - Thailand
- VISA Power Limited - India
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Kumho Petrochemical, South Korea
- OPG Power Generation Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- Trasteel International SA, Italy
- Electricity Generating Authority of Thailand
- Savvy Resources Ltd - HongKong
- Siam City Cement - Thailand
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Java Power - Indonesia
- SMC Global Power, Philippines
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Thiess Contractors Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Makarim & Taira - Indonesia
- London Commodity Brokers - England
- International Coal Ventures Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- IEA Clean Coal Centre - UK
- Pipit Mutiara Jaya. PT, Indonesia
- Bulk Trading Sa - Switzerland
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Jaiprakash Power Ventures ltd
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Wilmar Investment Holdings
- Pendopo Energi Batubara - Indonesia
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- Star Paper Mills Limited - India
- Alfred C Toepfer International GmbH - Germany
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