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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, 06 October 14
' COAL-BY-WIRE' FROM SUMATRA TO JAVA - THE JAKARTA POST
Coal from the island of Sumatra accounts for most of Indonesia’s low-grade lignite, a low-quality coal that receives a poor price in internat ...
Monday, 06 October 14
THE IRON ORE SHIPPING BUSINESS IS FACING SOME ROUGH SEAS - EAST ASIA FORUM
The impact of Chinese demand on global iron ore prices is well known. A less acknowledged consequence of China’s emergence is the transformat ...
Sunday, 05 October 14
BALTIC DRY INDEX SLIPS 1.14%; BALTIC PANAMAX INDEX GAINED 9.91% WEEK ON WEEK
COALspot.com: The BDI was down by 1.14 pct and closed at 1037 points this Friday.
The Cape index was down significantly week on week or lost 5 ...
Friday, 03 October 14
U.S. WEEKLY COAL PRODUCTION UP 5.8% TO 19.9 MMST
COALspot.com – United States the world's one of largest coal producers, produced approximately 19.9 million short tons (mmst) of co ...
Thursday, 02 October 14
CAPESIZE - DULL AND WITHOUT MUCH DIRECTION AS IRON ORE AND COAL VOLUMES FAIL TO LIVE UP EXPECTATIONS
Handy
After the recent weeks´ rate increase in the Atlantic we see Panamaxes snapping up handymax and Supra cargoes at much lower levels, p ...
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- Bahari Cakrawala Sebuku - Indonesia
- Power Finance Corporation Ltd., India
- San Jose City I Power Corp, Philippines
- Georgia Ports Authority, United States
- Singapore Mercantile Exchange
- SMC Global Power, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Central Java Power - Indonesia
- Borneo Indobara - Indonesia
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- PTC India Limited - India
- Parry Sugars Refinery, India
- LBH Netherlands Bv - Netherlands
- Bhatia International Limited - India
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Orica Australia Pty. Ltd.
- Africa Commodities Group - South Africa
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- SN Aboitiz Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Marubeni Corporation - India
- Global Coal Blending Company Limited - Australia
- Aboitiz Power Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- Goldman Sachs - Singapore
- PNOC Exploration Corporation - Philippines
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Madhucon Powers Ltd - India
- Eastern Energy - Thailand
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Sarangani Energy Corporation, Philippines
- CNBM International Corporation - China
- Jorong Barutama Greston.PT - Indonesia
- Aditya Birla Group - India
- Minerals Council of Australia
- Orica Mining Services - Indonesia
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Simpson Spence & Young - Indonesia
- Kepco SPC Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Sinarmas Energy and Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Carbofer General Trading SA - India
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- Pendopo Energi Batubara - Indonesia
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Standard Chartered Bank - UAE
- Directorate Of Revenue Intelligence - India
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- Wood Mackenzie - Singapore
- Coal and Oil Company - UAE
- Grasim Industreis Ltd - India
- The University of Queensland
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- Gujarat Mineral Development Corp Ltd - India
- Central Electricity Authority - India
- Manunggal Multi Energi - Indonesia
- MS Steel International - UAE
- Trasteel International SA, Italy
- Directorate General of MIneral and Coal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- International Coal Ventures Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- TeaM Sual Corporation - Philippines
- Siam City Cement - Thailand
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Baramulti Group, Indonesia
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- CIMB Investment Bank - Malaysia
- Antam Resourcindo - Indonesia
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- India Bulls Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Global Business Power Corporation, Philippines
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Larsen & Toubro Limited - India
- Kobexindo Tractors - Indoneisa
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Uttam Galva Steels Limited - India
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- Mintek Dendrill Indonesia
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- Oldendorff Carriers - Singapore
- Medco Energi Mining Internasional
- Merrill Lynch Commodities Europe
- Lanco Infratech Ltd - India
- Ministry of Finance - Indonesia
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- GMR Energy Limited - India
- Indogreen Group - Indonesia
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Port Waratah Coal Services - Australia
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- SMG Consultants - Indonesia
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- AsiaOL BioFuels Corp., Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tata Chemicals Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Pipit Mutiara Jaya. PT, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- Altura Mining Limited, Indonesia
- ASAPP Information Group - India
- Australian Coal Association
- Anglo American - United Kingdom
- VISA Power Limited - India
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- Dalmia Cement Bharat India
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Ministry of Mines - Canada
- Alfred C Toepfer International GmbH - Germany
- Independent Power Producers Association of India
- Kumho Petrochemical, South Korea
- Jaiprakash Power Ventures ltd
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- Tamil Nadu electricity Board
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sakthi Sugars Limited - India
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