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Tuesday, 17 February 15
WHO PAYS THE SUEZ CANAL FEES? - INCE & CO
 KNOWLEDGE TO ELEVATE
This was an appeal from an arbitration award on a point of construction in relation to the wording of an addendum to a charterparty.
The Commercial Court held that the costs of transiting the Suez Canal arising as a result of amended voyage orders were for the Charterers’ account, even though the Disponent Owners would have had to incur them anyway in order to redeliver the vessel.
The background facts
The Claimant Disponent Owners (“Owners”), chartered the vessel to the Respondents for a voyage from Constanza to Djibouti. The vessel arrived at Djibouti but was unable to discharge because there were no receivers for the cargo. After the vessel had spent three months off Djibouti, the Owners and the Charterers agreed an addendum (“addendum no. 1″) to the charterparty whereby the discharge port was changed to Ain Sukhna, Egypt, a port to the south of the Suez Canal.
Addendum no. 1 provided:
“Owners and Headowners to be held harmless and indemnified against all losses, expenses, damages, risk whatsoever and howsoever arising including but not limited to those which may arise from any 3rd party including but not limited to Egyptian authority’s rejection refusal or inability to accept delivery of the cargo or from charterer’s failure to discharge cargo.”
Later, by a further addendum (“addendum no. 2″), the discharge port was changed again from Ain Sukhna to Damietta, an Egyptian port on the Mediterranean coast, meaning that the vessel would have to transit the Suez Canal northbound in order to arrive at the discharge port. Materially, addendum no. 2 provided:
“…the cargo is to be discharged at the port of Damietta (Egypt) instead of Ain Sukhna (Egypt) and all other terms, conditions, clauses and paragraphs as per Charter Party dated 23 October 2009 and addendum no. 1 and reservations of rights to remain in force.”
Under the head charterparty, a time trip charter, the Owners had to re-deliver the vessel at Port Said after completion of the voyage. She would, therefore, have had to transit the Suez Canal irrespective of the change of discharge port under addendum no. 2. The head charterparty provided that the Owners (as charterers under that charter) were responsible for all canal tolls and, therefore, as between them and the registered Owners, would have to bear the costs of transiting the Suez Canal.
In the arbitration, the Tribunal held that the costs of transiting the Suez Canal were not an expense that the Charterers had agreed to bear in the addenda on the basis that the Owners would have had to transit the Suez Canal anyway and:
“in the context, “losses” or “expenses” [in addendum no. 1, as cited above] must be construed as limited to additional losses and expenses which would not have been incurred in any event.”
It was this finding that was the subject of the Owners’ appeal.
The Commercial Court decision
The Court found that the commercial aim of the addenda had been to allow the Charterers to bring the voyage (and therefore their liability to pay demurrage) to an end and to allow the Owners to discharge the cargo and redeliver the vessel. The Court considered both the commercial objectives of the parties and their background knowledge when they agreed the addenda. The Court noted that the Owners’ liability under the head charterparty to bear the costs of transiting the Suez Canal was not within the knowledge of the Charterers and should not therefore be taken into account when assessing the scope of the Charterers’ indemnity.
Given the Court’s finding on the facts, the question which it had to answer was simply whether the expense of transiting the Suez Canal arose from the Charterers’ failure to discharge the cargo at Djibouti. The Court found that the Suez Canal transit would not have been required in order to perform the original voyage to Djibouti but was required to perform the amended voyage to Damietta and, as such, the costs of the transit were ones that the Charterers had agreed to bear. The appeal was therefore allowed.
Comment
This judgment shows the Court applying the clear wording used by the parties, since the expense arose from the Charterers’ failure to discharge the cargo at Djibouti, and that is what was expressly covered by the indemnity. The decision also emphasises that the background knowledge against which contracts will be interpreted is limited to that knowledge available to both parties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Source: Ince & Co | Hellenic Shipping News
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Friday, 20 February 15
U.S. PRODUCED AROUND 19.2 MILLION SHORT TONS OF COAL WEEK ON WEEK
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.2 million short tons (mmst) of coal ...
Thursday, 19 February 15
PANAMAX: NOPAC AND AUSSIE ROUNDS ARE DONE IN LOW/MID $ 4000; TRIPS VIA INDONESIA TO INDIA CLOSER TO THE $5000 MARK - FEARNLEYS
Handy
The handy and supra market has not seen any firming rates in front of the Chinese New Year and still suffering on low activity in both hemi ...
Wednesday, 18 February 15
DRY BULK SHIPPING TO RECOVER IN LATE 2015 - DREWRY MARITIME RESEARCH
Strong trade growth, moderating fleet development and deployment of new fuel efficient vessels are expected to lead to a recovery in dry bulk shipp ...
Tuesday, 17 February 15
BUOYANT WAVES IN RECENT YEARS: GLOBAL SHIP INVESTMENT SINCE THE CRASH - HELLENIC SHIPPING NEWS
Anxiety about fleet expansion is a recurring feature of world shipping markets. Within the global maritime community, worries about the vast amount ...
Tuesday, 17 February 15
FOB SUB-BIT INDONESIA COAL SWAP UP 8% MONTH OVER MONTH
COALspot.com: Indonesian coal swaps for delivery Q2' 2015 rose week over week and month on month.
The Q2 swap up US$ 3.58 (+8.00%) month o ...
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- Carbofer General Trading SA - India
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Kobexindo Tractors - Indoneisa
- The Treasury - Australian Government
- Savvy Resources Ltd - HongKong
- Posco Energy - South Korea
- ASAPP Information Group - India
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- Petron Corporation, Philippines
- Central Java Power - Indonesia
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- White Energy Company Limited
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Sindya Power Generating Company Private Ltd
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Kideco Jaya Agung - Indonesia
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- Makarim & Taira - Indonesia
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- Orica Mining Services - Indonesia
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Bangladesh Power Developement Board
- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Sojitz Corporation - Japan
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Indonesian Coal Mining Association
- Alfred C Toepfer International GmbH - Germany
- Bukit Makmur.PT - Indonesia
- Directorate Of Revenue Intelligence - India
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- VISA Power Limited - India
- Grasim Industreis Ltd - India
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Holcim Trading Pte Ltd - Singapore
- Wilmar Investment Holdings
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- Samtan Co., Ltd - South Korea
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- Karaikal Port Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Kapuas Tunggal Persada - Indonesia
- Energy Development Corp, Philippines
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Energy Link Ltd, New Zealand
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Timah Investasi Mineral - Indoneisa
- Siam City Cement PLC, Thailand
- International Coal Ventures Pvt Ltd - India
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Oldendorff Carriers - Singapore
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Aditya Birla Group - India
- Bhatia International Limited - India
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- Bhoruka Overseas - Indonesia
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Port Waratah Coal Services - Australia
- Gujarat Sidhee Cement - India
- Marubeni Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sakthi Sugars Limited - India
- Central Electricity Authority - India
- Australian Coal Association
- Formosa Plastics Group - Taiwan
- Larsen & Toubro Limited - India
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Manunggal Multi Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Orica Australia Pty. Ltd.
- Madhucon Powers Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Edison Trading Spa - Italy
- Independent Power Producers Association of India
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Kartika Selabumi Mining - Indonesia
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Mercator Lines Limited - India
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Chettinad Cement Corporation Ltd - India
- Bukit Baiduri Energy - Indonesia
- Minerals Council of Australia
- Leighton Contractors Pty Ltd - Australia
- Deloitte Consulting - India
- Globalindo Alam Lestari - Indonesia
- Trasteel International SA, Italy
- AsiaOL BioFuels Corp., Philippines
- GN Power Mariveles Coal Plant, Philippines
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- Lanco Infratech Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Attock Cement Pakistan Limited
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Bharathi Cement Corporation - India
- CNBM International Corporation - China
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Indogreen Group - Indonesia
- CIMB Investment Bank - Malaysia
- Malabar Cements Ltd - India
- Singapore Mercantile Exchange
- PTC India Limited - India
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