We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 16 June 15
MERS: POTENTIAL CHARTERPARTY IMPLICATIONS - CLYDE & CO
 KNOWLEDGE TO ELEVATE
South Korea's current outbreak of Middle East Respiratory Syndrome (MERS) has been the focus of much international attention. The local impact of the outbreak has been severe, leading to nearly 3,000 schools being closed and over 5,500 people being quarantined as a result of possible contact with infected persons. The virus has so far infected over 150 people in the country and the World Health Organization (WHO) anticipates that cases will continue to surface despite indications that the outbreak is now being brought under control. Whilst public health experts do not anticipate any form of worldwide pandemic to result from the situation in South Korea, it is feared that there is scope for a regular pattern of MERS outbreaks to occur over the coming years.
The Potential Legal Impact of MERS on Charterparties
With cruise ships having cancelled calls to South Korean ports and confirmed cases of MERS in the port of Pyeongtaek, the outbreak may understandably give rise to concerns on the part of shipowners whose vessels are due to call in South Korea or the charterers of such vessels. Whether the outbreak will have legal implications on a charterparty will very much depend on the wording of the charterparty in question; standard form charterparties are unlikely to include wording dealing with outbreaks of infectious/contagious disease.
Safe Port Warranties
Shipowners are obliged to follow charterers' legitimate orders unless to do so would expose the crew to unacceptable risk. Whilst charterers under a time charter are obliged to nominate safe ports, in the absence of specific wording it is unlikely that an outbreak of MERS will render a port unsafe.
Even if an outbreak of disease is in the port city itself, as in Pyeongtaek, the port may remain safe as long as there are appropriate protective measures in place. As such, there is significant risk involved in an owner refusing an order to a port on the basis of unsafety owing to disease risk, since to do so wrongly would amount to breach of the charter for failure to follow a legitimate order.
If the facts are such that there is a significant risk to the health of the crew, then charterers may be asked to nominate an alternative port, but this may have knock-on consequences particularly if there are bills of lading issued. The best approach for owners will be to keep in close contact with their P&I Club who will be able to give timely and appropriate guidance as the situation develops.
Where a vessel is subject to a voyage charter, the prospective safety of a port is also an issue and the arguments are similar to those detailed above; as with time charters, it is likely to be difficult to demonstrate that a South Korean port is unsafe on account of MERS.
Quarantine and Deviation
In the event that a time-chartered vessel becomes subject to quarantine delays or is forced to deviate to land an ill crew member, the hire/off-hire provisions may result in the vessel being placed off-hire. The specific charterparty wording would need to be carefully considered to assess whether this might be the case.
Similar concerns also arise in relation to voyage charters. Shipowners may deviate for the safety of the crew but in such a scenario no additional freight will become payable, so such deviation is at their own expense. A defence of 'reasonable deviation' may come into play where the Hague or Hague-Visby Rules apply. In terms of quarantine, the usual position is that time spent/lost at the time of charterers' orders will count as laytime/demurrage, although this too will depend on the charterparty terms agreed.
Free Pratique
In order to commence laytime, a vessel requires free pratique clearance. Absent wording to the contrary in the charterparty, the usual position is that a master can give a valid notice of readiness (NOR) without first having all the customs documents and obtaining free pratique, provided that he has no reason to suppose that being document ready is anything other than a mere formality.
However, if the vessel has recently called to a port in an infected area, then the mere formality test may not assist, since the vessel is likely to be subject to quarantine delays while the health of the crew is ascertained. In such a scenario, unless a charterparty provision states otherwise, owners bear the risk of the delay, since they would be unable to give a valid NOR to start laytime running until free pratique clearance is obtained.
Force majeure
If the charterparty in question contains a force majeure clause, the question may also arise whether the MERS outbreak fulfils the requirements of a force majeure scenario. A typical clause of this type suspends and/or terminates performance of the charterparty on the occurrence of an extraordinary event, which is beyond the parties’ control and which impacts the ability of one or both of the parties to fulfil their contractual commitments. As such, force majeure is usually a high evidential hurdle to clear.
Whilst the WHO has described the MERS outbreak as 'large and complex', the organisation has not issued a travel ban relating to South Korea and although Hong Kong, Macau and Taiwan have advised against travelling to the country, their notices amounted to recommendations rather than official travel alerts. If the MERS outbreak becomes more widespread and/or travel bans are put in place, the possibility of the situation amounting to a force majeure event may strengthen, however, at present, the scope for force majeure appears limited, unless the wording of a particular clause is quite broadly drafted.
Comment
The South Korean government is working alongside the WHO to bring the current MERS outbreak under control, however as with any outbreak of infectious/contagious disease, the situation may raise concerns for shipowners and charterers who are aware of the potential disruption such incidents can cause.
Parties may wish to consider managing the risk associated with such outbreaks by inserting contagious/infectious disease clauses into prospective charterparties, thus avoiding the ambiguity which can arise in this area.
By Ik Wei Chong, Bethan Bradley and Aislinn Fawcett
About Clyde & Co
Clyde & Co is a dynamic, rapidly expanding global law firm focused on providing a complete legal service to clients in our core sectors.
Clyde & Co advises businesses that are at the heart of worldwide commerce and trade.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 09 September 15
FOB INDONESIA COAL SWAP LOSE GROUND ON SLOWING DEMAND
COALspot.com: Indonesian coal swap for delivery 4Q 2015 declined month on month and week over week.
The 4Q swap declined $ 1.92 (-4.52%) per t ...
Tuesday, 08 September 15
FOB RICHARDS BAY COAL SWAPS CONTINUE TO SHOW DECLINING TREND
COALspot.com: API4 FOB Richards Bay Coal swap for delivery 4Q' 2015 declined week over week and month over month.
The 4Q swap was down US$ ...
Tuesday, 08 September 15
GANGAVARAM PORT IN INDIA DISCHARGES RECORD 112,599 MT OF STEAM COAL IN 24 HOURS
COALspot.com: Gangavaram Port, an all weather, multipurpose port with water depth up-to 21 meters, capable of handling fully laden Super Cap ...
Monday, 07 September 15
THE MINE OF THE FUTURE WILL HAVE ONLY TWO EMPLOYEES, A MAN AND A DOG - SCOTT MCGOWAN
"The Technology and Innovation in Mining 2015" production team at Information Exchange Group interviewed Scott Mcgowan, Director, Global ...
Monday, 07 September 15
FOB NEWCASTLE COAL SWAP FOR Q2' 16 DELIVERY CLOSED US CENTS 25 LOWER COMPARED TO Q4' 15
COALspot.com: API 5 FOB Newcastle Coal swap for 4Q’ 2015 delivery declined $0.73 per MT (-1.68%) month over month to US$ 42.65 per mt. The sw ...
|
|
|
Showing 2826 to 2830 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Meenaskhi Energy Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Minerals Council of Australia
- Merrill Lynch Commodities Europe
- Makarim & Taira - Indonesia
- Rio Tinto Coal - Australia
- PTC India Limited - India
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Sojitz Corporation - Japan
- SMG Consultants - Indonesia
- Goldman Sachs - Singapore
- Standard Chartered Bank - UAE
- Jaiprakash Power Ventures ltd
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Attock Cement Pakistan Limited
- GN Power Mariveles Coal Plant, Philippines
- Planning Commission, India
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Trasteel International SA, Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Electricity Generating Authority of Thailand
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- Energy Link Ltd, New Zealand
- Maheswari Brothers Coal Limited - India
- Kepco SPC Power Corporation, Philippines
- Interocean Group of Companies - India
- White Energy Company Limited
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- PowerSource Philippines DevCo
- Global Business Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- Aboitiz Power Corporation - Philippines
- Renaissance Capital - South Africa
- PetroVietnam Power Coal Import and Supply Company
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- Australian Commodity Traders Exchange
- Indian Energy Exchange, India
- London Commodity Brokers - England
- Manunggal Multi Energi - Indonesia
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- Coalindo Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indika Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Intertek Mineral Services - Indonesia
- Ambuja Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- Bhoruka Overseas - Indonesia
- CIMB Investment Bank - Malaysia
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Electricity Authority, New Zealand
- San Jose City I Power Corp, Philippines
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Energy Development Corp, Philippines
- Siam City Cement - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Oldendorff Carriers - Singapore
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Parry Sugars Refinery, India
- Bhushan Steel Limited - India
- Bayan Resources Tbk. - Indonesia
- Posco Energy - South Korea
- The State Trading Corporation of India Ltd
- Metalloyd Limited - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Altura Mining Limited, Indonesia
- McConnell Dowell - Australia
- Directorate Of Revenue Intelligence - India
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- International Coal Ventures Pvt Ltd - India
- Tamil Nadu electricity Board
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- Siam City Cement PLC, Thailand
- Savvy Resources Ltd - HongKong
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- GVK Power & Infra Limited - India
- India Bulls Power Limited - India
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Parliament of New Zealand
- Heidelberg Cement - Germany
- Power Finance Corporation Ltd., India
- Medco Energi Mining Internasional
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- Singapore Mercantile Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- SN Aboitiz Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Videocon Industries ltd - India
- TeaM Sual Corporation - Philippines
- Ministry of Transport, Egypt
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indogreen Group - Indonesia
- Economic Council, Georgia
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- Marubeni Corporation - India
- VISA Power Limited - India
- European Bulk Services B.V. - Netherlands
- Larsen & Toubro Limited - India
- Grasim Industreis Ltd - India
- GAC Shipping (India) Pvt Ltd
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- MS Steel International - UAE
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- The University of Queensland
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Thiess Contractors Indonesia
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Banpu Public Company Limited - Thailand
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
|
| |
| |
|
