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Sunday, 12 July 15
SHIPYARD NOT LIABLE FOR ENGINE ROOM FIRE CAUSED BY OIL LEAKAGE - BIRCH WINDAHL
KNOWLEDGE TO ELEVATE
A Danish vessel owner requested a Danish shipyard to undertake repairs and maintenance works on its vessel. An agreement between the two parties stipulated that the shipyard would be liable for damages caused to the vessel resulting from negligence on the part of the shipyard, its employees or subcontractors. On February 17 2011 at 11:40am – in connection with repair works in the engine room of the vessel – damage was caused to an oil pipe due to an error which resulted in the leakage of 200 litres of oil into the engine room. After the leakage, all hot work in the vessel was suspended. The repair work resumed at 6:45pm. However, it was not clear whether the hot work was also resumed at that time. At 6:16pm a boiler which was used to heat the accommodation on the vessel was switched on by the owner’s crew.
The clean-up of the oil spillage had not been finished at that point. The exhaust smoke from the boiler was 290 degrees Celsius. The self-ignition temperature of the leaked oil was 350 degrees Celsius, whereas its flashpoint temperature was 250 degrees Celsius. It was disputed in the proceedings whether the shipyard had confirmed that the boiler could be switched on. At 8:00pm smoke was detected in the casing and a fire was also detected. The owner and the shipyard agreed that the fire had been caused by the fact that the leaked oil had been ignited. However, it was uncertain how this had happened. After the damage caused by the fire was repaired, the vessel left the shipyard on February 20 2011. On the night of February 20 2011 another fire broke out on the vessel close to its main engine. The owner brought proceedings against the shipyard and submitted a claim for compensation for the damage caused due to the fire. The shipyard denied liability and submitted that it had not been proven that the fires were caused by the shipyard due to errors or omissions on its part.
Decision
The Maritime and Commercial Court stated that the presence of oil in the engine room was “a necessary prerequisite but not a sufficient condition for the fire to occur”. The court found that it was not proven that the shipyard, due to errors or omissions, had caused the oil to ignite. The court stated as follows:
“The court finds that the Owner has not proved that the ignition of the oil, approximately eight hours after the leakage, stems from an error or omission on the part of the Yard or any for which it is responsible. The reason for the ignition has not been clarified, the court, however, finds that the ignition as mentioned required an external source of heat and that the fire, on the basis of the available facts… must be considered to have occurred in time close to the start-up of the boiler which was the responsibility of the owner and it cannot be considered proven that the yard had approved that the boiler could be started.”(1)
The shipyard was thus found free of liability.
Comment
It followed from the contract terms pertaining to the repair work that the shipyard could be held liable only subject to proof of negligence on its part. If the aforementioned contract terms had not been agreed, the shipyard could possibly have been held liable under Danish law, unless it could establish that it had not caused the damage due to negligence. The fact that there were several possible causes of the fire and that the shipyard was not liable if the oil had been ignited by sparks from the boiler – which had been switched on by the owner’s crew – meant that the shipyard was not liable. The failure to determine the source of the fire – regardless of the fact that it would undoubtedly not have occurred on February 17 2011 if the shipyard had not caused the oil leak – was insufficient to impose liability on the shipyard. With respect to the subsequent fire, it was also not established by the owner that it had been the result of negligence on the part of the shipyard.
Source: Birch Windahl
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Monday, 13 July 15
THE DRY BULK MARKET CLOSED ON A POSITIVE TONE THIS PAST WEEK
COALspot.com: Despite Greece crisis and turmoil in the stock market across the world , the freight market overall was firm and up in all segments t ...
Saturday, 11 July 15
MAJOR IRANIAN GAS EXPORTS WILL TAKE AT LEAST FIVE YEARS - FITCH
Iran has the long-term potential to become one of the world's top gas producers, thanks to its 34 trillion cubic meters (tcm) of natural gas re ...
Friday, 10 July 15
DRY BULK MARKET KEEPS POSITIVE MOMENTUM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its positive momentum over the course of the past few days, thanks to Panamax gains. During yesterday’s session ...
Friday, 10 July 15
U.S PRODUCED APPROXIMATELY TOTALED AN ESTIMATED 14.1 MMST WEEK OVER WEEK - EIA
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 14.1 million short ...
Thursday, 09 July 15
CPP MARKET : POSITIVE IN THE SHORT TERM - GEORGE VASTARDIS
Despite the traditionally quieter summer period, the clean tanker market has so far experienced healthy activity especially East of Suez. Increased ...
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- Directorate Of Revenue Intelligence - India
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- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining Corp, Philippines
- Samtan Co., Ltd - South Korea
- IEA Clean Coal Centre - UK
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
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- GVK Power & Infra Limited - India
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- White Energy Company Limited
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- Ambuja Cements Ltd - India
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- Oldendorff Carriers - Singapore
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- Lanco Infratech Ltd - India
- Sojitz Corporation - Japan
- Ministry of Mines - Canada
- Intertek Mineral Services - Indonesia
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- Global Green Power PLC Corporation, Philippines
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- Thai Mozambique Logistica
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- Bhatia International Limited - India
- Africa Commodities Group - South Africa
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- Eastern Coal Council - USA
- Australian Commodity Traders Exchange
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- Banpu Public Company Limited - Thailand
- Ministry of Finance - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- The State Trading Corporation of India Ltd
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- Kideco Jaya Agung - Indonesia
- Sindya Power Generating Company Private Ltd
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- San Jose City I Power Corp, Philippines
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Wood Mackenzie - Singapore
- Chamber of Mines of South Africa
- SMG Consultants - Indonesia
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Anglo American - United Kingdom
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Port Waratah Coal Services - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Posco Energy - South Korea
- Australian Coal Association
- Mercator Lines Limited - India
- Attock Cement Pakistan Limited
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- SMC Global Power, Philippines
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Formosa Plastics Group - Taiwan
- Pendopo Energi Batubara - Indonesia
- Coastal Gujarat Power Limited - India
- Bhoruka Overseas - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
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- Central Electricity Authority - India
- Leighton Contractors Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Uttam Galva Steels Limited - India
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- European Bulk Services B.V. - Netherlands
- Meenaskhi Energy Private Limited - India
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- Electricity Generating Authority of Thailand
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- Dalmia Cement Bharat India
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- GMR Energy Limited - India
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Price Waterhouse Coopers - Russia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Sakthi Sugars Limited - India
- Carbofer General Trading SA - India
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- MS Steel International - UAE
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Interocean Group of Companies - India
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Mining Services - Indonesia
- Siam City Cement PLC, Thailand
- Agrawal Coal Company - India
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- London Commodity Brokers - England
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Global Business Power Corporation, Philippines
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- TNB Fuel Sdn Bhd - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Medco Energi Mining Internasional
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Tamil Nadu electricity Board
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- Rashtriya Ispat Nigam Limited - India
- Standard Chartered Bank - UAE
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- GN Power Mariveles Coal Plant, Philippines
- The University of Queensland
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
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- LBH Netherlands Bv - Netherlands
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Parliament of New Zealand
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