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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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Thursday, 09 July 15
LACK OF FRESH BUSINESS IN THE PACIFIC LEFT CAPESIZE RATES MOVING SIDEWAYS - INTERMODAL
COALspot.com: Intermodal ship broker says in its weekly report that, a different picture from what we saw the previous week was painted during the ...
Wednesday, 08 July 15
RIO TINTO'S MODERNISED KITIMAT SMELTER BEGINS PRODUCTION; KITIMAT BECOMING ONE OF THE LOWEST COST SMELTERS IN THE WORLD
COALspot.com: Rio Tinto is preparing its first shipments of metal from its world-class Kitimat aluminium smelter in Canada following an extensive m ...
Wednesday, 08 July 15
Q3'15 INDONESIA COAL SWAP DECLINED 3.14% MONTH OVER MONTH
COALspot.com: Indonesian coal swap for delivery Q3 2015 declined month on month and week over week, this past week.
The Q3 swap was declined $ ...
Tuesday, 07 July 15
FOB RICHARDS BAY COAL SWAPS DECLINED WEEK OVER WEEK
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q3' 2015 declined month over month and week over week.
The Q3 swap was down US$ ...
Tuesday, 07 July 15
FOB NEWCASTLE COAL SWAP ADVANCED MONTH OVER MONTH
COALspot.com: API 5 FOB Newcastle Coal swap for Q3’ 2015 delivery up $ 0.28 per MT (-0.61%) month over month to US$ 45.85 per mt. The swap wa ...
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- Bukit Makmur.PT - Indonesia
- Mercator Lines Limited - India
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- Australian Coal Association
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bulk Trading Sa - Switzerland
- Karbindo Abesyapradhi - Indoneisa
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Tata Chemicals Ltd - India
- Port Waratah Coal Services - Australia
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- Global Green Power PLC Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Intertek Mineral Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- GVK Power & Infra Limited - India
- San Jose City I Power Corp, Philippines
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- London Commodity Brokers - England
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- McConnell Dowell - Australia
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Krishnapatnam Port Company Ltd. - India
- SN Aboitiz Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Minerals Council of Australia
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- Ambuja Cements Ltd - India
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Australian Commodity Traders Exchange
- Kideco Jaya Agung - Indonesia
- The University of Queensland
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- Chamber of Mines of South Africa
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Thiess Contractors Indonesia
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Grasim Industreis Ltd - India
- Singapore Mercantile Exchange
- The Treasury - Australian Government
- Kartika Selabumi Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Banpu Public Company Limited - Thailand
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- Metalloyd Limited - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Gujarat Mineral Development Corp Ltd - India
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- New Zealand Coal & Carbon
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- ICICI Bank Limited - India
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Manunggal Multi Energi - Indonesia
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Billiton Holdings Pty Ltd - Australia
- Independent Power Producers Association of India
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Jindal Steel & Power Ltd - India
- Sree Jayajothi Cements Limited - India
- GAC Shipping (India) Pvt Ltd
- Indo Tambangraya Megah - Indonesia
- CIMB Investment Bank - Malaysia
- ASAPP Information Group - India
- Chettinad Cement Corporation Ltd - India
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kohat Cement Company Ltd. - Pakistan
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Baramulti Group, Indonesia
- Medco Energi Mining Internasional
- Dalmia Cement Bharat India
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Indika Energy - Indonesia
- SMG Consultants - Indonesia
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Indian Energy Exchange, India
- Ministry of Finance - Indonesia
- The State Trading Corporation of India Ltd
- Semirara Mining and Power Corporation, Philippines
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Thai Mozambique Logistica
- Kepco SPC Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Sojitz Corporation - Japan
- Anglo American - United Kingdom
- Energy Development Corp, Philippines
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