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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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- Mjunction Services Limited - India
- Iligan Light & Power Inc, Philippines
- ICICI Bank Limited - India
- Tata Chemicals Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Parliament of New Zealand
- Economic Council, Georgia
- Anglo American - United Kingdom
- Star Paper Mills Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Interocean Group of Companies - India
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Kaltim Prima Coal - Indonesia
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Parry Sugars Refinery, India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Gujarat Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Krishnapatnam Port Company Ltd. - India
- Banpu Public Company Limited - Thailand
- Mercuria Energy - Indonesia
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- GN Power Mariveles Coal Plant, Philippines
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- MS Steel International - UAE
- Semirara Mining Corp, Philippines
- Price Waterhouse Coopers - Russia
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
- Australian Commodity Traders Exchange
- European Bulk Services B.V. - Netherlands
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Commonwealth Bank - Australia
- TNB Fuel Sdn Bhd - Malaysia
- London Commodity Brokers - England
- India Bulls Power Limited - India
- Coastal Gujarat Power Limited - India
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
- Tamil Nadu electricity Board
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- Baramulti Group, Indonesia
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Goldman Sachs - Singapore
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Ministry of Mines - Canada
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Port Waratah Coal Services - Australia
- Wilmar Investment Holdings
- Georgia Ports Authority, United States
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Kepco SPC Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Borneo Indobara - Indonesia
- IHS Mccloskey Coal Group - USA
- The University of Queensland
- Asmin Koalindo Tuhup - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Heidelberg Cement - Germany
- Meralco Power Generation, Philippines
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- PowerSource Philippines DevCo
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Singapore Mercantile Exchange
- Planning Commission, India
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- The Treasury - Australian Government
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Carbofer General Trading SA - India
- Antam Resourcindo - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Vedanta Resources Plc - India
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Samtan Co., Ltd - South Korea
- Australian Coal Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Central Electricity Authority - India
- Indian Energy Exchange, India
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Sindya Power Generating Company Private Ltd
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- VISA Power Limited - India
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- Ambuja Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
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