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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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Tuesday, 30 June 15
Q1'16 FOB INDONESIA COAL SWAP CLOSED $ 43.45 PER MT
COALspot.com: Indonesian coal swap for delivery Q3 2015 declined month on month and flat week over week, this past week.
The Q3 swap was decli ...
Monday, 29 June 15
CFR SOUTH CHINA COAL SWAPS UP SLIGHTLY MONTH OVER MONTH
COALspot.com: API 8 CFR South China Coal swap for Q3’ 2015 delivery rose US$ 0.57 (1.11%) per MT month over month.
A commodity swap is a ...
Monday, 29 June 15
FOB NEWCASTLE COAL SWAP SLIGHTLY UP MONTH OVER MONTH
COALspot.com: API 5 FOB Newcastle Coal swap for Q3’ 2015 delivery up $ 0.49 per MT (1.08%) month over month to US$ 45.77 per mt. The swap was ...
Saturday, 27 June 15
THE FREIGHT MARKET WAS STEADY EARLIER IN THE WEEK; SOFTEN INTO WEEK'S END
COALspot.com: The freight market remain steady earlier in the week, but towards end of the week BDI and BCI shows some signs of softening.
The ...
Friday, 26 June 15
INDONESIA COAL PRODUCTION FALLS BETWEEN JAN-MAY : JG
The Ministry of Energy and Mineral Resources announced that coal production declined to 166 million tons between January and May, a 19 percent drop ...
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- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Sakthi Sugars Limited - India
- Singapore Mercantile Exchange
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Alfred C Toepfer International GmbH - Germany
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- Mercator Lines Limited - India
- Directorate Of Revenue Intelligence - India
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- Sindya Power Generating Company Private Ltd
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Australian Coal Association
- Thiess Contractors Indonesia
- Indo Tambangraya Megah - Indonesia
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- Australian Commodity Traders Exchange
- Madhucon Powers Ltd - India
- Malabar Cements Ltd - India
- South Luzon Thermal Energy Corporation
- GAC Shipping (India) Pvt Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Samtan Co., Ltd - South Korea
- Parliament of New Zealand
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Kepco SPC Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- ICICI Bank Limited - India
- Africa Commodities Group - South Africa
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Lanco Infratech Ltd - India
- Global Green Power PLC Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- India Bulls Power Limited - India
- Orica Mining Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Ministry of Transport, Egypt
- Globalindo Alam Lestari - Indonesia
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Sree Jayajothi Cements Limited - India
- Power Finance Corporation Ltd., India
- Semirara Mining and Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- McConnell Dowell - Australia
- Manunggal Multi Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- VISA Power Limited - India
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- Posco Energy - South Korea
- The Treasury - Australian Government
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Aditya Birla Group - India
- Anglo American - United Kingdom
- Coal and Oil Company - UAE
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- SN Aboitiz Power Inc, Philippines
- White Energy Company Limited
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- The University of Queensland
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Global Coal Blending Company Limited - Australia
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Simpson Spence & Young - Indonesia
- Mintek Dendrill Indonesia
- Bhoruka Overseas - Indonesia
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Java Power - Indonesia
- Planning Commission, India
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Maheswari Brothers Coal Limited - India
- Agrawal Coal Company - India
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Jindal Steel & Power Ltd - India
- New Zealand Coal & Carbon
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- Vizag Seaport Private Limited - India
- Bhatia International Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- Indogreen Group - Indonesia
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Thai Mozambique Logistica
- Bukit Baiduri Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Merrill Lynch Commodities Europe
- Bhushan Steel Limited - India
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Altura Mining Limited, Indonesia
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Billiton Holdings Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Chamber of Mines of South Africa
- Essar Steel Hazira Ltd - India
- Baramulti Group, Indonesia
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
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