We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 17 July 15
DO CANCELLATION RIGHTS UNDER VOYAGE CHARTERPARTY SURVIVE RE-NOMINATION OF LOAD PORT? - INCE&CO
 KNOWLEDGE TO ELEVATE
Do cancellation rights under voyage charterparty survive re-nomination of load port?
St Shipping & Transport Inc v. Kriti Filoxenia Shipping Co SA [2015] EWHC 997 (Comm) (MT Kriti Filoxenia)
The Commercial Court has considered whether cancellation provisions in the BEEPEEVOY3 charterparty form were applicable in the event of re-nomination of a load port by charterers under the charter. In this case, the Charterers re-nominated the load port which the Owners were not able to reach by the cancellation date. The Charterers cancelled the charterparty. In arbitration proceedings, the Tribunal found that the cancellation provisions were not applicable where the Charterers had exercised the contractual option to re-nominate a load port. The Charterers appealed the decision to the Commercial Court, which upheld the findings of the Tribunal and dismissed the appeal.
The background facts
This case concerned a voyage charterparty under the BEEPEEVOY 3 standard form. The key clauses in the charterparty provided as follows:
“17.… If it appears to Charterers that the Vessel will be delayed beyond the Cancelling Date Charterers may require Owners to notify Charterers of the date on which they expect the Vessel to be ready to load whereupon Charterers shall have the option to cancel this Charter…
24.… If after any loading or discharge port or place has been nominated Charterers desire to vary such port or place, Owners shall issue such revised instructions as are necessary at any time to give effect to Charterers’ revised orders and any period by which the steaming time taken to reach the alternative port or place exceeds the time which should have been taken had the Vessel proceeded thither directly shall count as laytime or, if the Vessel is on demurrage, as demurrage.”
The vessel proceeded to a nominated load port within the range provided for under the charterparty. The Charterers then nominated an alternative load port under clause 24. The Owners could not reach that load port by the cancellation date and the Charterers cancelled the charterparty in reliance upon clause 17. The Owners denied that the Charterers had a right to cancel and accepted the cancellation as a repudiation of the charterparty. The dispute went to arbitration.
The arbitration award
The Tribunal found in favour of the Owners and held that the cancellation provisions in clause 17 did not apply where the Charterers exercised the liberty given under clause 24 to re-nominate the load port. The Tribunal further held that, even if the cancellation provisions did apply, the Charterers may not cancel where the re-nomination was made at a time when the estimated time of arrival for the re-nominated port was after the cancellation date under the charterparty. The Charterers appealed to the Commercial Court.
The Commercial Court decision
When it came to construing the words in clauses 17 and 24 of the charterparty, the Court took as its starting point the ordinary and natural meaning of the words used in those clauses as they would be understood by reasonable charterers and owners in the context in which the agreement was made. The Court highlighted the importance of the fact that the parties to a charterparty were involved in a venture which required a degree of co-operation in order to work successfully. Regarding clause 17, the cancellation clause, the Charterers’ ability to cancel necessarily entailed that the Charterers would do what is necessary on their part to enable the vessel to achieve that cancellation date and not impair the
Owners’ ability to comply with that date
The Court also looked at the reasons why it is in the interests of both sides to agree a cancellation date. At common law, subject to the express terms of a charterparty, both parties are bound by the contract until the delay is such that it frustrates the commercial purpose of the venture. Agreeing a cancellation date provides certainty to both parties in that it avoids disputes as to when that delay has frustrated a contract, which is a matter of fact in each case.
The Court referred to the “broad commercial interpretation” it has previously taken in the construction of these types of clauses, in order to achieve the parties’ commercial objectives. In this regard, the Court examined the commercial considerations which underlie the re-nomination clause. For the Charterers, the main advantage of this clause is to have greater flexibility to revise their orders so as to tailor their shipping arrangements according to their cargo arrangements. On the other hand, absence of the load port re-nomination provision would be advantageous to the Owners since it would give them the certainty of an irrevocable nomination. The Court also noted the commercial value of the cancellation clause from the Charterers’ perspective. On balance, the Court placed more importance on the Owners’ concerns of losing the certainty of an irrevocable nomination, whilst at the same time remaining exposed to the Charterers’ right to cancel.
The Court also noted that clause 24 made no express reference to the cancellation rights under clause 17. The Court recognised that the BEEPEEVOY 3 charterparty, being a standard form, is a document drafted with considerable care. Had the draftsmen of this form intended for the clause 17 cancellation rights to apply to a re-nomination of the load port under clause 24, express words would have been used to that effect and would have provided for how such rights would apply and in what circumstances. No such words were present in this case.
The appeal was therefore dismissed.
Comment
This case serves as a useful reminder of the English Court’s approach to the interpretation of charterparty provisions and, in particular, to consideration of the interplay between a cancellation clause and a load port re-nomination provision under a voyage charterparty. This decision also highlights the Court’s commercial approach to such issues, in particular its reference to the Charterers’ duty to co-operate with the Owners and to do what is necessary to enable the vessel to achieve the cancellation date if they wish to be able to rely upon the cancellation clause.
Source: INCE&Co
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Saturday, 23 July 11
PANAMAX MARKET FACED A LIMITED ACTIVITY IN ALL BASINS
Handy
Atlantic softening across all segments with little fresh enquiry ex Bsea/Cont/USG and ECSA. Trips to Far east remain healthy. More cargoes ex ...
Friday, 22 July 11
MARUBENI ACQUIRING 42.86% SHARE OF YTL JAWA POWER HOLDINGS
COALspot.com - Japan’s Marubeni Corporation acquisition 42.86% stake in YTL Jawa Power Holdings BV, which owns a 35% equity interest in Indone ...
Thursday, 21 July 11
INDIA IMPORTS 36.033 MILLION TONS OF INDONESIAN COAL TILL JUNE
COALspot.com - Indonesia shipped 28.27 Million tons of coal in June 2011, a 2.3 percent lesser than May export of about 28.962 million tons, I ...
Thursday, 21 July 11
COAL PRICES ARE AT US$ 120 A TONNE
COALspot.com - Indonesian coal production in 2011 is expected to reach 360 million tons or 5.8 percent higher than government's forecasts. The incr ...
Thursday, 21 July 11
DRY BULK RATES EDGE FURTHER DOWN ON WEAK MARKET SENTIMENT - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market fell once again on Wednesday marking the ninth straight day of losses. The industry’s benchmark, the Baltic Dry Index (BDI ...
|
|
|
Showing 5176 to 5180 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Makarim & Taira - Indonesia
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Semirara Mining and Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Australian Coal Association
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Marubeni Corporation - India
- Power Finance Corporation Ltd., India
- Parry Sugars Refinery, India
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- Latin American Coal - Colombia
- McConnell Dowell - Australia
- Minerals Council of Australia
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Wood Mackenzie - Singapore
- Metalloyd Limited - United Kingdom
- South Luzon Thermal Energy Corporation
- Dalmia Cement Bharat India
- Lanco Infratech Ltd - India
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Vedanta Resources Plc - India
- AsiaOL BioFuels Corp., Philippines
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Indonesian Coal Mining Association
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kaltim Prima Coal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Sical Logistics Limited - India
- Ministry of Finance - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- GMR Energy Limited - India
- Indogreen Group - Indonesia
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Star Paper Mills Limited - India
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- TNB Fuel Sdn Bhd - Malaysia
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- Interocean Group of Companies - India
- Barasentosa Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Maharashtra Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- India Bulls Power Limited - India
- Medco Energi Mining Internasional
- Borneo Indobara - Indonesia
- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Goldman Sachs - Singapore
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Intertek Mineral Services - Indonesia
- Parliament of New Zealand
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- MS Steel International - UAE
- Eastern Coal Council - USA
- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- Eastern Energy - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Jaiprakash Power Ventures ltd
- Carbofer General Trading SA - India
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Commonwealth Bank - Australia
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- Indika Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- Ministry of Transport, Egypt
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Xindia Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Asmin Koalindo Tuhup - Indonesia
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- CIMB Investment Bank - Malaysia
- Tamil Nadu electricity Board
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Renaissance Capital - South Africa
- Energy Development Corp, Philippines
- Economic Council, Georgia
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Agrawal Coal Company - India
|
| |
| |
|
