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.
|
|
Tuesday, 17 August 10
HANDIES AND SUPRAS WOKE UP AGAIN AFTER SEVERAL WEEKS OF LETHARGY - BRS
A spectacular increase in Cape size rates pushed the BDI up more than 20% this week, with demand for prompt tonnage in the Pacific causing a major s ...
Monday, 16 August 10
INDIA'S TNPL TO SUPPORT TNEB WITH COAL SUPPLIES
COALspot.com: TNPL to award 300,000 MT of coal supply contract to Nehel General Trading of India. Tamil Nadu state undertaking , Tamil N ...
Monday, 16 August 10
INDONESIA'S PLN SECURED COAL SUPPLIES, LESS IMPACT BY RAINS
COALspot.com: Indonesian State Electricity Company, PT Perusahaan Listrik Negara (PLN), has secured coal supplies for all of its power plants except ...
Sunday, 15 August 10
THE FREIGHT MARKET IS EXPECTED TO REMAIN FIRM - CAPT REDDY
COALspot.com: The BDI rose by almost 22 pct despite peak holiday season which is usually quite market , where as the BCI up sharply by 46 pct which ...
Saturday, 14 August 10
INDONESIAN THERMAL COAL PRICES EXPECTED TO MOVE UP IN SEPTEMBER 2010 - CHAIRMAN ICMA
COALspot.com: Indonesian Coal Mining Association is expecting, the Indonesian and international coal prices will increase, and will be reached ...
|
|
|
Showing 5661 to 5665 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Asam (Persero) Tbk - Indonesia
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Tata Chemicals Ltd - India
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- Australian Commodity Traders Exchange
- Wood Mackenzie - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Bulk Trading Sa - Switzerland
- Ministry of Finance - Indonesia
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Sinarmas Energy and Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- Economic Council, Georgia
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- Central Electricity Authority - India
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- GMR Energy Limited - India
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Vedanta Resources Plc - India
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Chettinad Cement Corporation Ltd - India
- Thai Mozambique Logistica
- Ambuja Cements Ltd - India
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Parry Sugars Refinery, India
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Ministry of Mines - Canada
- Aboitiz Power Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Electricity Authority, New Zealand
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Tamil Nadu electricity Board
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- Bhushan Steel Limited - India
- IEA Clean Coal Centre - UK
- Barasentosa Lestari - Indonesia
- Meralco Power Generation, Philippines
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Riau Bara Harum - Indonesia
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Semirara Mining Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Kumho Petrochemical, South Korea
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- McConnell Dowell - Australia
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parliament of New Zealand
- Cigading International Bulk Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Ind-Barath Power Infra Limited - India
- Renaissance Capital - South Africa
- Planning Commission, India
- Vijayanagar Sugar Pvt Ltd - India
- Sical Logistics Limited - India
- Orica Australia Pty. Ltd.
- Siam City Cement - Thailand
- Standard Chartered Bank - UAE
- Latin American Coal - Colombia
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Australian Coal Association
- Toyota Tsusho Corporation, Japan
- Krishnapatnam Port Company Ltd. - India
- Maharashtra Electricity Regulatory Commission - India
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Price Waterhouse Coopers - Russia
- Heidelberg Cement - Germany
- Bhoruka Overseas - Indonesia
- Makarim & Taira - Indonesia
- Formosa Plastics Group - Taiwan
- Uttam Galva Steels Limited - India
- PowerSource Philippines DevCo
- Sarangani Energy Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Globalindo Alam Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- Sindya Power Generating Company Private Ltd
- Wilmar Investment Holdings
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- India Bulls Power Limited - India
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- New Zealand Coal & Carbon
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Iligan Light & Power Inc, Philippines
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- The State Trading Corporation of India Ltd
- Semirara Mining and Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
|
| |
| |
|
