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.
|
|
Friday, 28 May 10
INDIAS NEYVELI LIGNITE EYEING INDONESIA, SOUTH AFRICA COAL MINES
Integrated mining and power producer Neyveli Lignite Corporation Thursday said it is exploring possibilities for buying coal mines in Indonesia and ...
Friday, 28 May 10
ADARO ACQUIRES 25% ICP AT US$ 335 MIO
Indonesia's second largest thermal coal miner PT Adaro Energy Tbk (ADRO) today announces formation of new joint venture for Indonesian Coal Project ...
Thursday, 27 May 10
KPCL IS LOOKING FOR 0.50 MLN TON TO IMPORTED STEAMING COAL FOR RAICHUR THERMAL POWER STATION
COALspot.com: KARNATAKA POWER CORPORATION LIMITED, India invited from reputed parties meeting the pre qualifications stipulated for the import ...
Thursday, 27 May 10
TNPL TO BUY 0.240 MLN TON NON-COKING COAL FOR SECOND HALF OF 2010
COALspot.com: Tamil Nadu Newsprint and Papers Limited (TNPL), would like to procure 0.24 mln MT of imported Non-Coking Coal in 6 Shipments of about ...
Thursday, 27 May 10
DRY BULK RATES REACH 2010 HIGHS, BUT FUTURE REMAINS UNCERTAIN
This week is proving to be a milestone for the dry bulk market, as the Baltic Dry Index has propelled itself at never before seen levels for 2010. Y ...
|
|
|
Showing 5806 to 5810 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Wilmar Investment Holdings
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- Samtan Co., Ltd - South Korea
- Ministry of Mines - Canada
- Binh Thuan Hamico - Vietnam
- Wood Mackenzie - Singapore
- Borneo Indobara - Indonesia
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Renaissance Capital - South Africa
- Global Coal Blending Company Limited - Australia
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karbindo Abesyapradhi - Indoneisa
- Parliament of New Zealand
- White Energy Company Limited
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- VISA Power Limited - India
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- Energy Link Ltd, New Zealand
- Orica Australia Pty. Ltd.
- Bhatia International Limited - India
- Power Finance Corporation Ltd., India
- Altura Mining Limited, Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- SN Aboitiz Power Inc, Philippines
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Antam Resourcindo - Indonesia
- Standard Chartered Bank - UAE
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Jaiprakash Power Ventures ltd
- Indian Energy Exchange, India
- Deloitte Consulting - India
- The Treasury - Australian Government
- Posco Energy - South Korea
- Central Electricity Authority - India
- Sakthi Sugars Limited - India
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Economic Council, Georgia
- Planning Commission, India
- OPG Power Generation Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Directorate Of Revenue Intelligence - India
- Trasteel International SA, Italy
- Bahari Cakrawala Sebuku - Indonesia
- Dalmia Cement Bharat India
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- CNBM International Corporation - China
- Ministry of Transport, Egypt
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Metalloyd Limited - United Kingdom
- Manunggal Multi Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- Banpu Public Company Limited - Thailand
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coalindo Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Bhoruka Overseas - Indonesia
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- Chettinad Cement Corporation Ltd - India
- CIMB Investment Bank - Malaysia
- Kobexindo Tractors - Indoneisa
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Commonwealth Bank - Australia
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Indonesian Coal Mining Association
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Thai Mozambique Logistica
- Kartika Selabumi Mining - Indonesia
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- Sindya Power Generating Company Private Ltd
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Makarim & Taira - Indonesia
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Larsen & Toubro Limited - India
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Billiton Holdings Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Meenaskhi Energy Private Limited - India
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- PNOC Exploration Corporation - Philippines
- ICICI Bank Limited - India
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- Australian Coal Association
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- Krishnapatnam Port Company Ltd. - India
- Heidelberg Cement - Germany
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Tamil Nadu electricity Board
- Semirara Mining and Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- Miang Besar Coal Terminal - Indonesia
|
| |
| |
|
