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, 17 July 09
THE NEW LAW OF MINERAL AND COAL MINING NO 4/2009 CREATE CONDUCIVE CLIMATE OF INVESTMENT IN INDONESIA
COALspot.com (Indonesia): The new Law of Mineral and Coal Mining No 4/2009, which replaces the old mining law No. 11/1967 has been signed by the Pre ...
Friday, 17 July 09
INDIA COAL TRADERS MUST OWN POWER, MINES - C&O BOSS
· Coal traders need to diversify to grow
· Coastal Energen to build first merchant power plant
· Tamil Nadu to see st ...
Friday, 17 July 09
CHINA SHENHUA ENERGY'S COAL OUTPUT SWELLS 17.6% IN H1
China Knowledge reported that, China Shenhua Energy Co Ltd, which is engaged in the coal mining, power generation and transportation businesses, on ...
Thursday, 16 July 09
CHINA ISSUES SECOND BATCH OF '09 EXPORT QUOTAS
China has issued 25 million tonnes of coal export quotas for the second batch this year, the National Development and Reform Commission said Wednesd ...
Thursday, 16 July 09
NTPC TO ENGAGE BANKERS TO ACQUIRE OVERSEAS COAL MINES
The Hindu reported that, State-run power generation company NTPC said it would appoint merchant bankers next month for acquiring coal mines identifi ...
|
|
|
Showing 6591 to 6595 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- SMC Global Power, Philippines
- Miang Besar Coal Terminal - Indonesia
- ICICI Bank Limited - India
- Africa Commodities Group - South Africa
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Planning Commission, India
- TeaM Sual Corporation - Philippines
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Mercator Lines Limited - India
- Electricity Authority, New Zealand
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- AsiaOL BioFuels Corp., Philippines
- Chamber of Mines of South Africa
- PowerSource Philippines DevCo
- Riau Bara Harum - Indonesia
- Vizag Seaport Private Limited - India
- Minerals Council of Australia
- Deloitte Consulting - India
- Bulk Trading Sa - Switzerland
- Kartika Selabumi Mining - Indonesia
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Carbofer General Trading SA - India
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- The Treasury - Australian Government
- Mjunction Services Limited - India
- Jaiprakash Power Ventures ltd
- Indian Oil Corporation Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Leighton Contractors Pty Ltd - Australia
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Australian Coal Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- Sakthi Sugars Limited - India
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- PTC India Limited - India
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- The University of Queensland
- Intertek Mineral Services - Indonesia
- Dalmia Cement Bharat India
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Jindal Steel & Power Ltd - India
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Maharashtra Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Iligan Light & Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Sojitz Corporation - Japan
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- London Commodity Brokers - England
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- Baramulti Group, Indonesia
- CNBM International Corporation - China
- Maheswari Brothers Coal Limited - India
- Samtan Co., Ltd - South Korea
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Aditya Birla Group - India
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- Salva Resources Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Energy Link Ltd, New Zealand
- Toyota Tsusho Corporation, Japan
- Indian Energy Exchange, India
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Alfred C Toepfer International GmbH - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Petron Corporation, Philippines
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Mercuria Energy - Indonesia
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- Sree Jayajothi Cements Limited - India
- Kohat Cement Company Ltd. - Pakistan
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Meenaskhi Energy Private Limited - India
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Bhatia International Limited - India
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Makarim & Taira - Indonesia
- Madhucon Powers Ltd - India
- Siam City Cement - Thailand
- Manunggal Multi Energi - Indonesia
- Rio Tinto Coal - Australia
- Central Electricity Authority - India
- PetroVietnam Power Coal Import and Supply Company
- Parliament of New Zealand
- GVK Power & Infra Limited - India
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Mintek Dendrill Indonesia
- Wood Mackenzie - Singapore
- Latin American Coal - Colombia
- Barasentosa Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indogreen Group - Indonesia
- Goldman Sachs - Singapore
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- Merrill Lynch Commodities Europe
- Malabar Cements Ltd - India
|
| |
| |
|
