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, 10 July 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Friday, 10 July 20
GLOBAL SHIPPING EARNINGS FORECAST CUT AS SUPPLY SET TO OUTSTRIP DEMAND - MOODY'S
EBITDA forecast worsens, keeping outlook negative. We now expect the aggregate EBITDA of rated shipping companies to fall by around 16%-18% in 2020 ...
Friday, 10 July 20
SLOW RECOVERY IN TANKER RATES TO WEIGH ON BUANA LINTAS LAUTAN - FITCH RATINGS
Fitch Ratings believes that international tanker rates are likely improve after their sharp fall since May 2020, albeit at a slow pace. The weaknes ...
Wednesday, 08 July 20
MARKET INSIGHT - INTERMODAL
During the previous month, the dry bulk market witnessed an impressive increase in the BDI index that has reached 1800 points from 500 with a clear ...
Tuesday, 07 July 20
COAL INDIA WORKERS STRIKE CUTS OUTPUT BY 56%: OFFICIAL - REUTERS
A strike at Coal India Ltd cut production by 56% in the three days ending July 4 as workers oppose opening up coal mining to the private sector, a ...
|
|
|
Showing 876 to 880 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Commonwealth Bank - Australia
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Mintek Dendrill Indonesia
- South Luzon Thermal Energy Corporation
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- GN Power Mariveles Coal Plant, Philippines
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Sinarmas Energy and Mining - Indonesia
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- Lanco Infratech Ltd - India
- Samtan Co., Ltd - South Korea
- Tata Chemicals Ltd - India
- The Treasury - Australian Government
- Sical Logistics Limited - India
- Vedanta Resources Plc - India
- SN Aboitiz Power Inc, Philippines
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Interocean Group of Companies - India
- Ind-Barath Power Infra Limited - India
- Meralco Power Generation, Philippines
- Aboitiz Power Corporation - Philippines
- Deloitte Consulting - India
- Iligan Light & Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Attock Cement Pakistan Limited
- Bangladesh Power Developement Board
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Orica Australia Pty. Ltd.
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Mjunction Services Limited - India
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- Minerals Council of Australia
- PTC India Limited - India
- SMC Global Power, Philippines
- Riau Bara Harum - Indonesia
- White Energy Company Limited
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- Bhatia International Limited - India
- Indian Energy Exchange, India
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
- Karbindo Abesyapradhi - Indoneisa
- Mercator Lines Limited - India
- Indo Tambangraya Megah - Indonesia
- Central Java Power - Indonesia
- India Bulls Power Limited - India
- Sojitz Corporation - Japan
- The University of Queensland
- ICICI Bank Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Sakthi Sugars Limited - India
- Trasteel International SA, Italy
- Anglo American - United Kingdom
- Karaikal Port Pvt Ltd - India
- GVK Power & Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Therma Luzon, Inc, Philippines
- Uttam Galva Steels Limited - India
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Directorate General of MIneral and Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Energy Development Corp, Philippines
- Borneo Indobara - Indonesia
- Indian Oil Corporation Limited
- Medco Energi Mining Internasional
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- MS Steel International - UAE
- Kalimantan Lumbung Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Timah Investasi Mineral - Indoneisa
- CNBM International Corporation - China
- Kapuas Tunggal Persada - Indonesia
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Gujarat Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- Kepco SPC Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Essar Steel Hazira Ltd - India
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- Parliament of New Zealand
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- SMG Consultants - Indonesia
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Australian Commodity Traders Exchange
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Tamil Nadu electricity Board
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- Standard Chartered Bank - UAE
- Krishnapatnam Port Company Ltd. - India
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Coal and Oil Company - UAE
- Leighton Contractors Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Sree Jayajothi Cements Limited - India
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- Renaissance Capital - South Africa
- Latin American Coal - Colombia
- Thiess Contractors Indonesia
- Meenaskhi Energy Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
|
| |
| |
|
