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, 08 September 17
MIXED SIGNALS ON REFINERY PREPARATIONS FOR 2020 FUEL CHANGES - IBIA
A recent consultancy survey has suggested that some 85% of refiners have not made plans for how to deal with the expected dramatic fall in g ...
Thursday, 07 September 17
CAPESIZE: EARNINGS FOR THE BIG SHIPS KEEP UP NICELY AS DIPS ARE MODERATE AND SHORT-LIVED - FEARNLEYS
Supramax
Fewer activities in the Atlantic in start of the week with the US holidays. Owners were asking around low USD 20k for trip ex USG to Far ...
Thursday, 07 September 17
TALK OF CONSTRAINTS ON CHINESE COAL OUTPUT PUSHED PRICES HIGHER - DANIEL HYNES
Commodity markets were largely higher as a weaker USD boosted investor appetite.
According to Daniel Hynes, Senior Commodity Strategist at ANZ ...
Wednesday, 06 September 17
LAYTIME - CHARTERERS' RIGHTS & PORT COSTS - NORTH P&I CLUB
KNOWLEDGE TO ELEVATE
In a recent London Arbitration decision (18/17) the Tribunal had to consider whether the owners were entitled to recover ...
Wednesday, 06 September 17
SHIPPING MARKET INSIGHT - STELIOS KOLLINTZAS
The impact of Hurricane Harvey, which made landfall on 25th of August in South East coastline of Texas area has been the major concern of the shipp ...
|
|
|
Showing 1951 to 1955 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Malabar Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Vijayanagar Sugar Pvt Ltd - India
- Aditya Birla Group - India
- SMC Global Power, Philippines
- Sakthi Sugars Limited - India
- Africa Commodities Group - South Africa
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Krishnapatnam Port Company Ltd. - India
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Rio Tinto Coal - Australia
- IEA Clean Coal Centre - UK
- Bukit Baiduri Energy - Indonesia
- Agrawal Coal Company - India
- Standard Chartered Bank - UAE
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Petron Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Cigading International Bulk Terminal - Indonesia
- Deloitte Consulting - India
- Port Waratah Coal Services - Australia
- Semirara Mining Corp, Philippines
- Meralco Power Generation, Philippines
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Madhucon Powers Ltd - India
- The University of Queensland
- Siam City Cement - Thailand
- India Bulls Power Limited - India
- SN Aboitiz Power Inc, Philippines
- White Energy Company Limited
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Planning Commission, India
- Kaltim Prima Coal - Indonesia
- Commonwealth Bank - Australia
- Therma Luzon, Inc, Philippines
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- The Treasury - Australian Government
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Parry Sugars Refinery, India
- Indonesian Coal Mining Association
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Cement Manufacturers Association - India
- AsiaOL BioFuels Corp., Philippines
- Manunggal Multi Energi - Indonesia
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- Thiess Contractors Indonesia
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Kepco SPC Power Corporation, Philippines
- Chamber of Mines of South Africa
- Aboitiz Power Corporation - Philippines
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- Makarim & Taira - Indonesia
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- MS Steel International - UAE
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Directorate Of Revenue Intelligence - India
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- Trasteel International SA, Italy
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sical Logistics Limited - India
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
- VISA Power Limited - India
- Energy Link Ltd, New Zealand
- Bayan Resources Tbk. - Indonesia
- Lanco Infratech Ltd - India
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Carbofer General Trading SA - India
- Uttam Galva Steels Limited - India
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhushan Steel Limited - India
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- GVK Power & Infra Limited - India
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- ASAPP Information Group - India
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Gujarat Mineral Development Corp Ltd - India
- GMR Energy Limited - India
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Renaissance Capital - South Africa
- Thai Mozambique Logistica
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- Wood Mackenzie - Singapore
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Marubeni Corporation - India
- Australian Coal Association
- Xindia Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Bulk Trading Sa - Switzerland
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Vedanta Resources Plc - India
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Central Java Power - Indonesia
- The State Trading Corporation of India Ltd
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- Orica Australia Pty. Ltd.
- GAC Shipping (India) Pvt Ltd
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- Romanian Commodities Exchange
- Alfred C Toepfer International GmbH - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Essar Steel Hazira Ltd - India
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- Intertek Mineral Services - Indonesia
- Star Paper Mills Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- Maheswari Brothers Coal Limited - India
- Grasim Industreis Ltd - India
|
| |
| |
|
