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.
|
|
Monday, 14 December 15
CFR SOUTH CHINA COAL SWAP IS STILL SLIDING
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2016 delivery declined US$ 0.93(2.18%) per ton month over month.
A commodity swap ...
Sunday, 13 December 15
THE LOW VESSEL DEMANDS PUSHED DOWN BALTIC DRY INDEX FURTHER DOWN
COALspot.com: The low vessel demand across nearly all vessel sizes pushed the Baltic Exchange’s main sea freight index further down in this F ...
Sunday, 13 December 15
DRY BULK RATES KEEP ON FALLING AS LOW VESSEL DEMAND IS STILL THE NORM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market nowadays is in an endless downward spiral, which as it turns out is unable to recover, at least as long as the current balance ...
Friday, 11 December 15
US COAL PRODUCTION UP 7.7% IN WEEK ENDED DECEMBER 5, 2015
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 16.1 million shor ...
Thursday, 10 December 15
LIENING CARGO - WHICH LIEN CLAUSE APPLIES TO THE BILL OF LADING? : WIKBORG REIN | HELLENIC SHIPPING NEWS
KNOWLEDGE TO ELEVATE
In a dry bulk market where a charterer is not paying freight or hire, its counterparty is often left to consider whether ...
|
|
|
Showing 2656 to 2660 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- PNOC Exploration Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Dalmia Cement Bharat India
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- Deloitte Consulting - India
- Planning Commission, India
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Thai Mozambique Logistica
- GN Power Mariveles Coal Plant, Philippines
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- Indika Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Generating Authority of Thailand
- Independent Power Producers Association of India
- Australian Commodity Traders Exchange
- Gujarat Mineral Development Corp Ltd - India
- The Treasury - Australian Government
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- Semirara Mining and Power Corporation, Philippines
- Commonwealth Bank - Australia
- Coalindo Energy - Indonesia
- GMR Energy Limited - India
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- SMG Consultants - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Indian Oil Corporation Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Altura Mining Limited, Indonesia
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- Global Green Power PLC Corporation, Philippines
- Ministry of Mines - Canada
- Siam City Cement PLC, Thailand
- Gujarat Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- TeaM Sual Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Ambuja Cements Ltd - India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Edison Trading Spa - Italy
- Jorong Barutama Greston.PT - Indonesia
- Georgia Ports Authority, United States
- CIMB Investment Bank - Malaysia
- Borneo Indobara - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- PTC India Limited - India
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- MS Steel International - UAE
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- London Commodity Brokers - England
- Siam City Cement - Thailand
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Antam Resourcindo - Indonesia
- Posco Energy - South Korea
- Krishnapatnam Port Company Ltd. - India
- Orica Australia Pty. Ltd.
- Meenaskhi Energy Private Limited - India
- Energy Link Ltd, New Zealand
- European Bulk Services B.V. - Netherlands
- Romanian Commodities Exchange
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Miang Besar Coal Terminal - Indonesia
- India Bulls Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- LBH Netherlands Bv - Netherlands
- Toyota Tsusho Corporation, Japan
- Indian Energy Exchange, India
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- White Energy Company Limited
- Sical Logistics Limited - India
- Kumho Petrochemical, South Korea
- Parliament of New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Goldman Sachs - Singapore
- Ministry of Finance - Indonesia
- IEA Clean Coal Centre - UK
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Larsen & Toubro Limited - India
- Lanco Infratech Ltd - India
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- CNBM International Corporation - China
- Rashtriya Ispat Nigam Limited - India
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Electricity Authority, New Zealand
- Samtan Co., Ltd - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Australian Coal Association
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- Carbofer General Trading SA - India
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Vedanta Resources Plc - India
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Parry Sugars Refinery, India
- Directorate Of Revenue Intelligence - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mintek Dendrill Indonesia
|
| |
| |
|
