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.
|
|
Tuesday, 12 May 15
FOB INDONESIA COAL SWAP; DECLINED M-O-M AND W-O-W
COALspot.com: Indonesian coal swap for delivery Q3 2015 lost week over week and month on month, this past week.
The Q3 swap was declined US$ 0 ...
Tuesday, 12 May 15
FOB RICHARDS BAY COAL SWAPS: LOST W-O-W; GAIN M-O-M
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q3' 2015 increased month over month and decreased week over week.
The Q3 swap h ...
Monday, 11 May 15
DRY BULK CARRIER ORDERS CRASH TO A TWENTY YEAR LOW - CLARKSONS
In the last four months dry bulk orders have fallen to 0.4m dwt per month, the lowest level since the 1990s. This is a massive 98% reduction from t ...
Monday, 11 May 15
HBA PRICE DIPS FURTHER; LOWEST RECORDED SINCE JANUARY 2009
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down Indonesian coal benchmark prices to US$ 61.08 per MT in May ...
Monday, 11 May 15
API 5 FOB NEWCASTLE COAL SWAP; INCREASED M-O-M; DECLINED W-O-W
COALspot.com: API 5 FOB Newcastle Coal swap for Q3’ 2015 delivery gained US$ 0.62 per MT (1.41%) month over month and lost US$ 0.88 week on w ...
|
|
|
Showing 3026 to 3030 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- Meralco Power Generation, Philippines
- Larsen & Toubro Limited - India
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- London Commodity Brokers - England
- Chettinad Cement Corporation Ltd - India
- Economic Council, Georgia
- Eastern Coal Council - USA
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kaltim Prima Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Kideco Jaya Agung - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- Malabar Cements Ltd - India
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Australian Coal Association
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- PowerSource Philippines DevCo
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Trasteel International SA, Italy
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Agrawal Coal Company - India
- Bulk Trading Sa - Switzerland
- Power Finance Corporation Ltd., India
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Electricity Authority, New Zealand
- Indo Tambangraya Megah - Indonesia
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Gujarat Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Formosa Plastics Group - Taiwan
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- MS Steel International - UAE
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Manunggal Multi Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- GMR Energy Limited - India
- OPG Power Generation Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Miang Besar Coal Terminal - Indonesia
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- SMC Global Power, Philippines
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Romanian Commodities Exchange
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Madhucon Powers Ltd - India
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- Parry Sugars Refinery, India
- Attock Cement Pakistan Limited
- Indogreen Group - Indonesia
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Grasim Industreis Ltd - India
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- International Coal Ventures Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Bhushan Steel Limited - India
- Central Java Power - Indonesia
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Metalloyd Limited - United Kingdom
- Savvy Resources Ltd - HongKong
- Sree Jayajothi Cements Limited - India
- Altura Mining Limited, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Africa Commodities Group - South Africa
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Planning Commission, India
- Tamil Nadu electricity Board
- Price Waterhouse Coopers - Russia
- Aditya Birla Group - India
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Star Paper Mills Limited - India
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- McConnell Dowell - Australia
- Pendopo Energi Batubara - Indonesia
- Lanco Infratech Ltd - India
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Commonwealth Bank - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- LBH Netherlands Bv - Netherlands
- IHS Mccloskey Coal Group - USA
- Sindya Power Generating Company Private Ltd
- Goldman Sachs - Singapore
- Singapore Mercantile Exchange
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- San Jose City I Power Corp, Philippines
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Siam City Cement - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- Ind-Barath Power Infra Limited - India
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Orica Mining Services - Indonesia
- Antam Resourcindo - Indonesia
|
| |
| |
|
