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, 24 May 13
OPG POWER VENTURES OF INDIA LOOKING FOR 210,000 MT OF 4,200 GAR INDONESIAN THERMAL COAL
COALspot.com - OPG Power Ventures Plc (OPG) is an AIM listed (London Stock Exchange) and fast growing developer and operator of power plants in Indi ...
Thursday, 23 May 13
HANDY : THE ATLANTIC MARKET REMAINS UNCHANGED - FEARNRESEARCH
Handy
The Atlantic market remains unchanged. USG-Feast rates were around USD 19k. Little change from last week in the Pacific, fewer stems and tonn ...
Thursday, 23 May 13
COLOMBIA SHIPPED 11.74 MILLION TONS OF THERMAL COAL IN Q1
COALspot.om - Colombia produced about 18,388,972.94 mt of coal for the first quarter of 2013.
Q1' 2013 coal production was around 21.42 p ...
Wednesday, 22 May 13
COKAL SIGNS JV WITH MDM, FOR BARITO RIVER BARGING
COALspot.com - Cokal Limited (ASX: CKA) has announced that it has entered into a 50:50 Joint Venture (JV) with Meratus Advance Maritime (MDM) one of ...
Tuesday, 21 May 13
NEWCASTLE PORT COAL SHIPMENTS SEEN FALLING WEEK ON WEEK
COALspot.com - Newcastle port in Australia has loaded 2,205,024 tons of thermal and coking coal for week ended 0700 hours 20 May 2013, Newcast ...
|
|
|
Showing 4271 to 4275 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Kideco Jaya Agung - Indonesia
- PowerSource Philippines DevCo
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Merrill Lynch Commodities Europe
- Attock Cement Pakistan Limited
- Commonwealth Bank - Australia
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Heidelberg Cement - Germany
- Sindya Power Generating Company Private Ltd
- Indika Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wilmar Investment Holdings
- Planning Commission, India
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- SMG Consultants - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Price Waterhouse Coopers - Russia
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- European Bulk Services B.V. - Netherlands
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- MS Steel International - UAE
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Binh Thuan Hamico - Vietnam
- Latin American Coal - Colombia
- Straits Asia Resources Limited - Singapore
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Chamber of Mines of South Africa
- AsiaOL BioFuels Corp., Philippines
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Energy Link Ltd, New Zealand
- Altura Mining Limited, Indonesia
- Indian Energy Exchange, India
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Makarim & Taira - Indonesia
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- Posco Energy - South Korea
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Karaikal Port Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- Romanian Commodities Exchange
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Business Power Corporation, Philippines
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Goldman Sachs - Singapore
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Bhushan Steel Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- Ministry of Mines - Canada
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Global Coal Blending Company Limited - Australia
- Carbofer General Trading SA - India
- ICICI Bank Limited - India
- Cigading International Bulk Terminal - Indonesia
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Metalloyd Limited - United Kingdom
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- Rashtriya Ispat Nigam Limited - India
- Maheswari Brothers Coal Limited - India
- Economic Council, Georgia
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- New Zealand Coal & Carbon
- Sojitz Corporation - Japan
- Cement Manufacturers Association - India
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Star Paper Mills Limited - India
- Lanco Infratech Ltd - India
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Videocon Industries ltd - India
- LBH Netherlands Bv - Netherlands
- Global Green Power PLC Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- White Energy Company Limited
- Indogreen Group - Indonesia
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Xindia Steels Limited - India
- Jindal Steel & Power Ltd - India
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- CNBM International Corporation - China
- The Treasury - Australian Government
- PetroVietnam Power Coal Import and Supply Company
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Vedanta Resources Plc - India
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Eastern Energy - Thailand
- Minerals Council of Australia
- The State Trading Corporation of India Ltd
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Sree Jayajothi Cements Limited - India
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- Aboitiz Power Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- GMR Energy Limited - India
- Coastal Gujarat Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- Bharathi Cement Corporation - India
- Orica Australia Pty. Ltd.
- Madhucon Powers Ltd - India
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Mercator Lines Limited - India
- Mercuria Energy - Indonesia
|
| |
| |
|
