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.
|
|
Thursday, 23 September 21
RECORD-HIGH GAS PRICES AFFECT MANY EUROPEAN CORPORATE SECTORS - FITCH RATINGS
Record-high natural gas prices are putting pressure on supply chains of many European corporate sectors, including non-integrated energy suppliers, ...
Wednesday, 22 September 21
MARKET INSIGHT - INTERMODAL
The unfolding last week of a trilateral defence pact between the United States, Australia, the United Kingdom (AUKUS) envisages a wide range of col ...
Tuesday, 21 September 21
CHINESE COAL IMPORTS FROM AUSTRALIA DROP 98.6% AS RESTRICTIONS BITE - BIMCO
In the first seven months of the year Chinese coal imports from Australia have totalled just 780,000 tonnes as Chinese restrictions on Australian c ...
Tuesday, 21 September 21
CHINA'S COAL OUTPUT RESUMES GROWTH IN AUGUST - XINHUA
China’s raw coal output rose 0.8 percent year on year to 340 million tonnes last month, official data showed.
The growth rate ...
Wednesday, 15 September 21
MARKET INSIGHT - INTERMODAL
Following the oil price sell off during most of August, partly triggered by oil demand fears amid the delta COVID variant, oil prices have resumed ...
|
|
|
Showing 481 to 485 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Formosa Plastics Group - Taiwan
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- Bayan Resources Tbk. - Indonesia
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Chamber of Mines of South Africa
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Planning Commission, India
- Alfred C Toepfer International GmbH - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- The University of Queensland
- Kapuas Tunggal Persada - Indonesia
- Eastern Coal Council - USA
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Indo Tambangraya Megah - Indonesia
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Karaikal Port Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kepco SPC Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Savvy Resources Ltd - HongKong
- Bahari Cakrawala Sebuku - Indonesia
- Sinarmas Energy and Mining - Indonesia
- TeaM Sual Corporation - Philippines
- Metalloyd Limited - United Kingdom
- McConnell Dowell - Australia
- Semirara Mining Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Wilmar Investment Holdings
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Wood Mackenzie - Singapore
- Rashtriya Ispat Nigam Limited - India
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Siam City Cement PLC, Thailand
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- London Commodity Brokers - England
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Cigading International Bulk Terminal - Indonesia
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- Global Green Power PLC Corporation, Philippines
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- Merrill Lynch Commodities Europe
- Posco Energy - South Korea
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- Meralco Power Generation, Philippines
- Renaissance Capital - South Africa
- Lanco Infratech Ltd - India
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rio Tinto Coal - Australia
- SN Aboitiz Power Inc, Philippines
- Indonesian Coal Mining Association
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Romanian Commodities Exchange
- Vedanta Resources Plc - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- European Bulk Services B.V. - Netherlands
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Maheswari Brothers Coal Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Electricity Authority, New Zealand
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Samtan Co., Ltd - South Korea
- Sarangani Energy Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- Grasim Industreis Ltd - India
- Dalmia Cement Bharat India
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- GMR Energy Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Cement Manufacturers Association - India
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement - Thailand
- Vizag Seaport Private Limited - India
- Star Paper Mills Limited - India
- Straits Asia Resources Limited - Singapore
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Malabar Cements Ltd - India
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Anglo American - United Kingdom
- Sojitz Corporation - Japan
- Madhucon Powers Ltd - India
- Port Waratah Coal Services - Australia
- Xindia Steels Limited - India
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Carbofer General Trading SA - India
- Toyota Tsusho Corporation, Japan
- Antam Resourcindo - Indonesia
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Tata Chemicals Ltd - India
- Baramulti Group, Indonesia
- Medco Energi Mining Internasional
- Binh Thuan Hamico - Vietnam
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- Interocean Group of Companies - India
- Ministry of Transport, Egypt
|
| |
| |
|
