We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 08 December 15
HOW TO MITIGATE LEGAL RISKS WHEN PURCHASING BUNKERS - LESSONS LEARNED FROM THE OW BUNKER COLLAPSE - THE SWEDISH CLUB
 KNOWLEDGE TO ELEVATE
About a year has passed since OW Bunker & Trading A/S filed for bankruptcy. The collapse shows that there are significant risks for shipowners and charterers in using intermediaries for the supply of bunkers. On the one hand the intermediary issues an invoice in capacity as the contractual supplier and should be paid for the bunkers. On the other hand do physical suppliers in some jurisdictions have an independent right to claim the vessel for unpaid bunkers. As a result, there is an inherent risk for competing claims against vessels to the extent the intermediary fails to pass on the payment to the physical supplier.
The collapse of OW Bunker has not only generated disputes involving competing claims against vessel owners by contractual suppliers and physical suppliers, but also charterparty disputes between owners and charterers. The Club’s FD&D lawyers presently handle about 40 cases involving disputes following the collapse of OW Bunkers. The total sum of these disputes is in excess of USD 20 million. The legal issues are complex and case specific. For instance, it has been argued that OW Bunker or their assignees cannot claim payment at all under English law since they never owned the bunkers for which they issued an invoice. This argument was recently dismissed by the English Court of Appeal, see the Club’s Member Alert of 23 October 2015. In addition, a court decision in one country may not apply in another country. Therefore, as of today, no universal solution to the underlying dilemma with competing claims is in sight.
The OW Bunker collapse has generated important lessons for the future. The following steps may be taken by owners and charterers in order to bring contractual clarity in relation to the supply of bunkers, as well as mitigate the risk for competing claims:
Insert BIMCOs non-lien clause in the charterparty, see Special Circular from BIMCO.
Prior to ordering bunkers, the supplier should be provided with the following notice (this is linked to the above non-lien clause):
To: Bunker Sellers (Name, address and contact details)
Take note that we, (Charterers: Name, address and contact details) are today (date) ordering (specification of) bunkers for supply at (port or place) on or about (date) on our account and our credit to MV/MT………… on charter to us and that the bunkers to be supplied to the Vessel are solely for our account as Charterers and that neither the Vessel, the Owners nor the Master is a party to the bunker supply contract and no lien, encumbrance or any rights shall arise on the Vessel.
Yours faithfully
Charterers of MV/MT………
Avoid any reference on the Bunker Delivery Receipt to the physical supplier’s own Terms and Conditions in order to avoid creating a direct contract between the vessel owner and the supplier.
Stamp and sign the Bunker Delivery Receipt with the following wording:
Vessel…………………
This bunker supply is for account of vessel’s time charterers, Messrs………………
I herewith declare that neither owners / bareboat charterers nor the vessel are responsible for payment of this supply and no lien or other claim against the vessel can therefore arise.
Date:
……………………………………………………………
Master / Chief Engineer
Explore possibilities to take out insurance to protect against the risk of charterer (or bunker intermediary) insolvency
As mentioned above, the use of a bunker intermediary will entail an enhanced risk in relation to the supply of bunkers. Members may therefore consider agreeing to only deal with physical bunker suppliers directly and, if so, a provision to that effect should be inserted in any time charterparty.
In the event an intermediary is used the following precautionary steps can be taken:
Endeavour to ensure that the intermediary has an appropriate credit insurance.
Endeavour to agree to pay the intermediary the profit element only by way of paying the physical supplier separately, or by way of making one payment to the intermediary which is split into two; the intermediary receives the profit element as principal and the substantive sum as agent for the physical supplier. At least the first alternative needs to be expressed in the contract with the intermediary.
Endeavour to ensure that the ultimate buyer has the longest credit period in the contractual chain by way of a term in the contract with the intermediary that the intermediary has to first pay their supplier in full for the bunkers before the ultimate buyer is obliged to pay them.
Finally, a word of caution. There is no magic answer which will eliminate all legal risks in relation to the supply of bunkers. All situations differ and there are different parties involved in supply chains. However, the above constitute steps that owners and charterers can take to try to mitigate those risks as much as possible, in appropriate circumstances. It is acknowledged that the steps may be difficult to take in practice.
Source: The Swedish Club | Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 10 February 16
OWNERS APPEAR WILLING TO DISPOSE OF TONNAGE THE SOONEST IT HITS THE 10 YEAR MARK - TIMOS PAPADIMITRIOU
COALspot.com: The last two months of 2015 made a case for traditional shipowners to invest in the dry bulk sector, doing so though based purely on ...
Monday, 08 February 16
DRY-BULK SHIPPING DIVING DEEP
COALspot.com: The freight markets continued to fall this past week.
The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measure of glo ...
Monday, 08 February 16
DRY BULK: SHIPBROKER SEES BDI MARKET REACHING LOW POINT OF 236 POINTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The endless pit that is the dry bulk market over the past two months, has been the issue of debate among ship owners, shipbroker and analysts alike ...
Friday, 05 February 16
COAL INDIA EYES COAL MINES IN SOUTH AFRICA - PTI
“Coal India Ltd has plans of acquiring coal mines in South Africa,” an official said. It is looking at acquiring mines in partnership w ...
Friday, 05 February 16
U.S. WEEKLY COAL OUTPUT ROSE 4.2% TO 13.6 MMST
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.6 million shor ...
|
|
|
Showing 2571 to 2575 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- Uttam Galva Steels Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- TNB Fuel Sdn Bhd - Malaysia
- Barasentosa Lestari - Indonesia
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Mercator Lines Limited - India
- Bhatia International Limited - India
- PTC India Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- White Energy Company Limited
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
- The University of Queensland
- Iligan Light & Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Bhoruka Overseas - Indonesia
- Goldman Sachs - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- Australian Coal Association
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Medco Energi Mining Internasional
- Thiess Contractors Indonesia
- Orica Mining Services - Indonesia
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Romanian Commodities Exchange
- Planning Commission, India
- MS Steel International - UAE
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- Larsen & Toubro Limited - India
- CNBM International Corporation - China
- Mjunction Services Limited - India
- Minerals Council of Australia
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- CIMB Investment Bank - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- Heidelberg Cement - Germany
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Globalindo Alam Lestari - Indonesia
- Coalindo Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- SN Aboitiz Power Inc, Philippines
- Interocean Group of Companies - India
- International Coal Ventures Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Carbofer General Trading SA - India
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Lanco Infratech Ltd - India
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Indian Oil Corporation Limited
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- Renaissance Capital - South Africa
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- Eastern Energy - Thailand
- Global Coal Blending Company Limited - Australia
- Jaiprakash Power Ventures ltd
- Bhushan Steel Limited - India
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Posco Energy - South Korea
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- Altura Mining Limited, Indonesia
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- Xindia Steels Limited - India
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Simpson Spence & Young - Indonesia
- Attock Cement Pakistan Limited
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Africa Commodities Group - South Africa
- GVK Power & Infra Limited - India
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Kepco SPC Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Wilmar Investment Holdings
- Thai Mozambique Logistica
- Therma Luzon, Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Billiton Holdings Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- Rio Tinto Coal - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- Bangladesh Power Developement Board
- Indo Tambangraya Megah - Indonesia
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- OPG Power Generation Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Indian Energy Exchange, India
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Tamil Nadu electricity Board
- Oldendorff Carriers - Singapore
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Rashtriya Ispat Nigam Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Siam City Cement - Thailand
- Economic Council, Georgia
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
|
| |
| |
|
