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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 it can lien the cargo on board the chartered vessel to obtain payment voluntarily, or by court sale if necessary.
This often involves looking at a Congenbill bill of lading and establishing whether a charterparty lien clause applies via Clause (1) on the reverse, which incorporates all “terms and conditions, liberties and exceptions of the Charterparty, dated as overleaf”. Problems arise when:
- there is no date overleaf and there are a number of charterparties in a chain, any of which could apply; or
- there are a number of charterparties in the chain with the same date as overleaf.
The question then becomes which charterparty lien clause to apply and to what debt to apply it.
Charterparty liens under English law
As a matter of English law, the absence of a date overleaf on the face of the Congenbill does not prevent a charterparty from being incorporated. Where there is only one charter, direct with the head owner, there is no doubt as to its application. However, the situation becomes complicated if there is:
- a head time charter;
- a sub-time charter;
- a head voyage charter; and
- a sub-voyage charter.
Which of these four charters is to be incorporated? An owner will normally assert that the head charter should be incorporated (ie, because it has signed it). Likewise, a receiver under the bill will usually argue for the sub-voyage charter – again, because this was the contract that it knew of when arranging the shipment. However, English law points in a different direction.
The starting point is that under a time charter, the time charterer has power over the issue of the bill of lading, provided that this reflects the mate’s receipts. The time charterer also has the authority to give orders to the master and direct the vessel in its commercial business. As such, the charterparty of greatest influence on the voyage is likely to have a time charterer as one of the parties.
However, insofar as the Congenbill concerns only a single voyage, the charterparty likely to be most relevant will be a voyage charter. As such, English law hesitantly arrives at the position that the applicable charterparty is that in which a time charterer is acting as disponent owner, with the head voyage charterer as its counterparty. In other words, in the above scenario, the terms of the head voyage charter between the sub-time charterer and the head voyage charterer will be incorporated into the Congenbill.
This raises a further question: if the bill of lading is an owner’s bill made between the head owner and receiver, how can a lien in the head voyage charter be applied to that bill when it refers to freight due to the sub-time charterer, which is not a party to the bill? Does the fact that the freight subject to the lien will not be paid to the head owner bar exercise of the lien? English law suggests not. Provided that the freight is still due to be paid by the head voyage charterer to the sub-time charterer, the sub-time charterer can direct the head time charterer to direct the head owner to exercise the lien on its behalf (against its indemnity for the costs, expenses and potential liabilities involved). The head owner acts as a form of trustee in such a lien and accounts to the time charterer for any payments received as a consequence of the lien.
Persuading the head owner to take such steps can be difficult, particularly if it has been paid hire in full and has no personal interest in collecting the freight for the time charterer.
However, if the head owner does not exercise a formal lien, it might face an order from the time charterer to stop the vessel in an attempt to obtain payment. The head owner might argue that this puts it in breach of the Congenbill as against the receiver, to which the time charterer might reply that it has the right to give orders (including the right to order the head owner on how to exercise rights under the bill of lading), so if the head owner refuses, it is in breach. The respective rights and wrongs of such a showdown would be complex; but faced with this situation, a head owner may prefer to exercise the lien itself as trustee to protect itself from claims under the bill of lading from the receiver – particularly if it obtains an indemnity from the time charterer in the process.
Comment
As in all charterparty matters, generalisations are interesting, but the individual circumstances of each dispute must be carefully checked to see whether they apply. Bearing that in mind, when it comes to liening cargo under a Congenbill, it seems that English law will look first to the head voyage charterparty as the source of relevant terms to be incorporated into the Congenbill (unless another charter is expressly identified), and this is likely to lead to a less-than-obvious outcome.
Source: Wikborg Rein | Hellenic Shipping News
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Saturday, 26 December 15
FOB INDONESIA COAL SWAPS KEEP DROPPING
COALspot.com: Indonesian coal swap delivery Q1 2016 declined month on month and week over week.
According to AsiaClear OTC coal swap's rep ...
Friday, 25 December 15
WEEKLY US COAL PRODUCTION ESTIMATES DIP 8.5%
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 14.7 million shor ...
Thursday, 24 December 15
Q3' 16 FOB RICHARDS BAY COAL SWAP SHED US$ 0.60 PER TON OVER WEEK, AND STANDS AT US$ 43.25 PER TON
COALspot.com: Q1’ 2016 API4 FOB Richards Bay Coal swap decline month over month and slightly up week over week.
The Q1’ 2016 FOB R ...
Thursday, 24 December 15
GLOBAL MARINE FUEL REGULATIONS COULD SHOCK REFINING AND OIL MARKETS - OPEC | HELLENIC SHIPPING NEWS
IMO regulations call for global standards for sulphur content in marine fuel to be tightened to 0.5% from its present 3.5%. There is uncertainty ov ...
Thursday, 24 December 15
DRY BULKERS' VALUES ARE PLUNGING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Dry bulk carriers’ values are falling across the board, as the fall of freight rates is taking its toll, as is to be expected. In fact, accor ...
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Showing 2636 to 2640 news of total 6871 |
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- Baramulti Group, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Semirara Mining and Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Carbofer General Trading SA - India
- Power Finance Corporation Ltd., India
- Kaltim Prima Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Makarim & Taira - Indonesia
- Savvy Resources Ltd - HongKong
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Renaissance Capital - South Africa
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Indogreen Group - Indonesia
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- Marubeni Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- Coastal Gujarat Power Limited - India
- Bhushan Steel Limited - India
- Sojitz Corporation - Japan
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Siam City Cement PLC, Thailand
- Uttam Galva Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- Economic Council, Georgia
- Minerals Council of Australia
- Mintek Dendrill Indonesia
- Antam Resourcindo - Indonesia
- Directorate Of Revenue Intelligence - India
- Medco Energi Mining Internasional
- Kumho Petrochemical, South Korea
- Oldendorff Carriers - Singapore
- Heidelberg Cement - Germany
- Binh Thuan Hamico - Vietnam
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- ASAPP Information Group - India
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Jaiprakash Power Ventures ltd
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Meralco Power Generation, Philippines
- Barasentosa Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Global Green Power PLC Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Eastern Energy - Thailand
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Aboitiz Power Corporation - Philippines
- White Energy Company Limited
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Bhatia International Limited - India
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Parry Sugars Refinery, India
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- VISA Power Limited - India
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- Sinarmas Energy and Mining - Indonesia
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- Wilmar Investment Holdings
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Independent Power Producers Association of India
- International Coal Ventures Pvt Ltd - India
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Romanian Commodities Exchange
- MS Steel International - UAE
- Bukit Baiduri Energy - Indonesia
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Central Electricity Authority - India
- Siam City Cement - Thailand
- Indian Oil Corporation Limited
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coalindo Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Petron Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meenaskhi Energy Private Limited - India
- Mercator Lines Limited - India
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Aditya Birla Group - India
- PetroVietnam Power Coal Import and Supply Company
- Jindal Steel & Power Ltd - India
- Samtan Co., Ltd - South Korea
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- ICICI Bank Limited - India
- Ind-Barath Power Infra Limited - India
- Chamber of Mines of South Africa
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- Agrawal Coal Company - India
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- Central Java Power - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- The University of Queensland
- IEA Clean Coal Centre - UK
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- PowerSource Philippines DevCo
- Vijayanagar Sugar Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Deloitte Consulting - India
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- PTC India Limited - India
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- Kepco SPC Power Corporation, Philippines
- Indika Energy - Indonesia
- Parliament of New Zealand
- Star Paper Mills Limited - India
- Holcim Trading Pte Ltd - Singapore
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Trasteel International SA, Italy
- Larsen & Toubro Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Eastern Coal Council - USA
- Formosa Plastics Group - Taiwan
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