We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 01 April 19
FORCE MAJEURE SUCCESS NOT A SEA CHANGE - BALTIC EXCHANGE
 KNOWLEDGE TO ELEVATE
It is difficult to successfully argue that contractual performance has been prevented or delayed by force majeure. This is in part because English courts or arbitration tribunals will interpret these clauses strictly and narrowly against the party seeking to rely on them.
Recent decisions, including Triple Point Technology v PTT (2017) and Seadrill Ghana v Tullow Ghana (2018), are evidence of this approach. However, Sucden Middle-East, represented by Nick Fisher of HFW, has recently relied successfully on such a clause in the Commercial Court, on appeal from arbitration.
The case, Sucden Middle-East v Yagci Denizcilik Ve Ticaret Limited Sirketi, “The Mv Muammer Yagci”, involved a shipment of sugar to Algeria on the Sugar Charter Party 1999 form. The facts found by the arbitral tribunal were that when the cargo arrived in Algeria, the cargo-receivers submitted false import documents to local customs authorities. The local customs responded by seizing the cargo, using powers under customs laws and regulations.
A delay to discharging the cargo of four and a half months ensued. Sucden, as charterers, claimed this delay fell within the exceptions to laytime running under clause 28. Owners disagreed. At first instance, the arbitral tribunal agreed with owners.
Charterers appealed to the Commercial Court. Permission to bring the appeal was given on the basis that the question of law was one of general public importance, as it related to a standard form contract in wide commercial usage.
The judgement
The question before the Commercial Court was: “Where a cargo is seized by the local customs authorities at the discharge port causing a delay to discharge, is the time so lost caused by ‘government interferences’ within the meaning of clause 28 of the Sugar Charter Party 1999 form?” Clause 28 reads:
“Strikes and Force Majeure
In the event that whilst at or off the loading place or discharging place the loading and/or discharging of the vessel is prevented or delayed by any of the following occurrences: strikes, riots, civil commotions, lockouts of men, accidents and/or breakdowns on railways, stoppages on railway and/or river and/or canal by ice or frost, mechanical breakdowns at mechanical loading plants, government interferences, vessel being inoperative or rendered inoperative due to terms and conditions of employment of the Officers and Crew, time so lost shall not count as laytime on demurrage or detention…”
In deciding whether a force majeure event had occurred, the Court focused on the construction of “government interferences”. It was fairly straightforward to establish that a government entity acting in a sovereign capacity was involved, but owners argued that the government being involved was not enough and that there had to be “interferences”. In reaching its decision that there had been no interference, the tribunal had considered it a key point that seizure was an “ordinary” action. The Court rejected this conclusion. It held that the seizure of the cargo was not routine and did fall within the meaning of “interferences”. Seizure is a significant exercise of executive power and therefore could not be regarded as “ordinary”. Suspected or predictable consequences are not the same as ordinary actions (such as the inspection of the cargo by a government surveyor): “In the usual course of things, cargo is not seized and property rights are not invaded in that way.” The very fact that false documents were involved showed that the circumstances were not routine.
The Court emphasised that it was of “real importance” that its conclusion on the language was not difficult to apply, nor did it in any way offend commercial common sense.
The owners’ causation argument was also dismissed, as it was held that the seizure caused the delay, even if the submission of false documents caused the seizure.
Further detail
In allowing the appeal, the Court still maintained the strict and narrow approach to force majeure, stressing that “the answer given to the question is only a narrow ‘yes’. It is ‘yes’ where the circumstances are as in the present case. The answer does not address all of the circumstances that may come within or fall outside clause 28. The answer is concerned only with the seizure of a cargo and with that seizure by a customs authority that is a State revenue authority acting in a sovereign capacity”.
This judgment gives some welcome publicly-available guidance on the interpretation of a force majeure clause in a standard form widely used in sugar trading. While the charterers were successfully able to rely on the force majeure clause in this case, it does not signal a change in the strict and narrow approach typically adopted by the English courts.
Source: Baltic Exchange
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
|
|
|
Showing 41 to 45 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Neyveli Lignite Corporation Ltd, - India
- Indian Energy Exchange, India
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Thiess Contractors Indonesia
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Eastern Energy - Thailand
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Altura Mining Limited, Indonesia
- Central Electricity Authority - India
- OPG Power Generation Pvt Ltd - India
- The Treasury - Australian Government
- Standard Chartered Bank - UAE
- Tamil Nadu electricity Board
- Marubeni Corporation - India
- Coal and Oil Company - UAE
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Kohat Cement Company Ltd. - Pakistan
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- Maheswari Brothers Coal Limited - India
- SN Aboitiz Power Inc, Philippines
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- IEA Clean Coal Centre - UK
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bukit Makmur.PT - Indonesia
- Edison Trading Spa - Italy
- White Energy Company Limited
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Metalloyd Limited - United Kingdom
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Bulk Trading Sa - Switzerland
- Australian Coal Association
- Ministry of Transport, Egypt
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- International Coal Ventures Pvt Ltd - India
- Coalindo Energy - Indonesia
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- Mercuria Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Port Waratah Coal Services - Australia
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- Siam City Cement - Thailand
- Cigading International Bulk Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wilmar Investment Holdings
- Renaissance Capital - South Africa
- Economic Council, Georgia
- Bhushan Steel Limited - India
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Independent Power Producers Association of India
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Trasteel International SA, Italy
- Alfred C Toepfer International GmbH - Germany
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Finance - Indonesia
- Gujarat Sidhee Cement - India
- Indonesian Coal Mining Association
- TeaM Sual Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- LBH Netherlands Bv - Netherlands
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Essar Steel Hazira Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Salva Resources Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- Rio Tinto Coal - Australia
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- Petron Corporation, Philippines
- PTC India Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GAC Shipping (India) Pvt Ltd
- The State Trading Corporation of India Ltd
- Africa Commodities Group - South Africa
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- Aditya Birla Group - India
- Kaltim Prima Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Mjunction Services Limited - India
- South Luzon Thermal Energy Corporation
- Merrill Lynch Commodities Europe
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Sojitz Corporation - Japan
- New Zealand Coal & Carbon
- Binh Thuan Hamico - Vietnam
- Oldendorff Carriers - Singapore
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Dalmia Cement Bharat India
- CNBM International Corporation - China
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- MS Steel International - UAE
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Georgia Ports Authority, United States
- Anglo American - United Kingdom
- Toyota Tsusho Corporation, Japan
- Karaikal Port Pvt Ltd - India
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Antam Resourcindo - Indonesia
- Bangladesh Power Developement Board
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Deloitte Consulting - India
- Asmin Koalindo Tuhup - Indonesia
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- Bharathi Cement Corporation - India
|
| |
| |
|
