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Sunday, 26 January 20
SHIPPING NEEDS TO PREPARE FOR CORONAVIRUS RESTRICTIONS WARNS HILL DICKINSON
 The shipping industry needs to be prepared for potential restrictions in order to prevent the further spread of the ‘Wuhan’ coronavirus, advises a leading maritime law firm.
Preparation for potential escalation is needed advises Beth Bradley, a Partner with Hill Dickinson, who says that shipping should be prepared to face the same issues that arose in previous severe disease outbreaks, such as with other coronaviruses or Ebola, such as infection of crew members, quarantine measures, closure of ports, and possible repercussions on charterparty obligations.
“While this outbreak is not currently anticipated to cause the global complications experienced by the Ebola and Sars outbreaks, it is wise for ship operators and charterers to be prepared for any greater spread of this virus,” she says.
Quarantine and Deviation
Delays caused by quarantines and deviations have a different impact under charterparties. In relation to the safety of the crew, employers have a duty of care towards the crew under their employment contracts, and a breach of such a duty may lead to exposure to a variety of claims.
Under time charterparties, when a vessel is delayed by a quarantine or is forced to deviate due to an infected crew member, the vessel may be placed off-hire, subject to the wording of the charter. Common wordings of charterparties have been held to place the vessel off-hire due to legal or administrative restraints if they related to the efficiency or condition of the vessel or crew. In spite of this, should the delay be the inevitable result of orders resulting from how the charterers chose to employ the vessel, the vessel may remain on hire. The outcome in each case will depend on the facts and the wording of the charterparty.
Under voyage charters, a deviation for the safety of the crew will be at the shipowner’s expense as no additional freight may be payable unless, under the Hague or Hague-Visby Rules, a “reasonable deviation” defence is successfully raised.
NOR and Free Pratique
In order to commence laytime under a voyage charterparty, owners need to tender a valid Notice of Readiness (NOR). For owners to do so, a vessel requires free pratique. Absent wording to the contrary in the charterparty, everyday practice provides that a Master can give a valid NOR without having first obtained free pratique, provided that there is no reason to assume that it is anything other than a mere formality.
However, in cases of an outbreak, a vessel may be subject to quarantine delays, such that the assumption that the vessel will be able to obtain free pratique will not be a mere formality. If a vessel is calling or has called in an infected area, special protective measures may cause delays until the health of the crew is ascertained. The risk of such delays until a valid NOR is capable of being tendered is borne by the owner, unless the charterparty provides otherwise.
Safe Port Warranty
Under a charterparty, charterers are under an obligation to nominate a safe port, an order with which the shipowners must comply with unless there is an unacceptable risk, or the port is known to be unsafe. Risks to the crew may render a port unsafe even where there is no risk of real damage to the vessel. Consequently, a contagious disease may legally make a port unsafe.
The safety of a port depends greatly on whether proper precautions and protective measures are in place to ensure that a vessel can call at the port without risking infection of its crew. Such measures were taken during both the Ebola and MERS outbreaks, and numerous ports remained open despite being affected by the outbreak.
At present, the Wuhan virus is not at a stage where it may render a port unsafe, and the severity of the outbreak would need to escalate significantly before owners could reasonably refuse to call at scheduled or nominated ports on the basis of the ports being unsafe.
Force majeure
A standard force majeure clause suspends and/or terminates the contract on the occurrence of an extraordinary event beyond the parties’ reasonable control, which materially affects the parties’ ability to perform their contractual obligations. Such an occurrence should not reasonably have been foreseen or provided against.
John Agapitos, Hill Dickinson paralegal, adds: At this time, there have only been internal transport bans affecting certain Chinese cities around the centre of the outbreak. There has not yet been a travel ban to China or any other neighbouring countries. It is unlikely that any given situation will fall within the scope of a force majeure clause, unless the wording of a particular clause is quite broadly drafted. However, if the outbreak escalates in the future and/or travel bans are imposed, questions of whether it amounts to a force majeure event may come to the fore.”
Source: Hill Dickinson
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Sunday, 26 January 20
SUPRAMAX: THE ASIAN BASIN SAW A 56,000DWT SHIP FIXING DELIVERY SAMARINDA TRIP TO WEST COAST INDIA AT $4,750 - BALTIC BRIEFING
Capesize
The market endured heavy losses throughout the past week, with the Capesize 5TC dropping from $8,352 to $4,772. In the lead up to Chin ...
Friday, 24 January 20
LOW-SULPHUR FUEL OIL PRICES DROP USD 99 PER MT IN SINGAPORE - BIMCO
Singapore has seen one of the largest drops in the price of Very Low Sulphur Fuel Oil (VLSFO), which peaked on 7 January 2020 at USD 740 per metric ...
Friday, 24 January 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINED FLAT DURING THE PAST WEEK - XINHUA
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, stood at 553 yuan (about 80.1 U.S. dollars) ...
Thursday, 23 January 20
PANAMAX: ANOTHER DISAPPOINTING WEEK IN BOTH THE ATLANTIC AND THE PACIFIC BASIN - FEARNLEYS
Cape Size
From bad to worse for the biggest ships as prices for low-sulphur fuel oil remain high whilst freight rates deteriorate further. Aver ...
Thursday, 23 January 20
AFRICAN POWER PLATFORM PUBLISHES REPORTS ON POWER SECTOR FRAMEWORK FOR SELECTED AFRICAN COUNTRIES
Press Release: African Power Platform publishes Reports on Power Sector Framework for selected African Countries
With the repo ...
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- Petron Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Karaikal Port Pvt Ltd - India
- Power Finance Corporation Ltd., India
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- The University of Queensland
- Thai Mozambique Logistica
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- Sree Jayajothi Cements Limited - India
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- Bhoruka Overseas - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Sical Logistics Limited - India
- Parliament of New Zealand
- Singapore Mercantile Exchange
- Gujarat Mineral Development Corp Ltd - India
- ICICI Bank Limited - India
- Global Business Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- Marubeni Corporation - India
- Romanian Commodities Exchange
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Commonwealth Bank - Australia
- Wood Mackenzie - Singapore
- Salva Resources Pvt Ltd - India
- Sojitz Corporation - Japan
- White Energy Company Limited
- Eastern Coal Council - USA
- Makarim & Taira - Indonesia
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Vizag Seaport Private Limited - India
- Borneo Indobara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Therma Luzon, Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Minerals Council of Australia
- Mjunction Services Limited - India
- Uttam Galva Steels Limited - India
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- Deloitte Consulting - India
- Pipit Mutiara Jaya. PT, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Price Waterhouse Coopers - Russia
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Meralco Power Generation, Philippines
- Carbofer General Trading SA - India
- Pendopo Energi Batubara - Indonesia
- CNBM International Corporation - China
- Gujarat Sidhee Cement - India
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Simpson Spence & Young - Indonesia
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- MS Steel International - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Antam Resourcindo - Indonesia
- Barasentosa Lestari - Indonesia
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Independent Power Producers Association of India
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- Leighton Contractors Pty Ltd - Australia
- Parry Sugars Refinery, India
- Billiton Holdings Pty Ltd - Australia
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Banpu Public Company Limited - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Edison Trading Spa - Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Attock Cement Pakistan Limited
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Heidelberg Cement - Germany
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Toyota Tsusho Corporation, Japan
- Dalmia Cement Bharat India
- Bukit Makmur.PT - Indonesia
- Cement Manufacturers Association - India
- TNB Fuel Sdn Bhd - Malaysia
- SMG Consultants - Indonesia
- Australian Coal Association
- Maheswari Brothers Coal Limited - India
- Rio Tinto Coal - Australia
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- Essar Steel Hazira Ltd - India
- Electricity Authority, New Zealand
- PNOC Exploration Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Thiess Contractors Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Coal and Oil Company - UAE
- Jindal Steel & Power Ltd - India
- Ministry of Transport, Egypt
- Global Coal Blending Company Limited - Australia
- Sindya Power Generating Company Private Ltd
- Sarangani Energy Corporation, Philippines
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- Merrill Lynch Commodities Europe
- LBH Netherlands Bv - Netherlands
- Kapuas Tunggal Persada - Indonesia
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- SN Aboitiz Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- Kepco SPC Power Corporation, Philippines
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- VISA Power Limited - India
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement PLC, Thailand
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Africa Commodities Group - South Africa
- Ceylon Electricity Board - Sri Lanka
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