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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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Saturday, 18 January 20
GERMAN STEAM COAL IMPORTS IN 2019 PLUMMETED BY 17 % - COAL IMPORTERS ASSOCIATION
Press Release: According to preliminary calculations by the German Coal Importers Association (Verein der Kohlenimporteure e. V.), world trade in h ...
Saturday, 18 January 20
A 61,400 DWT FIXED FROM SOUTH EAST ASIA DELIVERY EAST KALIMANTAN REDELIVERY WEST COAST INDIA IN THE LOW $7,000S - BALTIC BRIEFING
Capesize
The market was relatively stable over this past week putting an end to the past months of more extreme declines. While the Capesize 5T ...
Friday, 17 January 20
EIA ESTIMATES THAT U.S. COAL PRODUCTION DECLINED BY 65 MMST (9%) TO 690 MMST IN 2019. IN 2020, COAL PRODUCTION WILL DECLINE BY A FURTHER 14% TO 597 MMST
U.S. Coal Supply.
EIA estimates that U.S. coal production declined by 65 million short tons (MMst) (9%) to 690 MMst in 2019. In 2020, EIA ...
Friday, 17 January 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index, a gauge of coal p ...
Thursday, 16 January 20
SUPRAMAX: INDO/CHINA ROUND VOYAGE FIXING AROUND LOW/MID USD 6,000 BSS APS INDO - FEARNLEYS
Capesize
Still very rough seas for the big ships, with the majority of the fleet trading Far East or fronthaul and consequently earning far les ...
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- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- GMR Energy Limited - India
- Georgia Ports Authority, United States
- Australian Commodity Traders Exchange
- The University of Queensland
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Energy Link Ltd, New Zealand
- Aditya Birla Group - India
- GVK Power & Infra Limited - India
- Singapore Mercantile Exchange
- Kideco Jaya Agung - Indonesia
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Sindya Power Generating Company Private Ltd
- Global Green Power PLC Corporation, Philippines
- London Commodity Brokers - England
- Eastern Coal Council - USA
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Thiess Contractors Indonesia
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Aboitiz Power Corporation - Philippines
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Australian Coal Association
- Manunggal Multi Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Planning Commission, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Global Business Power Corporation, Philippines
- Indian Oil Corporation Limited
- Port Waratah Coal Services - Australia
- Wood Mackenzie - Singapore
- Sarangani Energy Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- Xindia Steels Limited - India
- Star Paper Mills Limited - India
- Parliament of New Zealand
- Chamber of Mines of South Africa
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Indian Energy Exchange, India
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- Rio Tinto Coal - Australia
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- White Energy Company Limited
- Agrawal Coal Company - India
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- San Jose City I Power Corp, Philippines
- Trasteel International SA, Italy
- Ind-Barath Power Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Alfred C Toepfer International GmbH - Germany
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Attock Cement Pakistan Limited
- Banpu Public Company Limited - Thailand
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Transport, Egypt
- Oldendorff Carriers - Singapore
- Savvy Resources Ltd - HongKong
- New Zealand Coal & Carbon
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- Metalloyd Limited - United Kingdom
- Indonesian Coal Mining Association
- Electricity Authority, New Zealand
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Madhucon Powers Ltd - India
- Coal and Oil Company - UAE
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- Mercuria Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Miang Besar Coal Terminal - Indonesia
- Borneo Indobara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Africa Commodities Group - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Mining Services - Indonesia
- Bhoruka Overseas - Indonesia
- Petron Corporation, Philippines
- VISA Power Limited - India
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Deloitte Consulting - India
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Energy Development Corp, Philippines
- Riau Bara Harum - Indonesia
- Ministry of Mines - Canada
- Cement Manufacturers Association - India
- Bayan Resources Tbk. - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- Essar Steel Hazira Ltd - India
- Mjunction Services Limited - India
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Malabar Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Makarim & Taira - Indonesia
- Siam City Cement PLC, Thailand
- Antam Resourcindo - Indonesia
- Price Waterhouse Coopers - Russia
- Chettinad Cement Corporation Ltd - India
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