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Tuesday, 03 March 20
IMPORTANCE OF MASTER'S CARGO CHECKS - BALTIC EXCHANGE
 KNOWLEDGE TO ELEVATE
Adecision in recent High Court case has made it clear that there is no implied indemnity from a charterer to their counterpart owners if cargo shippers present bills of lading that record the cargo as being loaded clean on board, even if the shippers could have ascertained that the cargo was in fact damaged at the time of loading.
Ince partner Jamila Khan and managing associate Natalie Nielsen lay out the facts of the case. Noble Chartering Inc (the disponent owner) timechartered a vessel from the head owner and then sub-voyage chartered the vessel to Priminds Shipping (HK) Co Ltd (the voyage charterer). Under the voyage charterparty, the vessel loaded a cargo of soya beans in bulk at Santos, Argentina, for discharge at Guangzhou, China. The cargo was loaded by the cargo shipper from a silo via mechanical hoppers.
At the discharge port, the cargo receiver discovered that portions of the cargo had suffered heat and mould damage. In order to prevent the arrest of the vessel, the shipowner secured the receiver’s cargo claim and agreed that it would be subject to Chinese law and the jurisdiction of the Chinese courts. The receiver’s cargo claim was litigated in the Chinese courts, who found the shipowner liable to the receiver for $1,086,564.70.
The shipowner in turn brought a claim against the disponent owner under the terms of the time charterparty, seeking a contribution of 50% of the sum paid to the receiver. This claim was settled by the disponent owner paying $500,000 to the shipowner.
The disponent owner then commenced London arbitration against the voyage charterer under the voyage charterparty, seeking to recover the $500,000 paid to the shipowner and the costs of defending that claim. The disponent owner claimed that they were owed an indemnity for these costs, although there was no express provision in the voyage charterparty providing for such an indemnity.
Arbitration findings
Following arbitration, the Tribunal’s Award highlighted the facts that the cargo had been damaged by heating caking and by mould; that both types of damage were pre-existing at the time of loading but were not reasonably visible to the Master during loading, so the Master could not have verified the condition of the cargo; and the damage would have been reasonably visible to the shipper at the time of loading.
The disponent owner argued that the words “Clean on Board” and “SHIPPED at the Port of Loading in apparent good order and condition” in the draft bill of lading that the shipper provided to the Master for his signature amounted to a representation or warranty by the shipper as to the apparent condition of the cargo at the time of loading. The disponent owners pointed out that the shipper was acting as the voyage charterer’s agent in loading the cargo and said that, by presenting the draft bill of lading in those terms, it had represented that the cargo was in good order when it was loaded – although it was not – and so the voyage charterer owed them an indemnity for the losses caused by the cargo damage.
The Court rejected this argument, stating that although the Hague Rules provide an indemnity in respect of information provided by the charterer which is included in the bills of lading (for example, the marks on bales of cargo or the cargo weights), this indemnity did not extend to statements concerning the apparent order and condition of the cargo. The wording relating to the condition of the cargo in the draft bill of lading was not a representation or a warranty by the shipper or voyage charterer, but was instead an invitation to the Master to make a representation of fact about the state of the cargo, in accordance with his own assessment of the cargo’s apparent condition. Accordingly, the Court held that the voyage charterer did not owe an implied indemnity to the disponent owner in relation to the cargo claim.
Viewpoint
Commented Ms Khan and Ms Nielsen: “Industry observers are unlikely to be surprised by the Court’s ruling in this case, as it has long been understood that it is incumbent on a master to perform his own assessment of the apparent state of the cargo during loading and, if necessary, to clause the bill of lading (despite any “clean” wording in the draft provided by the shippers).
“In practice, a master is often not in a position to make an accurate assessment of the condition of the cargo while it is being loaded. Under English law this gives the shipowners a defence under the Hague/Hague-Visby Rules against a claim brought by the cargo receivers. However, due to the global nature of shipping, a shipowner could face a situation where they are obliged to accept the jurisdiction of a local court that does not apply these defences in the same way. In such circumstances, the shipowner will only be able to pass this claim down to their charterers if the charterparty terms permit it, for example by incorporating the terms of the Inter-Club Agreement.
“This decision makes it clear that there is no implied indemnity from a charterer to their counterpart owners if their agents (the cargo shippers) present bills of lading that record the cargo as being loaded clean on board, even if the shippers could have ascertained that the cargo was in fact damaged at the time of loading.”
Source: The Baltic Exchange
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Sunday, 23 February 20
SHIPPING INDUSTRY FACES $370 MILLION HIT FROM NEW PANAMA CANAL CHARGE - REUTERS
A new “freshwater” charge that came in this month to help the Panama Canal cope with climate change will cost the shipping industry up ...
Sunday, 23 February 20
A 57,000DWT SHIP FIXING DELIVERY SOUTH KALIMANTAN TRIP, REDELIVERY CJK, AT $7,600 - BALTIC BRIEFING
Capesize
The Capesize market found little to cheer about this week as it again endured remarkable lows. The Atlantic continued to improve, with ...
Saturday, 22 February 20
THE SURPRISING MOVE IN MARINE FUEL SPREADS - ING
Middle distillates tank
One of the biggest surprises since the implementation of new International Maritime Organization (IMO) sulphur regulati ...
Friday, 21 February 20
CAPE: AVERAGE NOMINAL DAILY EARNINGS STILL ADMITTEDLY UNCHANGED W-O-W AT BELOW US$3000 - FEARNLEYS
CAPE
The worst may just about be over for the big ships. Average nominal daily earnings still admittedly unchanged w-o-w at below US$3k, but sent ...
Friday, 21 February 20
INDIA: POTENTIAL INVESTORS SEEK MORE CLARITY ON COMMERCIAL COAL MINING NORMS - FINANCIAL EXPRESS
Potential private investors have sought more clarity on the pricing mechanism proposed for the much-anticipated auction for commercial coal mining. ...
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Showing 1111 to 1115 news of total 6871 |
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- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- Romanian Commodities Exchange
- CNBM International Corporation - China
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- Commonwealth Bank - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
- Heidelberg Cement - Germany
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Ministry of Mines - Canada
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Kobexindo Tractors - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Jaiprakash Power Ventures ltd
- PNOC Exploration Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement - Thailand
- McConnell Dowell - Australia
- Planning Commission, India
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Posco Energy - South Korea
- Indian Energy Exchange, India
- Aboitiz Power Corporation - Philippines
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Holcim Trading Pte Ltd - Singapore
- Trasteel International SA, Italy
- Central Java Power - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Simpson Spence & Young - Indonesia
- Banpu Public Company Limited - Thailand
- PTC India Limited - India
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Merrill Lynch Commodities Europe
- Eastern Coal Council - USA
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Salva Resources Pvt Ltd - India
- Georgia Ports Authority, United States
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Mercator Lines Limited - India
- New Zealand Coal & Carbon
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- VISA Power Limited - India
- Xindia Steels Limited - India
- Electricity Generating Authority of Thailand
- Star Paper Mills Limited - India
- GVK Power & Infra Limited - India
- Borneo Indobara - Indonesia
- Minerals Council of Australia
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Chamber of Mines of South Africa
- Thai Mozambique Logistica
- Standard Chartered Bank - UAE
- Vizag Seaport Private Limited - India
- Marubeni Corporation - India
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Economic Council, Georgia
- Timah Investasi Mineral - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- Makarim & Taira - Indonesia
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Cigading International Bulk Terminal - Indonesia
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- ASAPP Information Group - India
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Indonesian Coal Mining Association
- Africa Commodities Group - South Africa
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Rashtriya Ispat Nigam Limited - India
- Ambuja Cements Ltd - India
- Energy Development Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Dalmia Cement Bharat India
- San Jose City I Power Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Australian Commodity Traders Exchange
- OPG Power Generation Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- Madhucon Powers Ltd - India
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Thiess Contractors Indonesia
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- ICICI Bank Limited - India
- Leighton Contractors Pty Ltd - Australia
- Australian Coal Association
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- Petron Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Carbofer General Trading SA - India
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Altura Mining Limited, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Grasim Industreis Ltd - India
- Bharathi Cement Corporation - India
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Wilmar Investment Holdings
- Karaikal Port Pvt Ltd - India
- Videocon Industries ltd - India
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Malabar Cements Ltd - India
- Oldendorff Carriers - Singapore
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Asmin Koalindo Tuhup - Indonesia
- Essar Steel Hazira Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Vedanta Resources Plc - India
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