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ASDEM NEWS UPDATE - No.

56
SEPTEMBER 2014
2ND EUROPEAN Asdem Barge generally regarded
OIL BARGE Newsletters. as acting reasonably.
CONFERENCE He may arrange for
15/16 May 2014. QUANTITY a surveyor report
It was agreed at the AND QUALITY and is entitled to a
very successful 2nd DISPUTES reasonable time for
Barge Conference WHEN this. However, a
held in May that ISSUING BILLS Master who
an Industry OF LADING unreasonably
Working Group Article provided refuses to sign or
should be formed by Andrew authorise the issue
to see whether a Wilding, of a bill of lading for
consensus could be Managing the shore figures "as
reached on the Director, Asdem presented" runs the
many problem Asia Pte. risk of being in
areas that had been We have dealt with a breach of charter
highlighted both at number of matters and may lose the
this conference and recently where there owners right to
at the previous one have been concerns claim demurrage.
in 2012. A show of over the quality and He may also incur
hands suggested quantity of the liability for a claim
that a considerable cargo. for delay arising
number of people from an underlying
would be keen to QUANTITY sales contract.
join the group. DISPUTES
The quantity of What constitutes a
The first meeting product will be reasonable refusal to
of the Working stated on the Bills of issue a bill of
Group will take Lading. The lading? The decision
place in Rotterdam charterers right to in The
on 5 September present bills of Boukadoura"
2014 where more lading does not [1989] 1Lloyd's
than 30 mean that the Rep 393 provides
representatives of Master must useful guidance.
oil companies, automatically sign There was a
traders, barge them. A Master who difference between
operators, barge wishes to check the the shore and the
owners and ship and shore vessel figures of
brokers have asked figures because he about 1%. Two draft
to attend. Their has concerns over surveys by the crew
findings and the accuracy of the indicated that the
progress will be figures provided by ships figures were
reported in future a terminal is different from the
shore figures and on its own facts and Provided he acts
they sought to issue circumstances as reasonably in
a bill of lading with well as what expert reaching his
both sets on the face assistance and conclusions or calls
of the bill. The evidence of in surveyors where
shippers required quantities are guidance is required,
only one set of available to the the Master is
figures, and insisted Master. However, entitled a reasonable
on the shore figures. irrespective of the time and
A further draft law of the opportunity to
survey was carried charterparty, the law arrange for surveys.
out by an of the country where In The "David
independent loading takes place Agmashenebeli"
surveyor. This may have to be [2003] 1 Lloyds
confirmed the ship's taken into Rep 92 the Master
figures but the consideration. was asked to issue
shippers nonetheless Furthermore, some bills of lading
refused to accept a terminals will insist containing a
bill of lading on local custom description of the
showing the ship's where the Bills of cargo which he did
figures. Ultimately, Lading will not believe
after considerable automatically be accurately reflected
further delay, a bill issued using the the actual condition
of lading based on terminals shore of the cargo. It was
the ship's figures figures. later found that the
was issued and the Master was being
cargo was carried to Commercially, most unreasonable in his
a destination and impasses can be description of the
discharged without resolved by a letter quality of the cargo
any shortage claim. of indemnity issued and he should have
Although the promptly by the obtained assistance
charterparty charterers. at the time. The
provided for bills of court said the
lading to be issued QUALITY obligation on the
by the Master "as DISPUTES Master to issue a bill
presented", the court As far as quality of lading was not a
agreed that the issues are concerned contractual
Master was only when issuing the bill guarantee of
obliged to show a of lading, the Master absolute accuracy as
bill lading for the does not have to do to the order and
quantity of cargo he anything other than condition of the
reasonably believed provide a general cargo, nor was there
to have been loaded. description of the any basis for the
The shipowners product. He need implication of any
were successful in not state anything such term.
their claim for time about its quality.
spent at the However, if the VLCC TO VLCC
anchorage until the Master reasonably STS TRANSFERS
issue was resolved. believes that the The ship owners in
cargo is not in the High Court case
Overall, there are no accordance with its of Falkonera
clear-cut guidelines description because Shipping Company
to determine when it appears not to be v. Arcadia Energy
or if a Master can in apparent good Pte Ltd. [2012]
reasonably refuse to order and condition, EWHC 3678
issue a bill of lading. he must say so. (Comm), referred to
Each case will turn in News Update No.
2
51,were given leaveShip to Ship
to appeal to the Transfer Guide for http://www.skuld
Court of Appeal. Petroleum, .com/topics/peo
The Court of Appeal
Chemicals and ple/diseases/insi
reference is EWCA Liquefied Gases, ght-ebola-virus/
Civ 713 2014. Their
First Edition which
appeal was rejected.
contains a section Asbatankvoy at
The court held that
dealing with STS clause 17(a)
the charterers had a
transfers involving states
right to transfer vessels of a similar QUARANTINE.
cargo to any vessel,
length. Should the
including a VLCC. QUARANTINE Charterer send
AND FREE
Although a transfer the Vessel to
to a VLCC might bePRATIQUE any port or
considered non- Article provided place where a
standard, this wasby Phil Stalley, quarantine
not reasonable HubSE Ltd. exists, any
grounds for refusal.
The outbreak of delay thereby
This finding had Ebola is a caused to the
been reached by antragedy for the Vessel shall
experienced judge in
people of West count as used
the High Court. The
Africa and I laytime; but
judge was entitled to
hope the virus should the
reach this can soon be quarantine not
conclusion, which contained and be declared
was one of fact. His
those infected until the Vessel
conclusion involved
treated is on passage to
the consideration effectively. Ive such port, the
and weighing of a been looking at Charterer shall
number of factors.how this may not be liable for
The Court of Appeal
affect laytime any resulting
would be reluctantand demurrage delay.
to overturn his in our industry Other charter
conclusion unless it
and I have to parties have
was shown that hesay the more I similar wording,
had misunderstood think about it see ExxonMobil
or misapplied the the less clear I Voy2012 clause
relevant legal am. Here are 23, Shellvoy6
principles, ignored
links to the clause 23 and
some relevant, or relevant pages BPVOY4 clause
taken account of at Ince and 29.
some irrelevant, Skuld, just two
consideration, or of a number of What is a port
reached a organisations with a
conclusion that was
that have put quarantine? I
clearly erroneous or
out notes on found the
outside the boundsthis subject: following
of what it was open
http://incelaw.co definition:
to him to decide. m/en/knowledge Quarantine: a
The judge was
- harbour
guilty of none of
bank/publication restriction
these things.
s/shipping- placed on a ship
issues-arising- which has an
Note: In November
out-of-the- infectious
2013 OCIMF
ebola-outbreak- disease on
published
in-west-africa board or has
3
arrived from a health of those vessel has the
port or country on board. The disease on
which is vessel may be board? The
notoriously free of disease clauses quoted
unhealthy, but the above do not
Oxford authorities may differentiate
Companion to need time to between a delay
Ships and the properly by the port
Sea edited by establish that. procedure v. a
Peter Kemp, Where does that delay actually
Oxford leave the ship caused by the
University Press. owner? vessel and I
assume that
In practice I Under the c/ps they must be
understand that quoted above I read as they are
the restriction would say that printed in that
placed on a generally (and delays fall to the
vessel under check the Owners or
quarantine is wording) if the Charterers
that it would vessel is according to the
have no ordered to a timing of the
physical contact port where declaration
from the shore quarantine irrespective of
and therefore already exists whether Free
would be unable then any delays Pratique is
to work cargo will count as granted or not.
until cleared by laytime and/or Under common
the health demurrage. If, law and
authorities. I on the other following the
have never had hand, the Delian Spirit
experience of a declaration of case the
case of quarantine is granting of Free
quarantine but made while the Pratique has
it would seem to vessel is on been considered
me that passage any a formality and
quarantine delay will be for the delay in
could be the Owner. This granting Free
declared by is my Pratique should
ports other than interpretation not invalidate
those directly even in those the NOR. If,
affected by the cases where the however, the
Ebola virus. I c/p requires the vessels fails
understand that vessel to have Free Pratique
as an example a Free Pratique in then there is a
European port order to tender good case for
could declare NOR such as alleging the
quarantine for Shellvoy6. invalidity of the
all vessels NOR.
arriving from What happens if In the dry cargo
the infected the vessel fails world charters
areas and to obtain Free often
delays could Pratique or incorporate
occur to that granting of Free WIFPON which
vessel Pratique is means the NOR
irrespective of delayed can be tendered
the state of the because the Whether in
4
Free Pratique or nker-owners- 2014, The
Not. Even this charterers- Mandarin Orchard
clause has disagree-on- Hotel, Singapore
doubters on ebola-liability For the last five
both sides. On In summary, I years Andrew
the one hand dont feel that Wilding, Managing
this could be the current Director of Asdem
read literally printed charter Asia, has been
and the NOR is party forms running a range of
valid whether or cover all Asdem in-house
not the vessel is eventualities training seminars for
able to get Free clearly and I oil traders and
Pratique. The would urge both tanker companies.
counter owners and He has a wealth of
argument is that charterers to experience in all
the NOR never get some clear aspects of laytime
becomes valid wording agreed and demurrage
and this seems to avoid costly arising from both
to be supported disputes later. If the charter parties
by Schofield 6th you have any and sales contracts
Edition at 3.187 comments or and has now taken
where he experiences of over the
considers delays and how presentation of this
WIFPON. He they have been course which Roger
says 'It is resolved please Sepkes, Managing
doubtful post them to my Director of Asdem
whether the blog at in London, had run
phrase would www.hubse.com annually in
extend to Singapore since
allowing time to LAYTIME AND 1999.
commence DEMURRAGE
where pratique TRAINING FOR This course has been
was actually THE OIL AND constantly updated
refused or TANKER in the light of the
where there INDUSTRIES latest court
were grounds 25/26 September decisions and
for believing 2014, The arbitration awards.
Chesterfield Hotel, The two-day course
that it would be
London W1 covers far more than
at a later date.'
This course is now just the
fundamentals of
I read this week fully booked. Please
phone for possible laytime and
that some
cancellations. If we demurrage. It
specific
receive sufficient provides a detailed
agreements
interest, we will run examination of both
between
another course charter party and
Owners and
contract demurrage
Charterers are before the end of the
year. with a clear and
being drafted
concise explanation
and this article More details>> of all the problem
from IHS areas. This course is
Maritime 360 LAYTIME AND
DEMURRAGE designed
may be of specifically for the
interest: TRAINING FOR
oil and tanker
http://www.ihsm THE OIL AND industries and
aritime360.com/ TANKER examines the
article/14411/ta INDUSTRIES differences between
25/26 September
5
all the commonly They will also gain brokers, port
used charter parties. an increased agencies, inspectors,
The comprehensive awareness of the banks and similar
documentation has many potential service
been written as a pitfalls. organisations can
very useful and The course covers gain a valuable
practical for future the structure of the understanding of
reference. Asdem tanker market, how their customers
holds this training information is roles and
course annually in gathered and responsibilities.
Singapore and it will disseminated, how More details>>
be limited to a business is quoted
maximum of 22 and how proposals ADVANCED
people. are evaluated. On DEMURRAGE
More details>> day one, delegates WORKSHOP
will learn the 30/31 October
TANKER voyage negotiation 2014, The Radisson
CHARTERING process and then Blu Portman Hotel,
AND proceed to charter a London W1
OPERATIONS vessel. During day Asdem is pleased to
9/10 October 2014, two, delegates will present this two-day
The Chesterfield operate the charter workshop in
Hotel, London W1 through its various conjunction with
John Cohen, owner stages of loading, Jeremy Davies, the
of Tanker Shipping sailing, and Geneva Partner at
Consultancy discharging. They international
Services and Roger will deal with a shipping lawyers,
Sepkes, Managing variety of issues allHolman Fenwick
Director of Asdem the way to final Willan. Jeremy has
have combined their closure of the file, conducted extremely
many years of including the successful workshop
experience to put calculation of sessions at Asdems
together a training freight, demurrage last seven Tanker
course which and deviation. Demurrage
concentrates on the Conferences. They
practical issues This two-day have always
relating to voyage seminar has been received the highest
charters and tanker designed for approval rating from
operations. The chartering and delegates and the
course takes a operations staff who only complaint is
typical voyage as its need to understand that there is never
basis in order to the fundamentals of enough time to
provide delegates the tanker market. debate all the points
with an in-depth Anyone who raised by his
understanding of the services the tanker thought-provoking
procedures to be market and feels case studies.
followed for they would benefit
chartering and from a more Jeremy Davies and
operating vessel structured Roger Sepkes,
contracts. Role-play knowledge of the Managing Director
and hands-on elements of of Asdem, have
exercises ensure that chartering and combined their
the delegates will tanker operations many years
fully understand the will find the course experience of
reasons for the extremely handling claims and
various decisions beneficial. resolving disputes to
they have to take. Personnel from ship examine a number
6
of interesting issues opportunity for PORTS - HOW
that have been establishing useful SHIP, TERMINAL
highlighted by business contacts AND SHORE
recent court among the STAFF CAN
decisions. The delegates. MINIMISE
workshop will More details>> CLAIMS FOR
include several case DEMURRAGE
studies and a mock 27-28 November
arbitration. It will 2014 at The
also involve full PETROLEUM Chesterfield Hotel,
participation by the TECHNOLOGY, London. This
delegates who can REFINING AND course is
bring with them any BLENDING specifically aimed at
current problems 6/7 November 2014 personnel involved
they would like to at the Intertek in the turnaround of
discuss. The Caleb Brett a tanker in port. This
programme is Laboratory in course will be of
specifically Grays, Essex prime interest to
designed for Martin Stokes, ship staff, especially
demurrage analysts, Asdems Senior the master, chief
claims handlers and Technical officer and others on
lawyers who already Consultant, has board who are
have a reasonable called on his 35+ concerned with the
level of experience years of practical commercial
and may possibly experience in the oil operation of the
have previously industry to design a venture. Terminal
attended Asdems course where staff such as jetty
laytime and delegates will learn supervisors will also
demurrage training as much as possible benefit from this
seminars and about refining course by gaining an
conferences. processes and the understanding of the
specification of the impact of their
The two days allows different refined actions or inactions
enough time to products, from LPG on the resulting
cover a range of through to bitumen. demurrage cost for
contentious They will also gain their terminal. Other
demurrage claims an appreciation of shore based staff,
and should provide the principles of including ship
delegates with a blending oil agents and cargo
greater awareness of products. This 2-day inspectors, who
many aspects of this course will be of have a good
important subject. In interest to operators, understanding of
demurrage traders, claims laytime and
negotiations, the analysts and anyone demurrage from a
person with the from oil trading practical point of
greatest knowledge companies, ship view can be of
and experience will owners and service considerable
inevitably be best companies who assistance to their
placed to find would like to have a clients. Everyone
opportunities for good understanding involved in shipping
saving money. of refining, product needs to appreciate
qualities and that they can help to
We have arranged a blending. More minimise demurrage
cocktail reception at details >> costs or to maximise
the end of the first the amount which
day which will TANKER can be recovered
provide a further DELAYS IN from third parties.
7
The course will ASDEM Elizabeth Davies.
offer guidance on TRAINING Asdems recruitment
important areas COURSES consultant, at
including: You can find full elizabeth@asdem.c
How to details of Asdems o.uk
complete current programme
documentati of courses for DEMURRAGE
on while the September to DRINKS
vessel is in December 2014 in EVENING
port. the Conferences & The next
Tendering Training Seminars demurrage drinks
and section on our evening will be
acceptance website. For held on Monday,
of the additional 13 October 2014
vessels information please and will be
Notice of contact sponsored by
Readiness. susan@asdem.co.uk HubSE, the
Issuing and . company that
accepting of provides claims
Letters of ASDEM management and
Protest. EXECUTIVE demurrage
RECRUITMENT exchange systems
The
Vacancies posted on for the oil industry.
consequenc
our website in areas Details of the venue
es of actions
such as demurrage, will be sent out
or inactions
operations, and shortly.
of staff in
shipping can be
the port.
accessed at: Asdem To be added to or
More details>>
recruitment. For deleted from our
further details on email distribution
any of these list, please email
positions or if you your request to
have vacancies that info@asdem.co.uk
need to be filled,
please contact

Current list of Asdem Courses and Conferences for


September December 2014
25/26 September Laytime & Demurrage
London
25/26 September Laytime & Demurrage
Singapore
9/10 October Tanker Chartering & Operations
London
30/31 October Advanced Demurrage Workshop
London
6/7 November Petroleum Technology and Refining
London and Grays
27/28 November Tanker Delays in Ports
London