DSME Gets Fresh $6B Bail Out
Korea's battered Daewoo Shipbuilding & Marine Engineering (DSME) is all set to receive a new bailout package worth $6 billion, after court rejected appeal from a group of individual investors. According to Pulse news, government-led bailout package that required all creditors and bondholders to agree to push back the maturity, lower borrowing rates, and convert debt into equity according to their share had been put on hold as some of the individual investors appealed to a Busan court.
North P&I Club Supports Member in Overturning Cargo Carriage Judgement
North P&I Club has helped restore the commercial balance between shipowners and cargo interests by successfully supporting a Member in its appeal against a UK High Court decision (10 November 2016). The Court of Appeal overturned the March 5, 2015 decision in Volcafe Ltd and others v. CSAV, which has been viewed by the shipping community as widely detrimental to shipowners. Chilean shipowner CSAV carried bagged coffee in 17 non-ventilated containers between Columbia and Germany in 2012.
BIMCO: Recommended Amendments To Bunker Contracts
As widely reported in the maritime press, the United Kingdom's Supreme Court has granted an expedited hearing to Product Shipping & Trading's case against the collapsed OW Bunker (the Res Cogitans). The hearing will take place on 22 March in London and will deliver the final English law verdict on whether many hundreds of shipowners should pay OW Bunker's assignee ING Bank or pay the physical suppliers. In October 2015 it was held by the Court of Appeal that the UK Sale of Goods Act 1979 did not apply to contracts signed with OW Bunker as an intermediary for the supply of bunkers on credit.
Captain Mangouras Scapegoated Again
Spain’s Supreme Court has overturned the 2013 verdict of the Spanish court of first instance in La Coruna which had acquitted Capt Apostolos Mangouras, Master of the Prestige, of charges of criminal damage to the environment. In an unorthodox revision of the factual findings of the lower court, the appeal court has now ruled that Capt Mangouras and the owner of the Prestige acted ‘recklessly’ in 2002 when the 81,000 dwt tanker and its 50,000 tonne fuel oil cargo were lost off Spain’s west coast.
EMGS to Appeal Ruling On Patent Invalidity
As previously announced, Electromagnetic Geoservices ASA (EMGS) has issued claims against Petroleum Geo-Services (PGS) in the High Court of Justice, Patent Court, in London, UK, and in Norwegian courts on the basis that PGS used its Towed Streamer EM in the territory of the United Kingdom, Ireland and Norway in violation of one of EMGS' patents. On 13 February 2015, EMGS received the decision of the Oslo City Court where EMGS' patent is found to be invalid. EMGS has decided to appeal the decision.
Seychelles Anti-Piracy Exercise
On Thursday 8 January, a counter-piracy exercise was carried out jointly by the Seychelles Coast Guard, Air Force and Police together with the EU Naval Force Somalia – Operation Atalanta-, and the EU’s civilian maritime security capacity building Mission, EUCAP Nestor. The purpose of the exercise was twofold; firstly, to practice cooperation between the Coast Guard, Air Force, the Police and EUNAVFOR Atalanta a joint counter-piracy operation, and secondly to test procedures and routines linked to effective processing of suspected pirates and evidence handling at sea.
VLCC Charterers Favored in STS Transfer Judgement
Specialist shipping law firm Clyde & Co says that a Court of Appeal decision whether owners had acted unreasonably in withholding their consent for the use of two nominated VLCCs in a Ship to Ship (STS) transfer of crude oil from another VLCC at the port of Pasir Gudang will provide reassurance to the tanker transshipment trade. Falkonera Shipping Company chartered the Falkonera to Arcadia Energy Pte Ltd to perform a voyage, carrying crude oil from Yemen to the Far East. Charterers nominated two VLCC storage vessels to receive the cargo at the discharge port by way of STS transfer.
Landmark Legal P&I Ruling: LOU Constitutes Limitation Fund
In an important decision for the P&I industry, on 6 March 2014 the Court of Appeal has ruled that a Limitation Fund can now be constituted by way of a Letter of Undertaking ("LOU") given by a P&I Club, as opposed to a cash payment into court. Clyde & Co were instructed by the owners of the M/V "ATLANTIK CONFIDENCE", Kairos Shipping Limited, and their P&I insurers, the Standard Club. The vessel sank off Oman on 3 April 2013 following a fire on board and on 13 May 2013, Owners commenced…
Dutch Court of Appeal Widens Ship Arrest Scope
Rotterdam-based law firm AKD said a recent decision in the Dutch Court of Appeal substantially extends the jurisdiction of Dutch courts following a ship arrest. In the case of the Hero (HSH Nordbank vs Hero Shipping) the court ruled that the 1952 Arrest Convention applies to all vessels, irrespective of flag and owner. The court also broke new ground by agreeing that a bank did not need to provide security for its claim because it had sufficient financial strength. Carel van Lynden…
Charter Party Dispute: Shipowner Acted Unreasonably
In a recent decision, the Commercial Court held that a shipowner's refusal to allow two VLCC's nominated by the charterers to carry out STS transfer operations was unreasonable. A vessel was chartered to carry crude from Yemen to the Far East. The charterer also nominated 2 VLCCs to act as storage and receive the cargo at the discharge port by way of STS transfer. The owner of the chartered vessel withheld its approval of the 2 VLCCs and the charterer therefore had to discharge the cargo into smaller vessels to shuttle the cargo into the VLCCs.
Sevmash Shipyard Appeals Court Ruling
On 10 December 2010, the state commercial court in Arkhangelsk decided in favour of Odfjell and approved our application concerning the recognition and enforcement of the arbitral award filed against Sevmash shipyard. Odfjell has been informed that the Ruling of the Court has been appealed by Sevmash to the relevant court of appeal (Cassation Court in St. Petersburg). No information has been received with respect to when the case will be heard by the Cassation Court. In 2004 Odfjell placed an order at Sevmash…
Irving Shipyard Asks for High Court Ruling
According to a June 23 report from the Canadian Press, Irving Shipbuilding, the company that lost a multibillion-dollar submarine maintenance contract, is asking the Supreme Court of Canada to allow its legal challenge of the deal to proceed. When the maintenance contract was awarded in 2007 to a West Coast firm, Irving sought a judicial review. But the Federal Court of Appeal ruled the shipbuilder did not have standing to ask for such a review based on suspicions there was bias involved. (Source: Canadian Press)