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INTERNATIONAL MARITIME LAW ARBITRATION MOOT

2017

IMLAM Moot organised by School of Law, Murdoch University, Perth Australia Oral rounds hosted by Centre for Maritime Law, Faculty of Law,

National University of Singapore.

MOOT SCENARIO RELEASED 9 DECEMBER 2016

We request that teams intending to register for the competition inform the moot organisers as soon as possible: email [email protected]. It assists us with planning if we know the

numbers of teams proposing to attend. You need not give the names of participants at this stage.

Registration forms, the schedule of important dates and other information for competitors can be found at the website: http://www.murdoch.edu.au/School-of-Law/International-Maritime-Law-

Arbitration-Moot/

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mailto:[email protected]

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http://www.murdoch.edu.au/School-of-Law/International-Maritime-Law-Arbitration-Moot/

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THIS CHARTER PARTY, made and concluded in Singapore this 15th

day of February 2016

BETWEEN

Imlam Consignorist GmbH of ABC-Straße 19, 20354 Hamburg, Germany as the registered owners (the

“Owners”) of M.V. “TARDY TESSA” (IMO No. 99223311, Singapore flagged, 2011 Built, Deadweight

76,822 metric tons) (the “Vessel”)

AND

Furnace Trading Pte Ltd of Two Marina Boulevard #19-05, Singapore 018990 (the “Charterers”)

This Charter Party shall be performed subject to all the terms and conditions herein consisting of this main body

including any additional clauses and addenda, if applicable.

1. Duration/Trip Description

(a) The Owners agree to let, and the Charterers agree to hire, the Vessel from the time of delivery, for 2

years within below mentioned trading limits.

(b) Trading Limits - The Vessel shall be employed in such lawful trades between safe ports and safe places

within Asia and Australia as the Charterers shall direct.

(c) Berths - The Vessel shall be loaded and discharged in any safe anchorage or at any safe berth or safe

place that the Charterers or their agents may direct, provided the Vessel can safely enter, lie and depart

always afloat.

(d) The Vessel during loading and/or discharging may lie safely aground at any safe berth or safe place

where it is customary for vessels of similar size, construction and type to lie, if so requested by the

Charterers, provided it can do so without suffering damage. The Charterers shall indemnify the Owners

for any loss, damage, costs, expenses or loss of time, including any underwater inspection required by

class, caused as a consequence of the Vessel lying aground at the Charterers’ request.

(e) Sublet - The Charterers shall have the liberty to sublet the Vessel for all or any part of the time covered

by this Charter Party, but the Charterers remain responsible for the fulfilment of this Charter Party.

2. Delivery

(a) The Vessel shall be delivered to the Charterers at Batam, Indonesia or Singapore at the Charterers’

option.

(b) The Vessel on delivery shall be seaworthy and in every way fit to be employed for the intended service,

having water ballast and with sufficient power to operate all cargo handling gear simultaneously, and,

with full complement of Master, officers and ratings who meet the Standards for Training, Certification

and Watchkeeping for Seafarers (STCW) requirements for a vessel of her tonnage.

(c) The Vessel’s holds shall be clean and in all respects ready to receive the intended cargo, or if no

intended cargo, any permissible cargo on delivery.

(d) The Owners shall keep the Charterers informed of the Vessel’s itinerary. Prior to the arrival of the

Vessel at the delivery port or place, the Owners shall serve the Charterers three (3) days’ approximate

and two (2) days’ definite notices of the Vessel’s delivery. Following the tender of any such notice the

Owners shall give or allow to be given to the Vessel only such further employment orders, if any, as

are reasonably expected when given to allow delivery to occur on or before the date notified. The

Owners shall give the Charterers and/or their local agents notice of delivery when the Vessel is in a

position to come on hire.

(e) Acceptance of delivery of the Vessel by the Charterers shall not prejudice their rights against the

Owners under this Charter Party.

IMLAM release date 09/12/16 1

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3. Laydays/Cancelling

If required by the Charterers, time on hire shall not commence before 1 April 2016, 1200hrs (local time)

and should the Vessel not have been delivered on or before 14 April 2016, 1600hrs (local time) at the

port or place stated in Sub-clause 2(a), the Charterers shall have the option of cancelling this Charter

Party at any time but not later than the day of the Vessel’s notice of delivery.

4. Redelivery

(a) The Vessel shall be redelivered to the Owners in like good order and condition, ordinary wear and tear

excepted, at Busan, South Korea.

(b) The Charterers shall keep the Owners informed of the Vessel’s itinerary. Prior to the arrival of the

Vessel at the redelivery port or place, the Charterers shall serve the Owners with ten (10) days’

approximate and three (3) days’ definite notices of the Vessel’s redelivery. Following the tender of any

such notices the Charterers shall give or allow to be given to the Vessel only such further employment

orders, if any, as are reasonably expected when given to allow redelivery to occur on or before the date

notified.

(c) Acceptance of redelivery of the Vessel by the Owners shall not prejudice their rights against the

Charterers under this Charter Party.

5. On/Off-Hire Survey

Prior to delivery and redelivery the parties shall, unless otherwise agreed, each appoint surveyors, for

their respective accounts, who shall not later than at first loading port/last discharging port respectively,

conduct joint on-hire/off-hire surveys, for the purpose of ascertaining the quantity of bunkers on board

and the condition of the Vessel. A single report shall be prepared on each occasion and signed by each

surveyor, without prejudice to his right to file a separate report setting forth items upon which the

surveyors cannot agree.

If either party fails to have a representative attend the survey and sign the joint survey report, such

party shall nevertheless be bound for all purposes by the findings in any report prepared by the other

party.

Any time lost as a result of the on-hire survey shall be for the Owners’ account and any time lost as a

result of the off-hire survey shall be for the Charterers’ account.

6. Owners to Provide

(a) The Owners shall provide and pay for the insurances of the Vessel, except as otherwise provided, and

for all provisions, cabin, deck, engine-room and other necessary stores, boiler water and lubricating oil;

shall pay for wages, consular shipping and discharging fees of the crew and charges for port services

pertaining to the crew/crew visas; shall maintain the Vessel’s class and keep her in a thoroughly

efficient state in hull, machinery and equipment for and during the service, and have a full complement

of Master, officers and ratings.

(b) The Owners shall provide any documentation relating to the Vessel as required to permit the Vessel to

trade within the agreed limits, including but not limited to International Tonnage Certificate,

Certificates of Registry, and certificates relating to the strength, safety and/or serviceability of the

Vessel’s gear. Such documentation shall be maintained during the currency of the Charter Party as

necessary. Owners shall also provide and maintain such Certificates of Financial Responsibility for oil

pollution to permit the Vessel to trade within the agreed limits as may be required at the

commencement of the Charter Party. However, in the event that, at the time of renewal, a Certificate of

Financial Responsibility is unavailable in the market place, or, the premium for same increases


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significantly over the course of the Charter Party, then Owners and Charterers shall discuss each with

the other to find a mutually agreeable solution for same, failing such solution the port(s) that require

said Certificate of Financial Responsibility are to be considered as added to the Vessel's trading

exclusions.

(c) The Vessel to work night and day if required by the Charterers, with crew opening and closing hatches,

when and where required and permitted by shore labor regulations, otherwise shore labor for same shall

be for the Charterers’ account.

7. Charterers to Provide

(a) The Charterers, while the Vessel is on-hire, shall provide and pay for all the bunkers except as

otherwise agreed; shall pay for port charges (including compulsory garbage disposal), compulsory

gangway watchmen and cargo watchmen, compulsory and/or customary pilotages, canal dues, towages,

agencies, commissions, consular charges (except those pertaining to individual crew members or flag

of the Vessel), and all other usual expenses except those stated in Clause 6, but when the Vessel puts

into a port for causes for which the Vessel is responsible (other than by stress of weather), then all such

charges incurred shall be paid by the Owners.

(b) Fumigations ordered because of illness of the crew or for infestations prior to delivery under this

Charter Party shall be for the Owners’ account. Fumigations ordered because of cargoes carried or

ports visited while the Vessel is employed under this Charter Party shall be for the Charterers’ account.

(c) The Charterers shall provide and pay for necessary dunnage, lashing materials and also any extra

fittings requisite for a special trade or unusual cargo, but the Owners shall allow them the use of any

dunnage already aboard the Vessel. Prior to redelivery the Charterers shall remove their dunnage,

fittings and lashing materials at their cost and in their time.

8. Performance of Voyages

(a) Subject to Clause 38 (Slow Steaming) the Master shall perform the voyages with due despatch and

shall render all customary assistance with the Vessel’s crew. The Master shall be conversant with the

English language and (although appointed by the Owners) shall be under the orders and directions of

the Charterers as regards employment and agency; and the Charterers shall perform all cargo handling,

including but not limited to loading, stowing, trimming, lashing, securing, dunnaging, unlashing,

discharging, and tallying, at their risk and expense, under the supervision of the Master.

(b) If the Charterers shall have reasonable cause to be dissatisfied with the conduct of the Master or

officers, the Owners shall, on receiving particulars of the complaint, investigate the same, and, if

necessary, make a change in appointments.

9. Bunkers

(a) Bunker quantities and prices

The Charterers shall not take over and pay for bunkers remaining on board at delivery but shall

redeliver the Vessel with about the same quantities and grades of bunkers as on delivery. Any

difference between the delivery quantity and the redelivery quantity shall be paid by the Charterers or

the Owners as the case may be. The price of the bunkers shall be the net contract price paid by the

receiving party, as evidenced by suppliers’ invoice or other supporting documents.

(b) Bunkering Prior to Delivery/Redelivery

Provided that it can be accomplished at ports of call, without hindrance to the working or operation of

or delay to the Vessel, and subject to prior consent, which shall not be unreasonably withheld, the

Owners shall allow the Charterers to bunker for their account prior to delivery and the Charterers shall


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allow the Owners to bunker for their account prior to redelivery. If consent is given, the party ordering

the bunkering shall indemnify the other party for any delays, losses, costs and expenses arising

therefrom.

(c) Bunkering Operations and Sampling

(i) The Chief Engineer shall co-operate with the Charterers’ bunkering agents and fuel suppliers

during bunkering. Such cooperation shall include connecting/disconnecting hoses to the

Vessel’s bunker manifold, attending sampling, reading gauges or meters or taking soundings,

before, during and/or after delivery of fuels.

(ii) During bunkering a primary sample of each grade of fuels shall be drawn in accordance with

the International Maritime Organization (IMO) Resolution Marine Environment Protection

Committee (MEPC) MEPC.182(59) Guidelines for the Sampling of Fuel Oil for

Determination of Compliance with the Marine Pollution Convention (MARPOL) 73/78 Annex

VI or any subsequent amendments thereof. Each primary sample shall be divided into no

fewer than five (5) samples; one sample of each grade of fuel shall be retained on board for

MARPOL purposes and the remaining samples of each grade distributed between the Owners,

the Charterers and the bunker suppliers.

(iii) The Charterers warrant that any bunker suppliers used by them to bunker the Vessel shall

comply with the provisions of Sub-clause (c)(ii) above.

(iv) Bunkers of different grades, specifications and/or suppliers shall be segregated into separate

tanks within the Vessel’s natural segregation. The Owners shall not be held liable for any

restriction in bunker capacity as a result of segregating bunkers as aforementioned.

(d) Bunker Quality and Liability

(i) The Charterers shall supply bunkers of the agreed specifications and grades: DMX, RMB. The

bunkers shall be of a stable and homogeneous nature and suitable for burning in the Vessel’s

engines and/or auxiliaries and, unless otherwise agreed in writing, shall comply with the

International Organization for Standardization (ISO) standard 8217:2012 or any subsequent

amendments thereof. If ISO 8217:2012 is not available then the Charterers shall supply

bunkers which comply with the latest ISO 8217 standard available at the port or place of

bunkering.

(ii) The Charterers shall be liable for any loss or damage to the Owners or the Vessel caused by

the supply of unsuitable fuels and/or fuels which do not comply with the specifications and/or

grades set out in Sub-clause (d)(i) above, including the off-loading of unsuitable fuels and the

supply of fresh fuels to the Vessel. The Owners shall not be held liable for any reduction in

the Vessel’s speed performance and/or increased bunker consumption nor for any time lost

and any other consequences arising as a result of such supply.

(e) Fuel Testing Program

(i) Should the Owners participate in a recognized fuel testing program one of the samples

retained by the Owners shall be forwarded for such testing. The cost of same shall be borne by

the Owners and if the results of the testing show the fuel not to be in compliance with ISO

8217:2012, or any subsequent amendment thereof, or such other specification as may be

agreed, the Owners shall notify the Charterers and provide a copy of the report as soon as

reasonably possible.

(ii) In the event the Charterers call into question the results of the testing, a fuel sample drawn in

accordance with IMO Resolution MEPC.96(47) Guidelines for the Sampling of Fuel Oil for


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Determination of Compliance with Annex VI of MARPOL 73/78 or any subsequent

amendments thereof, shall be sent to a mutually agreed, qualified and independent laboratory

whose analysis as regards the characteristics of the fuel shall be final and binding on the

parties concerning the characteristics tested for. If the fuel sample is found not to be in

compliance with the specification as agreed in the paragraph above, the Charterers shall meet

the cost of this analysis, otherwise same shall be for the Owners’ account.

(f) Bunker Fuel Sulphur Content

(i) Without prejudice to anything else contained in this Charter Party, the Charterers shall supply

fuels of such specifications and grades to permit the Vessel, at all times, to comply with the

maximum sulphur content requirements of any emission control area when the Vessel is

ordered to trade within that area. The Charterers also warrant that any bunker suppliers,

bunker craft operators and bunker surveyors used by the Charterers to supply such bunkers

shall comply with Regulations 14 and 18 of MARPOL Annex VI, including the Guidelines in

respect of sampling and the provision of bunker delivery notes. The Charterers shall

indemnify, defend and hold harmless the Owners in respect of any loss, liability, delay, fines,

costs or expenses arising or resulting from the Charterers' failure to comply with this Sub-

clause (f)(i).

(ii) Provided always that the Charterers have fulfilled their obligations in respect of the supply of

fuels in accordance with Sub-clause (f)(i), the Owners warrant that:

1. the Vessel shall comply with Regulations 14 and 18 of MARPOL Annex VI and with the

requirements of any emission control area; and

2. the Vessel shall be able to consume fuels of the required sulphur content,

when ordered by the Charterers to trade within any such area. Subject to having supplied the

Vessel with fuels in accordance with Sub-clause (f)(i), the Charterers shall not otherwise bear

any loss, liability, delay, fines, costs or expenses arising or resulting from the Vessel’s failure

to comply with Regulations 14 and 18 of MARPOL Annex VI.

(iii) For the purpose of this Clause, "emission control area" shall mean an area as stipulated in

MARPOL Annex VI and/or an area regulated by regional and/or national authorities such as,

but not limited to, the European Union (EU) and the United States (US) Environmental

Protection Agency.

(f) Grades and Quantities of Bunkers on Redelivery

Unless agreed otherwise, the Vessel shall be redelivered with the same grades and about the same

quantities of bunkers as on delivery; however, the grades and quantities of bunkers on redelivery shall

always be appropriate and sufficient to allow the Vessel to reach safely the nearest port at which fuels

of the required types are available.

10. Rate of Hire; Hold Cleaning; Communications; Victualing and Expenses

(a) The Charterers shall pay for the use and hire of the said Vessel at the rate of USD 10,000 per day or pro

rata for any part of a day, commencing on and from the time of her delivery, as aforesaid, including the

overtime of crew; hire to continue until the time of her redelivery to the Owners as per Clause 4

(Redelivery) (unless Vessel lost). Unless otherwise mutually agreed, the Charterers shall have the

option to redeliver the Vessel with unclean/unswept holds against a lumpsum payment of USD 250,000

in lieu of hold cleaning, to the Owners (unless Vessel lost).

The Owners shall victual pilots and such other persons as authorized by the Charterers or their agents.

While on-hire, the Charterers shall pay the Owners along with the hire payments, USD 60,000 per


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thirty (30) days or pro rata, to cover all Communications, Victualing and Expenses properly incurred

by the Vessel under the Charterers’ employment. For the purpose of hire calculations, the times of

delivery, redelivery or termination of this Charter Party shall be adjusted to Coordinated Universal

Time (UTC).

(b) Hold Cleaning/Residue Disposal

(i) The Charterers may request the Owners to direct the crew to sweep and/or wash and/or clean

the holds between voyages and/or between cargoes against payment at the rate of USD 15,000

per hold, provided the crew is able safely to undertake such work and is allowed to do so by

local regulations. In connection with any such operation the Owners shall not be responsible if

the Vessel's holds are not accepted or passed. Time for cleaning shall be for the Charterers’

account.

(ii) Unless this Charter Party is concluded for a single laden leg, all cleaning agents and additives

(including chemicals and detergents) required for cleaning cargo holds shall be supplied and

paid for by the Charterers. The Charterers shall provide the Owners with a dated and signed

statement identifying cleaning agents and additives that, in accordance with IMO Resolution

219(63) Guidelines for the Implementation of MARPOL Annex V, are not substances harmful

to the marine environment and do not contain any component known to be carcinogenic,

mutagenic or reprotoxic.

(iii) Throughout the currency of this Charter Party and at redelivery, the Charterers shall remain

responsible for all costs and time, including deviation, if any, associated with the removal and

disposal of cargo related residues and/or hold washing water and/or cleaning agents and

detergents and/or waste. Removal and disposal as aforesaid shall always be in accordance with

and as defined by MARPOL Annex V, or other applicable rules.

11. Hire Payment

(a) Payment

Payment of Hire shall be made without deductions due to Charterers’ bank charges so as to be received

by the Owners or their designated payee into the bank account as follows:

Account Name: IMLAM CONSIGNORIST GMBH

Account No: 884-987654321-002

BENEFICIARY BANK

P.T. BANK TERUMATA BAGUS TBK

JALAN M.H. THAMRIN NO.59

RT.9/RW.5, GONDANGDIA, MENTENG,

JAKARTA 10350, INDONESIA

SWIFT CODE BTGTIDID

CHIPS UID 010203

INTERMEDIARY BANK

JP GOLDMAN CHASING BANK, NEW YORK

SWIFT CODE: CHASIUX2

in the currency stated in Clause 10 (Rate of Hire; Hold Cleaning; Communications; Victualing and

Expenses), in funds available to the Owners on the due date, (1) one calendar month in advance, and


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for the last one (1) month or part of same the approximate amount of hire, and should the same not

cover the actual time, hire shall be paid for the balance day by day as it becomes due, if so required by

the Owners. The first payment of hire shall be due on delivery.

(b) Grace Period

Where there is failure to make punctual payment of hire due, the Charterers shall be given by the

Owners five (5) Banking Days (as recognized at the agreed place of payment) written notice to rectify

the failure, and when so rectified within those five (5) Banking Days (as recognized at the agreed place

of payment and the place of currency of the Charter Party) following the Owners’ notice, the payment

shall stand as punctual.

(c) Withdrawal

Failure by the Charterers to pay hire due in full within five (5) Banking Days of their receiving a notice

from Owners under Sub-clause 11(b) above shall entitle the Owners, without prejudice to any other

rights or claims the Owners may have against the Charterers:

(i) to withdraw the Vessel from the service of the Charterers;

(ii) to damages, if they withdraw the Vessel, for the loss of the remainder of the Charter Party.

(d) Suspension

At any time while hire is outstanding, the Owners shall, without prejudice to the liberty to withdraw, be

entitled to withhold the performance of any and all obligations hereunder and shall have no

responsibility whatsoever for any consequences thereof, and Charterers hereby indemnify the Owners

for all legitimate and justifiable actions taken to secure their interests, and hire shall continue to accrue

and any extra expenses resulting from such withholding shall be for the Charterers’ account.

(e) Last Hire Payment

Should the Vessel be on her voyage towards port/place of redelivery at the time the last payment(s) of

hire is/are due, said payment(s) is/are to be made for such length of time as the estimated time

necessary to complete the voyage, including the deduction of estimated disbursements for the Owners’

account before redelivery. Should said payments not cover the actual time, hire is to be paid for the

balance, day by day, as it becomes due. Unless Sub-clause 9(a)(ii) or (iii) has been agreed, the

Charterers shall have the right to deduct the value of bunkers on redelivery from last sufficient hire

payment(s). When the Vessel has been redelivered, any difference in hire and bunkers is to be refunded

by the Owners or paid by the Charterers within five (5) Banking Days, as the case may be.

(f) Cash Advances

Cash for the Vessel’s ordinary disbursements at any port may be advanced by the Charterers, as

required by the Owners, subject to two and a half (2.5) per cent commission and such advances shall be

deducted from the hire. The Charterers, however, shall in no way be responsible for the application of

such advances.

12. Speed and Consumption


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(a) Upon delivery and throughout the duration of this Charter Party the Vessel shall be capable of speed

and daily consumption rates as stated in Appendix A in good weather on all sea passages with wind up

to and including Force four (4) as per the Beaufort Scale and sea state up to and including Sea State

three (3) as per the Douglas Sea Scale (unless otherwise specified in Appendix A). Any period during

which the Vessel’s speed is deliberately reduced to comply with the Charterers’ orders/requirements

(unless slow steaming or eco speed warranties have been given in Appendix A) or for reasons of safety

or while navigating within narrow or restricted waters or when assisting a vessel in distress or when

saving or attempting to save life or property at sea, shall be excluded from performance calculations.

(b) The Charterers shall have the option of using their preferred weather routing service. The Master shall

comply with the reporting procedure of the Charterers’ weather routing service and shall follow routing

recommendations from that service provided that the safety of the Vessel and/or cargo is not

compromised.

(c) The actual route taken by the Vessel shall be used as the basis of any calculation of the Vessel's

performance.

(d) If the speed of the Vessel is reduced and/or fuel oil consumption increased, the Charterers may submit

to the Owners a documented claim limited to the estimated time lost and/or the additional fuel

consumed, supported by a performance analysis from the weather routing service established in

accordance with this Clause. The cost of any time lost shall be off-set against the cost of any fuel saved

and vice versa.

(e) In the event that the Owners contest such claim then the Owners shall provide copies of the Vessel's

deck logs for the period concerned and the matter shall be referred to an independent expert or

alternative weather service selected by mutual agreement, whose report shall take Vessel’s log data and

the Charterers’ weather service data into consideration and whose determination shall be final and

binding on the parties. The cost of such expert report shall be shared equally.

13. Spaces Available

(a) The whole reach of the Vessel’s holds, decks, and other cargo spaces (not more than she can

reasonably and safely stow and carry), also accommodation for supercargo, if carried, shall be at the

Charterers’ disposal, reserving only proper and sufficient space for the Vessel’s Master, officers,

ratings, tackle, apparel, furniture, provisions, stores and bunkers.

(b) In the event of deck cargo being carried, the Owners are to be and are hereby indemnified by the

Charterers for any loss and/or damage and/or liability of whatsoever nature howsoever caused to the

deck cargo which would not have arisen had the deck cargo not been loaded. Bills of Lading shall be

issued as per Clause 31(c).

14. Sailing Orders and Logs

The Charterers shall furnish the Master from time to time with all requisite instructions and sailing

directions, in writing, in the English language, and the Master shall keep full and correct deck and

engine logs of the voyage or voyages, which are to be patent to the Charterers or their agents, and shall

furnish the Charterers, their agents or supercargo, when required, with a true copy of such deck and

engine logs, showing the course of the Vessel, distance run and the consumption of bunkers. Any log

extracts required by the Charterers shall be in the English language.

15. Cargo Exclusions

The Vessel shall be employed in carrying lawful merchandise, excluding any goods of a dangerous,

injurious or corrosive nature unless carried in accordance with the requirements or recommendations of

the competent authorities of the country of the Vessel’s registry, and of ports of loading and discharge,

and of any intermediate countries or ports through whose waters the Vessel must pass. Without


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prejudice to the generality of the foregoing in addition the following are specifically excluded:

livestock of any description, arms, ammunition, explosives, nuclear and radioactive material.

16. Cargo Exclusions

The Charterers are entitled to appoint a supercargo, who shall accompany the Vessel at the Charterers’

risk and see that voyages are performed with due despatch. He is to be furnished with free

accommodation and meals same as provided for the Master’s table. The Charterers and the supercargo

are required to sign the standard letter of waiver and indemnity recommended by the Vessel’s

Protection and Indemnity Association before the supercargo comes on board the Vessel.

17. Off-Hire

In the event of loss of time from deficiency and/or default and/or strike of officers or ratings, or

deficiency of stores, fire, breakdown of, or damage to hull, machinery or equipment, grounding,

detention by the arrest of the Vessel, (unless such arrest is caused by events for which the Charterers,

their sub-charterers, servants, agents or sub-contractors are responsible), or detention by Port State

control or other competent authority for Vessel deficiencies, or detention by average accidents to the

Vessel or cargo, unless resulting from inherent vice, quality or defect of the cargo, drydocking for the

purpose of examination, cleaning and/or painting of underwater parts and/or repair, or by any other

similar cause preventing the full working of the Vessel, the payment of hire and overtime, if any, shall

cease for the time thereby lost. Should the Vessel deviate or put back during a voyage, contrary to the

orders or directions of the Charterers, for any reason other than accident to the cargo or where

permitted in Clause 22 (Liberties) hereunder, the hire to be suspended from the time of her deviating or

putting back until she is again in the same or equidistant position from the destination and the voyage

resumed therefrom. All bunkers used by the Vessel while off-hire shall be for the Owners’ account. In

the event of the Vessel being driven into port or to anchorage through stress of weather, trading to

shallow harbors or to rivers or ports with bars, any detention of the Vessel and/or expenses resulting

from such detention shall be for the Charterers’ account. If upon the voyage the speed be reduced by

defect in, or breakdown of, any part of her hull, machinery or equipment, the time so lost, and the cost

of any extra bunkers consumed in consequence thereof, and all extra proven expenses may be deducted

from the hire. Bunkers used by the Vessel while off-hire and the cost of replacing same shall be for the

Owners’ account and therefore deducted from the hire.

18. Pollution

The Owners shall provide for standard oil pollution coverage equal to the level customarily offered by

the International Group of P&I Clubs, together with the appropriate certificates to that effect. (See also

Clause 6 (Owners to Provide)).

19. Drydocking

The Vessel was last drydocked 6 January 2016. Except in case of emergency or under Clause 48(b), no

drydocking shall take place during the currency of this Charter Party.

20. Total Loss

Should the Vessel be lost, money paid in advance and not earned (reckoning from the date of loss or

being last heard of) shall be returned to the Charterers at once.

21. Exceptions

The act of God, enemies, fire, restraint of princes, rulers and people, and all dangers and accidents of

the seas, rivers, machinery, boilers and navigation, and errors of navigation throughout this Charter

Party, always mutually excepted.


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22. Liberties

The Vessel shall have the liberty to sail with or without pilots, to tow and be towed, to assist vessels in

distress, and to deviate for the purpose of saving life and property.

23. Liens

The Owners shall have a lien upon all cargoes, sub-hires and sub-freights (including deadfreight and

demurrage) belonging or due to the Charterers or any sub-charterers, for any amounts due under this

Charter Party, including general average contributions, and the Charterers shall have a lien on the

Vessel for all monies paid in advance and not earned, and any overpaid hire or excess deposit to be

returned at once. The Charterers will not directly or indirectly suffer, nor permit to be continued, any

lien or encumbrance, which might have priority over the title and interest of the Owners in the Vessel.

The Charterers undertake that during the period of this Charter Party, they will not procure any supplies

or necessaries or services, including any port expenses and bunkers, on the credit of the Owners.

The Owners shall also have a lien over any bunkers on board the Vessel, as well as over any sums due

and/or payable to the Charterers under any sub-charter parties.

24. Salvage

All derelicts and salvage shall be for the Owners’ and the Charterers’ equal benefit after deducting the

Owners’ and the Charterers’ expenses and crew’s proportion.

25. General Average

General average shall be adjusted according to York-Antwerp Rules 1994 and settled in US dollars in

the same place as stipulated in Clause 50 (Law and Arbitration). The Charterers shall procure that all

bills of lading issued during the currency of this Charter Party will contain a provision to the effect that

general average shall be adjusted according to York-Antwerp Rules 1994 and will include the “New

Jason Clause” as per Clause 33(c). Time charter hire will not contribute to general average.

26. Navigation

Nothing herein stated is to be construed as a demise of the Vessel to the Charterers. The Owners shall

remain responsible for the navigation of the Vessel, acts of pilots and tug boats, insurance, crew, and

all other matters, same as when trading for their own account.

27. Cargo Claims

Cargo claims as between the Owners and the Charterers shall be settled in accordance with the Inter-

Club NYPE Agreement 1996 (as amended 1 September 2011), or any subsequent modification or

replacement thereof.

28. Cargo Handling Gear and Lights

The Owners shall maintain the cargo handling gear of the Vessel providing lifting capacity as described

in Appendix A (Vessel Description). The Owners shall also provide on the Vessel for night work lights

as on board, but all additional lights over those on board shall be at the Charterers’ expense. The

Charterers shall have the use of any cargo handling gear on board the Vessel. If required by the

Charterers, the Vessel shall work night and day and all cargo handling gear shall be at the Charterers’

disposal during loading and discharging. In the event of disabled cargo handling gear, or insufficient

power to operate the same, the Vessel is to be considered to be off-hire to the extent that time is

actually lost to the Charterers and the Owners to pay stevedore stand-by charges occasioned thereby,

unless such disablement or insufficiency of power is caused by the Charterers’ stevedores. If required


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by the Charterers, the Owners shall bear the cost of hiring shore gear in lieu thereof, in which case the

Vessel shall remain on-hire, except for actual time lost.

29. Solid Bulk Cargoes/Dangerous Goods

(a) The Charterers shall provide appropriate information on the cargo in advance of loading in accordance

with the requirements of the IMO International Maritime Solid Bulk Cargoes (IMSBC) Code to enable

the precautions which may be necessary for proper stowage and safe carriage to be put into effect. The

information shall be accompanied by a cargo declaration summarising the main details and stating that

the cargo is fully and accurately described and that, where applicable, the test results and other

specifications can be considered as representative for the cargo to be loaded.

(b) If a cargo listed in the IMO International Maritime Dangerous Goods (IMDG) Code (website:

www.imo.org) is agreed to be carried, the Charterers shall provide a dangerous goods transport

document and, where applicable, a container/vehicle packing certificate in accordance with the IMDG

Code requirements. The dangerous goods transport document shall include a certificate or declaration

that the goods are fully and accurately described by the Proper Shipping Name, are classified, packaged,

marked and labelled/placarded correctly and are in all respects in proper condition for transport

according to applicable international and national government regulations.

(c) The Master shall be entitled to refuse cargoes or, if already loaded, to unload them at the Charterers’

risk and expense if the Charterers fail to fulfil their IMSBC Code or IMDG Code obligations as

applicable.

30. Hull Fouling

(a) If, in accordance with the Charterers’ orders, the Vessel remains at or shifts within a place, anchorage

and/or berth for an aggregated period exceeding:

(i) 15 days (or such other period as the parties may agree in writing) in a Tropical Zone or

Seasonal Tropical Zone (default being 15 days)

(ii) 15 days (or such other period as the parties may agree in writing) outside such Zones,

any warranties concerning speed and consumption shall be suspended pending inspection of the

Vessel’s underwater parts including, but not limited to, the hull, sea chests, rudder and propeller.

(b) In accordance with Sub-clause (a), either party may call for inspection which shall be arranged jointly

by the Owners and the Charterers and undertaken at the Charterers’ risk, cost, expense and time.

(c) If, as a result of the inspection either party calls for cleaning of any of the underwater parts, such

cleaning shall be undertaken by the Charterers at their risk, cost, expense and time in consultation with

the Owners.

(i) Cleaning shall always be under the supervision of the Master and, in respect of the underwater

hull coating, in accordance with the paint manufacturers’ recommended guidelines on

cleaning, if any. Such cleaning shall be carried out without damage to the Vessel’s underwater

parts or coating.

(ii) If, at the port or place of inspection, cleaning as required under this Sub-clause (c) is not

permitted or possible, or if the Charterers choose to postpone cleaning, speed and

consumption warranties shall remain suspended until such cleaning has been completed.

(iii) If, despite the availability of suitable facilities and equipment, the Owners nevertheless refuse

to permit cleaning, the speed and consumption warranties shall be reinstated from the time of

such refusal.

(d) Cleaning in accordance with this Clause shall always be carried out prior to redelivery. If, nevertheless,

the Charterers are prevented from carrying out such cleaning, the parties shall, prior to but latest on

redelivery, agree a lump sum payment in full and final settlement of the Owners’ costs and expenses

arising as a result of or in connection with the need for cleaning pursuant to this Clause.


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(e) If the time limits set out in Sub-clause (a) have been exceeded but the Charterers thereafter demonstrate

that the Vessel’s performance remains within the limits of this Charter Party the vessel’s speed and

consumption warranties will be subsequently reinstated and the Charterers’ obligations in respect of

inspection and/or cleaning shall no longer be applicable.

31. Bills of Lading

(a) The Master shall sign bills of lading or waybills for cargo as presented in conformity with mates’

receipts. However, the Charterers or their agents may sign bills of lading or waybills on behalf of the

Master, with the Owners’/Master’s prior written authority, always in conformity with mates’ receipts.

(b) All bills of lading or waybills shall be without prejudice to this Charter Party and the Charterers shall

indemnify the Owners against all consequences or liabilities which may arise from any inconsistency

between this Charter Party and any bills of lading or waybills signed by the Charterers or their agents

or by the Master at their request.

(c) Bill of lading covering deck cargo shall be claused: “Shipped on deck at the Charterers’, Shippers’ and

Receivers’ risk, expense and responsibility, without liability on the part of the Vessel or her Owners for

any loss, damage, expense or delay howsoever caused.”

32. Electronic Bills of Lading Clause

(a) At the Charterers’ option, bills of lading, waybills and delivery orders referred to in this Charter Party

shall be issued, signed and transmitted in electronic form with the same effect as their paper equivalent.

(b) For the purpose of Sub-clause (a) the Owners shall subscribe to and use Electronic (Paperless) Trading

Systems as directed by the Charterers, provided such systems are approved by the International Group

of P&I Clubs. Any fees incurred in subscribing to or for using such systems shall be for the Charterers’

account.

(c) The Charterers agree to hold the Owners harmless in respect of any additional liability arising from the

use of the systems referred to in Sub-clause (b), to the extent that such liability does not arise from

Owners’ negligence.

33. Protective Clauses

The following protective clauses shall be deemed to form part of this Charter Party and all Bills of

Lading or waybills issued under this Charter Party shall contain the following clauses.

(a) General Clause Paramount

This bill of lading shall have effect subject to the provisions of the Carriage of Goods by Sea Act of the

United States, the Hague Rules, or the Hague Visby Rules, as applicable, or such other similar national

legislation as may mandatorily apply by virtue of origin or destination of the bill of lading, (or if no

such enactments are mandatorily applicable, the terms of the Hague Rules shall apply) which shall be

deemed to be incorporated herein, and nothing herein contained shall be deemed a surrender by the

carrier of any of its rights or immunities or an increase of any of its responsibilities or liabilities under

said Act. If any term of this bill of lading be repugnant to said Act to any extent, such term shall be

void to that extent, but no further.

(b) Both-to-Blame Collision Clause

If the ship comes into collision with another ship as a result of the negligence of the other ship and any

act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in

the management of the ship, the owners of the goods carried hereunder will indemnify the carrier

against all loss or liability to the other or non-carrying ship or her owners insofar as such loss or

liability represents loss of, or damage to, or any claim whatsoever of the owners of said goods, paid or

payable by the other or non-carrying ship or her owners to the owners of said goods and set-off,

recouped or recovered by the other or non-carrying ship or her owners as part of their claim against the

carrying ship or carrier. The foregoing provisions shall also apply where the owners, operators or those


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in charge of any ships or objects other than, or in addition to, the colliding ships or objects are at fault

in respect to a collision or contact.

(c) New Jason Clause

In the event of accident, danger, damage or disaster before or after the commencement of the voyage,

resulting from any cause whatsoever, whether due to negligence or not, for which, or for the

consequences of which, the carrier is not responsible, by statute, contract, or otherwise, the goods,

shippers, consignees, or owners of the goods shall contribute with the carrier in general average to the

payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred,

and shall pay salvage and special charges incurred in respect of the goods. If a salving ship is owned or

operated by the carrier, salvage shall be paid for as fully as if salving ship or ships belonged to

strangers. Such deposit as the carrier or his agents may deem sufficient to cover the estimated

contribution of the goods and any salvage and special charges thereon shall, if required, be made by the

goods, shippers, consignees or owners of the goods to the Carrier before delivery.

34. War Risks

(a) For the purpose of this Clause, the words:

(i) “Owners” shall include the shipowners, bareboat charterers, disponent owners, managers or

other operators who are charged with the management of the Vessel, and the Master; and

(ii) “War Risks” shall include any actual, threatened or reported:

war, act of war, civil war or hostilities; revolution; rebellion; civil commotion; warlike operations;

laying of mines; acts of piracy and/or violent robbery and/or capture/seizure (hereinafter “Piracy”);

acts of terrorists; acts of hostility or malicious damage; blockades (whether imposed against all vessels

or imposed selectively against vessels of certain flags or ownership, or against certain cargoes or crews

or otherwise howsoever), by any person, body, terrorist or political group, or the government of any

state or territory whether recognized or not, which, in the reasonable judgement of the Master and/or

the Owners, may be dangerous or may become dangerous to the Vessel, cargo, crew or other persons

on board the Vessel.

(b) The Vessel shall not be obliged to proceed or required to continue to or through, any port, place, area or

zone, or any waterway or canal (hereinafter “Area”), where it appears that the Vessel, cargo, crew or

other persons on board the Vessel, in the reasonable judgement of the Master and/or the Owners, may

be exposed to War Risks whether such risk existed at the time of entering into this Charter Party or

occurred thereafter. Should the Vessel be within any such place as aforesaid, which only becomes

dangerous, or may become dangerous, after entry into it, the Vessel shall be at liberty to leave it.

(c) The Vessel shall not be required to load contraband cargo, or to pass through any blockade as set out in

Sub-clause (a), or to proceed to an Area where it may be subject to search and/or confiscation by a

belligerent.

(d) If the Vessel proceeds to or through an Area exposed to War Risks, the Charterers shall reimburse to

the Owners any additional premiums required by the Owners' insurers and the costs of any additional

insurances that the Owners reasonably require in connection with War Risks.

(e) All payments arising under Sub-clause (d) shall be settled within fifteen (15) days of receipt of Owners’

supported invoices or on redelivery, whichever occurs first.

(f) If the Owners become liable under the terms of employment to pay to the crew any bonus or additional

wages in respect of sailing into an Area which is dangerous in the manner defined by the said terms,

then the actual bonus or additional wages paid shall be reimbursed to the Owners by the Charterers at

the same time as the next payment of hire is due, or upon redelivery, whichever occurs first.

(g) The Vessel shall have liberty:

(i) to comply with all orders, directions, recommendations or advice as to departure, arrival,

routes, sailing in convoy, ports of call, stoppages, destinations, discharge of cargo, delivery, or

in any other way whatsoever, which are given by the government of the nation under whose


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flag the Vessel sails, or other government to whose laws the Owners are subject, or any other

government of any state or territory whether recognized or not, body or group whatsoever

acting with the power to compel compliance with their orders or directions;

(ii) to comply with the requirements of the Owners’ insurers under the terms of the Vessel’s

insurance(s);

(iii) to comply with the terms of any resolution of the Security Council of the United Nations, the

effective orders of any other Supranational body which has the right to issue and give the

same, and with national laws aimed at enforcing the same to which the Owners are subject,

and to obey the orders and directions of those who are charged with their enforcement;

(iv) to discharge at any alternative port any cargo or part thereof which may expose the Vessel to

being held liable as a contraband carrier;

(v) to call at any alternative port to change the crew or any part thereof or other persons on board

the Vessel when there is reason to believe that they may be subject to internment,

imprisonment, detention or similar measures.

(h) If in accordance with their rights under the foregoing provisions of this Clause, the Owners shall refuse

to proceed to the loading or discharging ports, or any one or more of them, they shall immediately

inform the Charterers. No cargo shall be discharged at any alternative port without first giving the

Charterers notice of the Owners’ intention to do so and requesting them to nominate a safe port for

such discharge. Failing such nomination by the Charterers within forty-eight (48) hours of the receipt

of such notice and request, the Owners may discharge the cargo at any safe port of their own choice.

All costs, risk and expenses for the alternative discharge shall be for the Charterers’ account.

(i) The Charterers shall indemnify the Owners for claims arising out of the Vessel proceeding in

accordance with any of the provisions of Sub-clauses (b) to (h) which are made under any bills of

lading, waybills or other documents evidencing contracts of carriage.

(j) When acting in accordance with any of the provisions of Sub-clauses (b) to (h) of this Clause anything

is done or not done, such shall not be deemed a deviation, but shall be considered as due fulfilment of

this Charter Party.

35. Ice

The Vessel shall not be obliged to force ice but, subject to the Owners’ prior approval having due

regard to its size, construction and class, may follow ice-breakers. The Vessel shall not be required to

enter or remain in any icebound port or area, nor any port or area where lights or lightships have been

or are about to be withdrawn by reason of ice, nor where there is risk that in the ordinary course of

things the Vessel will not be able on account of ice to safely enter and remain in the port or area or to

get out after having completed loading or discharging.

36. Requisition

Should the Vessel be requisitioned by the government of the Vessel’s flag or other government to

whose laws the Owners are subject during the period of this Charter Party, the Vessel shall be deemed

to be off-hire during the period of such requisition, and any hire paid by the said government in respect

of such requisition period shall be retained by Owners. The period during which the Vessel is on

requisition to the said government shall count as part of the period provided for in this Charter Party. If

the period of requisition exceeds ninety (90) days, either party shall have the option of cancelling this

Charter Party and no consequential claim in respect thereof may be made by either party.

37. Stevedore Damage

Notwithstanding anything contained herein to the contrary, the Charterers shall pay for any and all

damage to the Vessel caused by stevedores provided the Master has notified the Charterers and/or their

agents in writing within twenty-four (24) hours of the occurrence but in case of hidden damage latest


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when the damage could have been discovered by the exercise of due diligence. Such notice to describe

the damage and to invite Charterers to appoint a surveyor to assess the extent of such damage.

(a) In case of any and all damage affecting the Vessel’s seaworthiness and/or the safety of the crew and/or

affecting the trading capabilities of the Vessel, the Charterers shall immediately arrange for repairs of

such damage at their expense and the Vessel is to remain on-hire until such repairs are completed and if

required passed by the Vessel’s classification society.

(b) Any and all damage not described under Sub-clause (a) above shall be repaired, at the Charterers’

option, before or after redelivery concurrently with the Owners’ work. In such case no hire and/or

expenses will be paid to the Owners except and insofar as the time and/or expenses required for the

repairs for which the Charterers are responsible, exceed the time and/or expenses necessary to carry out

the Owners’ work.

38. Slow Steaming

(a) The Charterers may at their discretion provide, in writing to the Master, instructions to reduce speed or

Revolutions Per Minute (main engine RPM) and/or instructions to adjust the Vessel’s speed to meet a

specified time of arrival at a particular destination. Slow Steaming – Where the Charterers give

instructions to the Master to adjust the speed or RPM, the Master shall, subject always to the Master’s

obligations in respect of the safety of the Vessel, crew and cargo and the protection of the marine

environment, comply with such written instructions, provided that the engine(s) continue(s) to operate

above the cut-out point of the Vessel's engine(s) auxiliary blower(s) and that such instructions will not

result in the Vessel’s engine(s) and/or equipment operating outside the manufacturers’/designers’

recommendations as published from time to time.

(b) At all speeds the Owners shall exercise due diligence to ensure that the Vessel is operated in a manner

which minimises fuel consumption, always taking into account and subject to the following:

(i) the Owners’ warranties under this Charter Party relating to the Vessel’s speed and

consumption;

(ii) the Charterers’ instructions as to the Vessel’s speed and/or RPM and/or specified time of

arrival at a particular destination;

(iii) the safety of the Vessel, crew and cargo and the protection of the marine environment; and

(iv) the Owners’ obligations under any bills of lading, waybills or other documents evidencing

contracts of carriage issued by them or on their behalf.

(c) For the purposes of Sub-clause (b), the Owners shall exercise due diligence to minimise fuel

consumption:

(i) when planning voyages, adjusting the Vessel’s trim and operating main engine(s) and

auxiliary engine(s);

(ii) by making optimal use of the Vessel’s navigation equipment and any additional aids provided

by the Charterers, such as weather routing, voyage optimization and performance monitoring

systems; and

(iii) by directing the Master to report any data that the Charterers may reasonably request to further

improve the energy efficiency of the Vessel.

(d) The Owners and the Charterers shall share any findings and best practices that they may have identified

on potential improvements to the Vessel’s energy efficiency.

(e) For the avoidance of doubt, where the Vessel proceeds at a reduced speed or with reduced RPM

pursuant to Sub-clause (a), then provided that the Master has exercised due diligence to comply with

such instructions, this shall constitute compliance with, and there shall be no breach of, any obligation

requiring the Vessel to proceed with utmost and/or due despatch (or any other such similar/equivalent

expression).

(f) The Charterers shall procure that this Clause be incorporated into all sub-charters and contracts of

carriage issued pursuant to this Charter Party. The Charterers shall indemnify the Owners against all


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consequences and liabilities that may arise from bills of lading, waybills or other documents evidencing

contracts of carriage being issued as presented to the extent that the terms of such bills of lading,

waybills or other documents evidencing contracts of carriage impose or result in breach of the Owners’

obligation to proceed with due despatch or are to be held to be a deviation or the imposition of more

onerous liabilities upon the Owners than those assumed by the Owners pursuant to this Clause.

40. Taxes

Charterers are to pay all local, State, National taxes and/or dues assessed on the Vessel or the Owners

resulting from the Charterers’ orders herein, whether assessed during or after the currency of this

Charter Party including any taxes and/or dues on cargo and/or freights and/or sub-freights and/or hire

(excluding taxes levied by the country of the flag of the Vessel or the Owners). In the event the

Owners/Vessel/her flag state are exempt from any taxes, the Owners shall seek such exemption and

filing costs for such exemption, if any, shall be for the Charterers’ account and no charge for such taxes

shall be assessed to the Charterers.

41. Stowaways

(a) If stowaways have gained access to the Vessel by means of secreting away in the goods and/or

containers or by any other means related to the cargo operation, this shall amount to breach of this

Charter Party. The Charterers shall be liable for the consequences of such breach and hold the Owners

harmless and keep them indemnified against all claims; costs (including but not limited to victualing

costs for stowaways whilst on board and repatriation); losses; and fines or penalties, which may arise

and be made against them. The Charterers shall, if required, place the Owners in funds to put up bail or

other security. The Vessel shall remain on hire for any time lost as a result of such breach.

(b) Save for those stowaways referred to in Sub-clause (a), if stowaways have gained access to the Vessel

this shall amount to a breach of this Charter Party. The Owners shall be liable for the consequences of

such breach and hold the Charterers harmless and keep them indemnified against all claims; costs;

losses; and fines or penalties, which may arise and be made against them. The Vessel shall be off-hire

for any time lost as a result of such breach.

43. Smuggling

(a) In the event of smuggling by the Master, other Officers and/or ratings, this shall amount to a breach of

this Charter Party. The Owners shall be liable for the consequences of such breach and hold the

Charterers harmless and keep them indemnified against all claims, costs, losses, and fines and penalties

which may arise and be made against them. The Vessel shall be off-hire for any time lost as a result of

such breach.

(b) If unmanifested narcotic drugs and/or any other illegal substances are found secreted in the goods

and/or containers or by any other means related to the cargo operation, this shall amount to a breach of

this Charter Party. The Charterers shall be liable for the consequences of such breach and hold the

Owners, Master, officers and ratings of the Vessel harmless and keep them indemnified against all

claims, costs, losses, and fines and penalties which may arise and be made against them individually or

jointly. The Charterers shall, if required, place the Owners in funds to put up bail or other security. The

Vessel shall remain on hire for any time lost as a result of such breach.

44. International Safety Management (ISM)

During the duration of this Charter Party, the Owners shall procure that both the Vessel and “the

Company” (as defined by the ISM Code) shall comply with the requirements of the ISM Code. Upon

request the Owners shall provide a copy of the relevant Document of Compliance (DOC) and Safety

Management Certificate (SMC) to the Charterers. Except as otherwise provided in this Charter Party,


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loss, damage, expense or delay caused by failure on the part of the Owners or “the Company” to

comply with the ISM Code shall be for the Owners’ account.

45. International Ship and Port Facility Security Code (ISPS Code)/Maritime Transportation

Security Act (MTSA)

(a)

(i) The Owners shall comply with the requirements of the ISPS and the relevant amendments to

Chapter XI of Safety of Life at Sea (SOLAS) (ISPS Code) relating to the Vessel and “the

Company” (as defined by the ISPS Code). If trading to or from the US or passing through US

waters, the Owners shall also comply with the requirements of the MTSA relating to the

Vessel and the “Owner” (as defined by the MTSA).

(ii) Upon request the Owners shall provide the Charterers with a copy of the relevant International

Ship Security Certificate (ISSC) (or the interim ISSC) and the full style contact details of the

Company Security Officer (CSO).

(iii) Loss, damages, expense or delay (excluding consequential loss, damages, expense or delay)

caused by failure on the part of the Owners or “the Company”/“Owner” to comply with the

requirements of the ISPS Code/MTSA or this Clause shall be for the Owners’ account, except

as otherwise provided in this Charter Party.

(b)

(i) The Charterers shall provide the Owners and the Master with their full style contact details

and, upon request, any other information the Owners require to comply with the ISPS

Code/MTSA. Where sub-letting is permitted under the terms of this Charter Party, the

Charterers shall ensure that the contact details of all sub-charterers are likewise provided to

the Owners and the Master. Furthermore, the Charterers shall ensure that all sub-charter

parties they enter into during the period of this Charter Party contain the following provision:

“The Charterers shall provide the Owners with their full style contact details and, where sub-

letting is permitted under the terms of the charter party, shall ensure that contact details of all

sub- charterers are likewise provided to the Owners”.

(ii) Loss, damages, expense or delay (excluding consequential loss, damages, expense or delay)

caused by failure on the part of the Charterers to comply with this Clause shall be for the

Charterers’ account, except as otherwise provided in this Charter Party.

(c) Notwithstanding anything else contained in this Charter Party all delay, costs or expenses whatsoever

arising out of or related to security regulations or measures required by the port facility or any relevant

authority in accordance with the ISPS Code/MTSA including, but not limited to, security guards,

launch services, vessel escorts, security fees or taxes and inspections, shall be for the Charterers’

account, unless such costs or expenses result solely from the negligence of the Owners, Master or crew

or the previous trading of the Vessel, the nationality of the crew, crew visas, the Vessel’s flag or the

identity of the Owners’ managers. All measures required by the Owners to comply with the Ship

Security Plan shall be for the Owners’ account.

(d) If either party makes any payment which is for the other party’s account according to this Clause, the

other party shall indemnify the paying party.

46. Sanctions

(a) The Owners shall not be obliged to comply with any orders for the employment of the Vessel in any

carriage, trade or on a voyage which, in the reasonable judgement of the Owners, will expose the

Vessel, Owners, managers, crew, the Vessel’s insurers, or their re-insurers, to any sanction or

prohibition imposed by any State, Supranational or International Governmental Organization.

(b) If the Vessel is already performing an employment to which such sanction or prohibition is

subsequently applied, the Owners shall have the right to refuse to proceed with the employment and the


P a g e | 18

Charterers shall be obliged to issue alternative voyage orders within forty-eight (48) hours of receipt of

the Owners’ notification of their refusal to proceed. If the Charterers do not issue such alternative

voyage orders the Owners may discharge any cargo already loaded at any safe port (including the port

of loading). The Vessel to remain on hire pending completion of the Charterers’ alternative voyage

orders or delivery of cargo by the Owners and the Charterers to remain responsible for all additional

costs and expenses incurred in connection with such orders/delivery of cargo. If in compliance with this

Sub-clause (b) anything is done or not done, such shall not be deemed a deviation.

(c) The Charterers shall indemnify the Owners against any and all claims whatsoever brought by the

owners of the cargo and/or the holders of Bills of Lading and/or sub-charterers against the Owners by

reason of the Owners’ compliance with such alternative voyage orders or delivery of the cargo in

accordance with Sub-clause (b).

(d) The Charterers shall procure that this Clause shall be incorporated into all sub-charters issued pursuant

to this Charter Party.

47. Ballast Water Exchange Regulations

If ballast water exchanges are required by any coastal state where the vessel is trading, the

Owners/Master shall comply with same at the Charterers’ time, risk, and expense.

48. Miscellaneous

(a) Should the Vessel at the expiry of the described employment period be on a ballast voyage to the place

of redelivery or on a laden voyage, reasonably expected to be completed within the employment period

when commenced, the Charterers shall have the use of the Vessel on the same conditions and at the

same rate or the prevailing market rate, whichever is higher, for any extended time as may be necessary

for the completion of the last voyage of the Vessel to the place of redelivery.

(b) The Owners shall have the option to place the Vessel in drydock during the currency of this Charter

Party at a convenient time and place, to be mutually agreed upon between the Owners and the

Charterers, for bottom cleaning and painting and/or repair as required by class or dictated by

circumstances. (see also Clause 19 (Drydocking)).

(c) The Charterers to have the option of adding any time the Vessel is off-hire to the Charter period. Such

option shall be declared in writing not less than one (1) month before the expected date of redelivery,

or latest one (1) week after the event if such event occurs less than one (1) month before the expected

date of redelivery.

(d) The Charterers shall have the privilege of flying their own house flag and painting the Vessel with their

own markings. The Vessel shall be repainted in the Owners’ colors before termination of the Charter

Party. Cost and time of painting, maintaining and repainting those changes effected by the Charterers

shall be for the Charterers’ account.

49. Commissions

A commission of one and a quarter (1.25) per cent is payable by the Vessel and the Owners to

Shinorimaru Inc. on hire earned and paid under this Charter Party, and also upon any continuation or

extension of this Charter Party. An address commission of one (1) per cent on the hire earned shall be

deducted by the Charterers on payment of the hire earned under this Charter Party.

50. Law and Dispute Resolution

This Charter Party shall be governed by and construed in accordance with the laws of Singapore,

excluding the conflicts of laws rules.

Each party irrevocably submits to the exclusive jurisdiction of the Singapore International Commercial

Court any dispute, controversy or claim arising in any way out of or in connection with this Charter


P a g e | 19

Party (including, without limitation as to: (1) any contractual, pre-contractual or non-contractual rights,

obligations or liabilities; or (2) the existence, validity, enforceability or termination of this Charter

Party or this Clause.

51. Notices

All notices, requests and other communications required or permitted by any clause of this Charter

Party shall be given in writing and shall be sufficiently given or transmitted if delivered by hand, email,

express courier service or registered mail and addressed if to the Owners, to ABC-Straße 19, 20354

Hamburg, Germany or such other address or email address as the Owners may hereafter designate in

writing, and if to the Charterers to Two Marina Boulevard #19-05, Singapore 018990 or such other

address or email address as the Charterers may hereafter designate in writing. Any such communication

shall be deemed to have been given on the date of actual receipt by the party to which it is addressed.

52. Headings

The headings in this Charter Party are for identification only and shall not be deemed to be part hereof

or be taken into consideration in the interpretation or construction of this Charter Party.

53. Singular/Plural

The singular includes the plural and vice-versa as the context admits or requires.

FOR THE OWNERS

Angelman S

FOR THE CHARTERERS

波特龍

Name: Angelman Schneider

Title: Managing Director

Name: Dragonite Potter

Title: Chartering Manager


From: Gordon GrillSent: Thursday, 1 September, 2016 10:21 AMTo: 'Eric Yan'Cc: Nuriputri Bte Mohammad; [email protected]: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP

Gd Day

Confirmed fixed on TARDY TESSA to INFERNO, coal orevoy

Nuri, c/p cleared with legal (s’pore), pls book entry, tks.

Best,GG

From: Eric YanSent: Thursday, 1 September, 2016 8:02 AMTo: 'Gordon Grill'Cc: [email protected]; Titipuspa Baswani'Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP

Gd Day

Confirm we are on fixed clean on coal orevoy attached as follows:

STATUS – Clean fixture recap

1. SHIPBROKERAll’s Good Brokerage Pte Ltd – Eric YanTwo Marina Boulevard #19-03Singapore 018990

2. PLACE AND DATE OF CHARTER PARTYSingapore, 01-09-2016

3. OWNERSFurnace Trading Pte LtdTwo Marina Boulevard #19-05Singapore 018990

4. CHARTERERSInferno Resources Sdn BhdSuite 02, Level 3, South Wing, Pasar Borong PandanKangkar Tebrau, Pusat Perdagangan Pandan81100 Johor BahruMalaysia

5. VESSEL’S NAME AND FLAGM.V. TARDY TESSA, Singapore

6. RATE IN TONS PER HOURMin 5,000 MT/hr

7. VESSEL’S PARTICULARSIMO No: 99223311Call Sign: XX2VV3Length Over All (LOA): 223.060 Metres

IMLAM release date 09/12/16 20IMLAM release date 09/12/16 20

Length Between Perpendiculars (LBP): 217.000 MetresExtreme breadth (Beam): 32.260 MetresMoulded depth: 19.900 MetresDraught 14.200 MetresNet Tonnage: 25,350.00 Metric TonnesGross Tonnage: 42,495.00 Metric TonnesDeadweight: 76,822.00 Metric TonnesP & I Club - Full Style: SCOTLAND YARD

8. PRESENT POSITION AND PRIOR COMMITMENTSVessel currently at anchorage near Shanghai, waiting to loadETA Singapore 14th SEPETD Singapore 20th SEPWOG/AGW/WPAGW/WP

9. FIRST LAYDAY28th SEP

10. EXPECTED LOAD READINESS DATE28th SEP

11. CANCELLING DATE3rd OCT

12. SUBSTITUTIONPermitted

13. CARGOAustralian AnthraciteMin 75k MT / Max 85k MT CHOPT

14. ADVANCE NOTICES4/3/2/1 load port, 2/1 disport

15. LOADING PORTNewcastle, NSW

At load port when tendering NOR the vessel’s hoods/hatches shall be washed, swept, clean drywithout loose rust scales and free of any residues of previous cargo(es), ready and suitable to receivethe intended/agreed cargo, to the satisfaction of an independent surveyor before loading operationcommences.

If vessel is found not in all respects ready to load as per above, all time lost as from the moment ofholds rejection until holds have been reinspected and found ready in all respects ready to load as perabove not to count as laytime. Should some of the holds be accepted, and loading commences,laytime to count prorata to the number of holds accepted.

Charterers option to load 1 or more berths against payment of shifting expenses.If outside same port Charterers to pay additional port costs (defined as cost over and above the costof loading the quantity stemmed for upriver loading at one port) directly to agents.Actual shifting time to count as laytime except up/downriver steaming which time not to count.Additional berths upriver not to count as additional ports in computation of freight.

16. DISCHARGE PORT1 spsb China (Dalian, Jinzhou, Yingkou, Yantai, Qingdao, Shanghai, Tianjin, Ningbo) CHOPT

CHTRS to declare discharge port when vessel passes Singapore for bunkering.

All time from arrival pilot station till dropping outbound pilot to count as laytime or demurrage if vesselon demurrage except time used for vessels purposes which not to count.


17. NOTICE TIME IN RUNNING HOURS6hrs Notice load and disport (even if vessel on demurrage) UU

18. LAYTIME3 WWD SHINC each for loading and discharge, to be reversible

19. FREIGHTDalian: USD 10.01 PMTJinzhou: USD 10.45 PMTYingkou: USD 10.15 PMTYantai: USD 9.78 PMTQingdao: USD 9.64 PMTShanghai: USD 9.18 PMTTianjin: USD 9.92 PMTNingbo: USD 9.24 PMT

Payment: 100 % FRT to be paid within five (5) banking days after completion of loading andsigning/releasing B/Ls marked ‘freight payable as per charter party’ and rcpt of owners’ FRT INV, butin any case BBB. In case CHTRS require ‘freight prepaid’ B/Ls, remittance confirmation will beadvised to the owners and FRT prepaid B/Ls to be issued without delay.

FRT TAX FOR CHRTS ACCOUNT

Owners’ Remittance Details:Bank : Big Wealthy Bank, Singapore BranchAccount No. : 6110-002-189Swift Code : SGGSXXCGQuote : GG0109

20. DEMURRAGE / DESPATCH RATEUSD 140k PDPR / HDWTS BENDS

21. AGENTS AT LOAD PORTBlackcoal Shipping Services Pte Ltd52 Penjuru Rd, #01-10Singapore 609146

22. AGENTS AT LOAD PORTBlackcoal Shipping Services Pte Ltd52 Penjuru Rd, #01-10Singapore 609146

23. GENERAL AVERAGELondon YAR

24. BROKER’S COMMISSION2.5% ttl comm on freight/deadfreight/demurrage for division

25. TAXESAll and any taxes/dues on vessel, freight and/or demurrage to be to owners’ account. All and anytaxes/dues on CGO to be for CHTR’s account.

26. BILL OF LADINGOwners to allow Master to sign and issue B/Ls on behalf of owners. No liner or through B/Ls to beissued.

27. CERTIFICATESVessel to hold all valid certificates including classification and other certificates as to sea worthinessof the carrier. Owners guarantee to maintain full P&I cover for the duration of the c/p.


28. ACT OF GODTHE ACT OF GOD, HER MAJESTY’S ENEMIES, ARREST AND/OR RESTRAINS OF RULERS,PRINCES AND PEOPLE, QUARANTINE, FIRE ON BOARD IN BULK OR CRAFT OR ON SHORE,ICE, BARRATRY OF THE MASTER AND CREW, ENEMIES, PIRATES, ROBBERS BY LAND ORSEA, ACCIDENTS TO, AND DAMAGE AND DETENTION FROM, BOILERS AND OF MACHINERY,COLLISIONS, STRANDING, JETTISON OR FROM ANY ACT OF NEGLECT, DEFAULT OR ERRORIN JUDGMENT WHATSOEVER OF THE PILOT, MASTER, CREW OR OTHER SERVANTS OF THESHIP OWNERS IN THE MANAGEMENT AND/OR THE NAVIGATION OF THE STEAMER, AND ALLAND EVERY OTHER DANGERS AND ACCIDENTS OF THE SEAS, RIVERS AND CANALS OFWHATEVER NATURE AND KIND WHATSOEVER, BEFORE AND DURING THE SAID VOYAGEALWAYS MUTUALLY EXCEPTED. STEAMER HAS LIBERTY TO CALL AT ANY PORT OR PORTSIN ANY ORDER, OR PLACES, TO BUNKER OR TO DEVIATE FOR THE PURPOSE OF SAVINGLIFE OR PROPERTY, WITH LEAVE TO SAIL WITHOUT PILOTS, AND TOW OR TO BE TOWED,AND ASSIST VESSELS OR TO BE ASSISTED IN ALL SITUATIONS WHATSOEVER. SALVAGEAND/OR TOWAGE FOR OWNER’S SOLE BENEFIT. SHIP NOT ANSWERABLE FOR LOSSESTHROUGH EXPLOSION, BURSTING OF BOILERS, BREAKAGE OF SHAFTS OR ANY LATENTDEFECT IN THE MACHINERY OR HULL NOT RESULTING FROM WANT OF DUE DILIGENCE BYOWNERS OF THE SHIP OR ANY OF THEM OR BY THE SHIP’S HUSBAND OR MANAGER.

29. LAW & DISPUTE RESOLUTIONSingapore law and arbitration as per SCMA Rules with 3 arbitrators

Pls comment if any missed out.

Eric YANAll’s Good Brokerage Pte LtdTwo Marina Boulevard #19-03, Singapore 018990T : +65 6123 4567 | M : +65 8765 4321 | skype bss_eric | line bss_eric123eric.yan@ blackcoalshipping.com | www.blackcoalshipping.com

This message is intended only for the named recipient and may contain confidential, proprietary orlegally privileged information. No confidentiality or privilege is waived or lost by any misdirectedtransmission.If you receive this message in error, please notify us immediately by return e-mail and delete thismessage from your system. If you are not the intended recipient, you must not use, disclose,distribute or copy any part of this message.


This document is a computer generated COAL-OREVOY form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification madeto the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage orexpense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

1.1. Shipbroker BIMCOSTANDARD COAL AND ORE CHARTER PARTYCODE NAME: COAL-OREVOY PART I

2.2. Place and date of Charter Party

3.3. Owners (full style and address) 4.4. Charterers (full style and address)

5.5. +1> > 18G> �: -91�-: 0�28-3 6.6. Rate in tons per hour (load.) (Cl. 1(b)(iv))

7.7. +1> > 18G> �<-=?5/@8-=> �(Cl. 1(b)(v)) 8.8. Present position and prior commitments, if knownPresent position and prior commitments, if knownPresent position and prior commitments, if known (Cl.2(b))

9.9. First layday (Cl. 2(a)) 10.10. Expected load readiness dateExpected load readiness dateExpected load readiness date (Cl. 2(b))

11. Cancelling date (also state if other period of declarationCancelling date (also state if other period of declarationCancelling date (also state if other period of declarationof cancelling agreed) (Cl. 3(a))

12. ) @.> ?5?@?5;: �> ?-?1�E: ;F�52�: ;?�-3=110�(Cl. 5)

13. Cargo / margin / lts or mts (Cl. 6)

14. � 0A-: /1�: ;?5/1> �8;-0�-: 0�05> /4-=35: 3�) ?-?1�: @9.1=�;2�=@: : 5: 3�0-D> G�: ;?5/1�?;�.1�35A1: �-: 0�?;�B4;9�� 0A-: /1�: ;?5/1> �8;-0�-: 0�05> /4-=35: 3�) ?-?1�: @9.1=�;2�=@: : 5: 3�0-D> G�: ;?5/1�?;�.1�35A1: �-: 0�?;�B4;9�� 0A-: /1�: ;?5/1> �8;-0�-: 0�05> /4-=35: 3�) ?-?1�: @9.1=�;2�=@: : 5: 3�0-D> G�: ;?5/1�?;�.1�35A1: �-: 0�?;�B4;9�(Cl. 7)

15. Loading port(s) / berth(s)Loading port(s) / berth(s) (Cl.(Cl. 8(a))8(a)) 16. Discharging port(s) / berth(s) (Cl. 8(b))

17. Notice time in running hours (load and discharging) (only to be filled in if agreed) (Cl. 9(b)(i))

18. Laytime (if separate laytime for load and discharging is agreed, fill in a) and b); If total laytime for load and discharging,fill in c) only) (Cl. 9(b)(iv)) & 9(b)(v))

a)a) Laytime for loading

b)b) Laytime for discharging

c)c) Total laytime for loading and discharging

19. Laytime exceptions (loading) (Cl. 9(c)(i)) 20. Laytime exceptions (discharging) (Cl. 9(c)(i))


(continued) COAL-OREVOY BIMCO Standard Coal and Ore Charter Party PART I

This document is a computer generated COAL-OREVOY form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification madeto the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage orexpense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

21. Demurrage rate (loading) (Cl. 9(e)(ii)) 22. Demurrage rate (discharging) (Cl. 9(e)(ii))

23. Despatch money (load &/or discharging) (Optional; ifagreed indicate rate of despatch money) (Cl. 9(e)(iii))

24. <YMQOP[ [I_ %Z[I[M ^PM[PMY NWY B^VMYZc WY 8PIY[MYMYZcaccount) (Cl. 13(c)

25. Agents at loading port(s) (Cl. 14) 26. Agents at discharging port(s) (Cl. 14)

27. Freight rate per metric ton (state whether fully or partlyprepaid) (Cl. 15)

28. Freight payment (currency and when/where payable; alsostate beneficiary and bank account) (Cl. 15)

29. General average shall be adjusted/settled at (Cl. 22) 30. Dispute Resolution (state 26(a), 26(b) or 26(c) of Cl. 26,as agreed; if 26(c) agreed state place of arbitration) (if notfilled in 26(a) shall apply) (Cl. 26)

31. Brokerage commission and to whom payable (Cl. 27) 32. Numbers of additional clauses covering specialprovisions, if agreed

It is mutually agreed that this Charter Party shall be performed subject to the conditions contained herein consisting ofPART I including additional clauses, if any agreed and stated in Box 32, and PART II. In the event of a conflict of conditions,the provisions of PART I shall prevail over those of PART II to the extent of such conflict but no further.

Signature (Owners) Signature (Charterers)


PART IIc7C5@-CE9HCJd F]KXNK[N 7YKV KXN C[O 7RK[]O[ DK[]b

1. Vessel 1(a) The Owners shall exercise due diligence: 2(i) before and at the beginning of the loaded voyage 3

to make the Vessel seaworthy and in every way 4fit for the voyage and for the trade for which the 5Vessel is employed; 6

(ii) throughout the currency of this Charter Party to 7ensure that the Vessel and her Master and crew 8comply with all safety, health and other applicable 9YNd` N[Q _RTbYNaV\[` \S aUR KR``RYk` SYNT HaNaR N[Q 10of the places where she trades necessary to secure 11the safe and unhindered loading of the cargo, 12performance of the voyage and discharging of the 13cargo. 14

(b) The Vessel shall be: 15(i) classed as stated in Box 7 and the Owners 16

warrant that this class shall be maintained 17throughout the currency of this Charter Party; 18

(ii) fully insured in respect of loss of or damage to 19the cargo by a Protection and Indemnity Club or 20liability underwriter and the Owners shall provide, 21on request, evidence of such insurance; 22

(iii) insured for Hull and Machinery and basic War 23Risks purposes; 24

(iv) suitable for mechanical loading of the cargo and 25capable of receiving the cargo at the rate (if any) 26specified in Box 6 and be suitable for grab 27discharge, failing which Clause (b) (iii) shall apply 28and the Owners shall reimburse the Charterers 29any actual extra discharge costs; 30

(v) equipped to meet the technical requirements if 31and as specified in Box 7. 32

2. First Layday, Present Position and Expected Load 33Readiness 34(a) Laydays shall not commence before 00.00 hours 35on the date stated in Box 9. However, notice of 36readiness may be given before that date and notice 37time, if provided for in Box 17, shall run forthwith. 38(b) Present position of Vessel as per Box 8. 39Commitments prior to commencement of this Charter 40are as per Box 8. Expected load readiness as per 41Box 10. 42

3. Cancelling 43(a) The Charterers shall have the option of cancelling 44the Charter Party if the Vessel has not tendered notice 45of readiness to load on or before 23.59 hours on the 46cancelling date stated in Box 11. 47(b) Should the Owners anticipate that, despite the 48exercise of due diligence, the Vessel will not be ready 49to load by the cancelling date, they shall notify the 50Charterers thereof without delay stating the expected 51QNaR \S aUR KR``RYk` _RNQV[R`` a\ Y\NQ N[Q N`XV[T 52whether the Charterers will exercise their option of 53cancelling the Charter Party, or agree to a new 54cancelling date. The Charterers must declare such 55option within 2 working days as applied at the 569UN_aR_R_`k ]YNPR \S Ob`V[R`` NSaR_ aUR _RPRV]a \S the 57Ed[R_`k [\aVPR) @S aUR 9UN_aR_R_` Q\ [\a ReR_PV`R aURV_ 58option of cancelling, then this Charter Party shall be 59deemed to be amended such that the seventh day 60NSaR_ aUR [Rd _RNQV[R`` QNaR àNaRQ V[ aUR Ed[R_`k 61notification to the Charterers shall be the new 62cancelling date. The provisions of sub-clause (b) shall 63\]R_NaR \[Yf \[PR' N[Q V[ PN`R \S aUR KR``RYk` Sb_aUR_ 64delay, the Charterers shall have the option of cancelling 65the Charter Party if the Vessel has not tendered notice 66

of readiness to load on or before 23.59 hours on the 67new cancelling date. 68(c) The Charterers shall in any event declare whether 69they exercise any option of cancelling under this Clause 70no later than the time of the KR``RYk` _RNQV[R`` a\ Y\NQ) 71

4. Subletting, Assigning 72The Charterers shall have the liberty of subletting or 73assigning this Charter Party to any individual or 74company, but the Charterers shall always remain 75responsible for the due fulfilment of all the terms and 76conditions of this Charter Party and shall warrant that 77any such sublet or assignment to another party will 78not result in the Vessel being restricted in her future 79trading. 80

5. Substitution 81The Owners shall have liberty to substitute a Vessel, 82]_\cVQRQ aUNa `bPU `bOàVabaR KR``RYk` ZNV[ ]N_aVPbYN_` 83N[Q ]\`VaV\[ ÙNYY OR `bOWRPa a\ aUR 9UN_aR_R_`k ]_V\_ 84approval, which is not to be unreasonably withheld, 85but the Owners under this Charter Party shall remain 86responsible to the Charterers for the due fulfilment of 87aUV` 9UN_aR_ FN_af) IUV` 9YNb`R ÙNYY [\a N]]Yf VS iD\j 88inserted in Box 12. 89

6. Cargo 90(a) The Charterers warrant that unless otherwise 91specified in Part I, the cargo referred to in Box 13 is 92non-hazardous and non-dangerous for carriage 93according to applicable safety regulations including, 94but not limited to, IMO Code(s). 95(b) The Charterers shall have the right to ship parcels 96of different qualities and/or for different receivers in 97`R]N_NaR U\YQ` dVaUV[ aUR KR``RYk` [Nab_NY `RT_RTNaV\[ 98and suitable for her trim provided that such parcels 99can be loaded, carried and discharged without effecting 100aUR KR``RYk` `RNd\_aUV[R``) EaUR_ ZRN[` \S `R]N_NaV\[ 101of different parcels may be specified in Part I. 102

7. Advance Notices 103The Owners or the Master shall give notices of 104expected readiness to load/discharge as specified in 105Box 14 to the parties named therein and shall keep 106those parties advised of any alteration in expected load/ 107discharge readiness. 108

8. Port of Loading, Voyage, Port of Discharge 109(a) After completion of prior commitments as may 110be stated in Box 8, the Vessel shall proceed to the 111loading port(s)/berth(s) as stated in Box 15. 112(b) The Vessel shall carry the cargo with due 113despatch to the port(s)/berth(s) of discharge stated in 114Box 16. If the Charterers have the right to order the 115Vessel to discharge at one or more ports out of several 116ports named or within a specific range, the Charterers 117shall declare the actual port(s) of discharge to be 118inserted in the Bills of Lading prior to the arrival of the 119Vessel at the first port of loading. 120(c) Unless the loading/discharging port(s)/berth(s) are 121specifically mentioned herein, the Charterers warrant 122the safety of port(s)/ berth(s) nominated and that the 123Vessel will be loaded and discharged always afloat. 124(d) The Vessel shall be left in seaworthy trim for 125shifting between berths and ports. 126(e) Unless otherwise agreed, loading and/or discharging 127at two or more ports shall be effected in 128geographical rotation. 129



9. Notices of Readiness, Laytime, 130Demurrage/Despatch Money 131(a) Notice of Readiness 132(i) At each port of loading and discharging notice of 133

readiness shall be given to the Charterers or their 134Agents when the Vessel is in all respects ready 135to load/discharge at the loading/discharging berth. 136If the Vessel is a combination carrier, and has 137carried liquid cargo on its previous voyage, the 138Vessel shall possess a valid gas free certificate 139on tendering notice of readiness. 140

(ii) If a loading/discharging berth is not designated or 141if such designated berth is not available upon the 142KR``RYk` N__VcNY Na \_ \SS aUR ]\_a' [\aVPR \S _RNQV[R`` 143may be given upon arrival at the waiting place at 144or off the port. However, if at the time the loading/ 145discharging berth becomes available, the Vessel 146is prevented from proceeding to the berth due to 147her inefficiency, weather, tidal conditions, strikes 148of tugs or pilots or mandatory regulations applicable 149to the Vessel, time shall not count from that time 150until such hindrance(s) has (have) ceased. 151

(iii) Notice of readiness may be given on any day at 152any time. 153

(b) Laytime 154(i) The laytime shall commence when notice of 155

readiness has been given and after expiration of 156notice time, if any, provided for in Box 17. Should 157the Vessel arrive at the (first) loading port and be 158ready to load before the date stated in Box 9, the 159Charterers shall have the right to start loading. 160The Charterers shall also have the right to load/ 161discharge before the expiration of notice time. In 162either event, during such periods only time 163actually used shall count as laytime or as time on 164demurrage. 165

(ii) The notice time, if any, shall only apply at first or 166sole loading and discharging port, respectively. 167

(iii) If total laytime for loading and discharging has 168been agreed in Box 18 notice time, if any, at port 169of discharge shall be applied unless the Vessel is 170already on demurrage. 171

*) (iv) Separate laytime.- The cargo shall be loaded within 172the number of hours/days of 24 consecutive hours 173or at the average loading rate per day of 24 174consecutive hours as stated in Box 18a). The cargo 175shall be discharged within the number of hours/ 176days of 24 consecutive hours or at the average 177discharging rate per day of 24 consecutive hours 178as stated in Box 18b). 179

*) (v) Total laytime. hThe cargo shall be loaded and 180discharged within the number of hours/days of 18124 consecutive hours stated in Box 18c). 182

(vi) In the case of loading and/or discharging at more 183than one berth, laytime shall run continuously as 184if loading/discharging had been effected at one 185berth only but without prejudice to sub-clause (c). 186

(vii) Notwithstanding any other terms of this Charter 187Party, in any event laytime will start counting at 188the latest upon commencement of loading or 189discharging of the cargo from the Vessel. 190

*) Indicate alternative agreed in Box 18. 191(c) Suspension of Laytime 192(i) Unless the Vessel is on demurrage, laytime shall 193

not count (1) during periods excepted as per 194Boxes 19 and 20, unless used, in which case only 195time actually used shall count; (2) for the duration 196of bad weather or sea conditions which actually 197

]_RcR[a aUR KR``RYk` Yoading, discharging or the 198shifting between loading/discharging berths of the 199Vessel; (3) if so provided for in Clause 16. 200

(ii) Time shall not count as laytime or as time on 201demurrage whilst Vessel actually moving from 202waiting place whether at or off the port or from a 203lightening place off the port, until the Vessel is 204securely moored at the designated loading/ 205discharging berth. 206

(iii) Time lost due to inefficiency or any other cause 207attributable to the Vessel, her Master, her crew 208or the Owners shall not count as notice time or 209as laytime or as time on demurrage to the extent 210that loading or discharging or the matters covered 211by sub-clause (d)(i) are thereby affected. 212

(iv) If pursuant to Clause 10 (m) the Vessel has to 213vacate the loading/ discharging berth, notice time 214or laytime or time on demurrage shall not count 215from that time until she be in all respects ready 216to load/discharge and notification has been given 217to the Charterers accordingly. 218

(v) If due to the matters referred to in sub-clauses 219(c)(iii) or (c)(iv), the Vessel loses her turn, such 220time shall count again only as from 24 hours after 221[\aVSVPNaV\[ \S aUR KR``RYk` [Rd _RNQV[R`` UN` 222been given to the Charterers or when loading/ 223discharging resumes whichever may be the 224sooner. 225

(d) Termination of Laytime 226(i) Laytime/Demurrage shall stop counting on 227

completion of: (a) loading/discharging at the 228relevant port, (b) cargo documentation and/or 229draft survey for determination of cargo weight, 230(c) repairs to stevedore damage under Clause 23112(b), whichever may be the later. 232

(ii) If required, the Vessel shall leave the berth as soon 233as possible within her control on completion of 234loading/discharging, failing which the Charterers 235shall be entitled to proved damages. However, if 236the Vessel then has to wait for reasons (b) and/or 237(c) as per sub-clause (d)(i), there must be a place 238available at which she can safely wait, and any 239Rea_N Re]R[`R` ÙNYY OR S\_ aUR 9UN_aR_R_`k 240account. 241

(e) Demurrage/Despatch Money 242(i) Demurrage accrued under this Charter Party shall 243

be considered as constituting liquidated damages 244for exceeding the laytime provided for herein. 245However, if the Vessel has been on demurrage 246for 15 days or more and no cargo has been loaded, 247the Owners shall have the option of cancelling this 248Charter Party. No claim which the Owners may 249otherwise have against the Charterers shall be 250prejudiced by the Owners exercising their option 251of cancelling. 252

(i) Demurrage shall be due and payable by the 253Charterers day by day at the rate specified in 254Boxes 21 and 22 and in the manner provided for 255in Box 28. 256

(ii) Despatch money, if agreed upon in Box 23, shall 257be paid promptly by the Owners to the Charterers 258at half the demurrage rate or as otherwise agreed 259upon in Box 23 for laytime saved in loading and/ 260or discharging. 261

10. Loading and Discharging 262(a) The Vessel shall be loaded and discharged as 263and where ordered by the Charterers. 264



(b) If the Charterers have not nominated a suitable 265Y\NQV[T \_ QV`PUN_TV[T OR_aU \[ aUR KR``RYk` N__VcNY \SS 266the port, or if such berth should not be available, the 267Vessel is to wait at a suitable place at or off the port. 268The Charterers shall have the right to designate a safe 269waiting place, otherwise the Master shall choose a 270waiting place using due diligence to minimize extra 271shifting costs provided for in sub-clause (d). 272(c) The Charterers shall have the right to load and/ 273or discharge at two berths at each port or place subject 274to sub-clause (d). 275(d) Shifting. h Costs of shifting the Vessel between 276berths at port(s) of loading and port(s) of discharge, 277V[PYbQV[T Ob[XR_`' ÙNYY OR S\_ aUR 9UN_aR_R_`k NPP\b[a) 278Other costs on board the Vessel including wages and 279\SSVPR_`k N[Q P_Rdk` \cR_aVZR PUN_TR` a\ OR S\_ aUR 280Ed[R_`k NPP\b[a) 281(e) The Owners or the Master shall in due time prior 282to commencement of loading submit to the Charterers 283(or their nominees) at the loading port a loading plan 284which shall be based on a reasonable number of 285shiftings between hatches and also meet applicable 286rules and regulations, including IMO Code(s). The 287Charterers shall inform the Owners/Master of any 288special composition of cargo required in sufficient time 289to permit the Owners/Master to work out and submit 290such loading plan. 291(f) F_V\_ a\ Y\NQV[T' aUR KR``RYk` holds shall be 292adequately cleaned for loading the contracted cargo. 293(g) The Charterers shall load and spout-trim the 294cargo as per the loading plan, free of any risk, liability 295and expense to the Vessel. Any extra trimming and/or 296levelling required by the Master or Owners shall be 297]R_S\_ZRQ Na aUR Ed[R_`k Re]R[`R N[Q N[f aVZR Y\à 298thereby shall not count as laytime/demurrage. 299Discharging, including shovel cleaning, shall be 300effected by the Charterers free of any risk, liability and 301expense to the Vessel. 302(h) Warping. h The Vessel shall warp, as reasonably 303required by the Charterers, solely for the purpose of 304making any hatch or hatches available to the loading/ 305discharging appliances at that berth, and costs on 306board the Vessel including bunkers, wages and 307\SSVPR_`k N[Q P_Rdk` \cR_aVZR PUN_TR` ÙNYY OR S\_ aUR 308Ed[R_`k NPP\b[a) ?\dRcR_' aUR P\à` \S N[f [RPR``N_f 309\ba`VQR `R_cVPR` ÙNYY OR S\_ aUR 9UN_aR_R_`k NPP\b[a) 310Laytime or time on demurrage shall not be interrupted 311thereby. 312(i) The Vessel shall work day and night and during 313any time as may be excepted as per Box 19 and Box 31420, as required by the Charterers. 315(j) The Vessel shall, at her own risk and expense, 316open and close hatches prior to and after loading/ 317discharging and also during loading/discharging as 318may be required by the Charterers to protect the cargo, 319provided local shore regulations permit. If same, 320however, is not permitted by local shore labour 321regulations, shore labour is to be employed by the 322Charterers at their risk, liability and expense. The 323Vessel shall furnish and give free use of sufficient light 324for deck and holds, as on board. 325(k) The Charterers shall have the right to order the 326Vessel to leave without having loaded a full cargo, 327always provided that the Vessel be in seaworthy 328condition and that the Charterers pay deadfreight 329according to Clause 15(f). 330(l) Overtime for loading and discharging to be for the 331account of the party ordering the same. If overtime be 332

ordered by Port Authorities or any other Governmental 333Agencies, the Charterers to pay any extra expenses 334V[Pb__RQ) ESSVPR_`k N[Q P_Rdk` \cR_aVZR PUN_TR` NYdNf` 335to be paid by the Owners. 336(m) In the event of loading/discharging being 337impossible due to inefficiency or any other cause 338attributable to the Vessel, her Master, her crew or the 339Owners and such impossibility continuing for more than 340three consecutive hours, the Charterers shall have the 341right to order the Vessel to vacate the berth and shifting 342S_\Z N[Q ONPX a\ OR_aU ÙNYY OR Na aUR Ed[R_`k Re]R[`R 343and time. 344

11. Bulk Carrier Safety Clause 345(a) The Charterers shall instruct the terminal 346operators or their representatives to co-operate with 347the Master in completing the IMO SHIP/SHORE 348SAFETY CHECKLIST (IMO Resolution A.862(20) h 349Code of Practice for the Safe Loading and Unloading 350of Bulk Carriers (BLU Code) Appendix 3) and shall 351arrange all cargo operations strictly in accordance with 352the guidelines set out therein. 353(b) In addition to the above and notwithstanding any 354provision in this Charter Party in respect of loading/ 355discharging rates, the Charterers shall instruct the 356terminal operators to load/discharge the Vessel in 357accordance with the loading/discharging plan, which 358shall be approved by the Master with due regard to 359aUR KR``RYk` Q_NbTUt, trim, stability, stress or any other 360factor which may affect the safety of the Vessel. 361(c) At any time during cargo operations the Master 362may, if he deems it necessary for reasons of safety of 363the Vessel, instruct the terminal operators or their 364representatives to slow down or stop the loading or 365discharging. 366(d) Compliance with the provisions of this Clause 367shall not affect the counting of laytime. 368

12. Stevedore Damage 369(a) The Charterers shall be responsible for damage 370(beyond ordinary wear and tear) to any part of the 371Vessel caused by Stevedores at both ends. Such 372damage, as soon as apparent, shall be notified 373immediately by the Master to the Charterers or their 374port agents and to their Stevedores. The Owners/ 375Master shall R[QRNc\b_ a\ \OaNV[ aUR HaRcRQ\_R`k 376written acknowledgment of the damage caused. 377(b) Stevedore damage affecting seaworthiness or 378the proper working of the Vessel and/or her equipment 379shall be repaired without delay before the Vessel sails 380from the port where such damage was caused and 381shall be paid for by the Charterers. Other repairs shall 382be done before the completion of the voyage where 383practicable, or otherwise at a place mutually agreed 384between the parties. All costs of such repairs shall 385NY`\ OR S\_ aUR 9UN_aR_R_`k NPP\b[a N[Q N[f aVZR Y\à 386shall be for the account of and shall be paid to the 387Owners by the Charterers at the demurrage rate. 388

13. Dues, Taxes and Charges, Extra Insurance 389(a) On the Vessel. h The Owners shall pay all dues, 390duties, taxes and other charges customarily levied on 391the Vessel, howsoever the amount thereof may be 392assessed. 393(b) On the cargo. h The Charterers shall pay all dues, 394duties, taxes and charges levied on the cargo at the 395port of loading/discharging, howsoever the amount 396thereof may be assessed. 397



(c) On the freight. h Taxes levied on the freight shall 398be paid by the Owners or the Charterers as agreed in 399Box 24. 400(d) Extra Insurance. h Any extra insurance on cargo 401NPabNYYf ]NVQ Of aUR 9UN_aR_R_` \dV[T a\ KR``RYk` NTR' 402PYN``' SYNT \_ \d[R_ÙV] ÙNYY OR S\_ aUR Ed[R_`k 403account and may be deducted from the freight. The 404Charterers shall furnish evidence of payment 405supporting any such deduction. Unless a maximum 406amount has been agreed in Part I, such extra insurance 407shall not exceed the lowest extra premium which would 408be charged for the Vessel and voyage in the London 409insurance market. 410

14. Agents 411At the port(s) of loading the Vessel shall be consigned 412to the Agents as stated in Box 25 and at the port(s) of 413discharge to the Agents as stipulated in Box 26, the 414Owners always paying the customary fees. 415

15. Freight 416The freight at the rate stated in Box 27 shall be 417calculated on intaken quantity. 418(a) Prepaid. h If according to Boxes 27 or 28 freight 419is to be paid on shipment, it shall be deemed earned 420and non-returnable Vessel and/or cargo lost or not lost. 4218VYY` \S BNQV[T Ù\dV[T i=_RVTUa ]_R]NVQj \_ aUR YVXR 422shall not be released until the freight has been duly 423paid. 424(b) After shipment. h If according to Box 28 freight 425shall be payable within a number of days after 426shipment, the freight shall be deemed earned as per 427sub-clause (a). In such case Bills of Lading shall not 428OR R[Q\_`RQ i=_RVTU%S& a ]_R]NVQj \_ aUR YVXR' b[YR`` 429the freight has been paid. 430(c) Partly on Delivery. h If according to Boxes 27 or 43128 a percentage of the freight shall be payable as per 432sub-clauses (a) or (b) the balance shall be paid as per 433sub-clause (c). However, in such case the total freight 434shall be deemed earned as per sub-clause (a) and the 435Charterers shall not have the option referred to in sub- 436Clause (d)(i). 437(d) On Delivery. h If according to Boxes 27 or 28 438

freight is payable at destination or on right and true 439delivery of the cargo, it shall not be deemed earned 440until the cargo is thus delivered. 441

(i) On Delivered Weight. h When the freight is payable 442on delivery of cargo the Charterers shall have the 443option of paying freight on delivered weight, 444provided such option be declared in writing before 445breaking bulk and the weight be ascertained by 446official weighing machine, otherwise by joint 447draught survey. The Charterers shall pay all costs 448incurred in connection with weighing or draught 449survey. The Owners shall be at liberty to appoint 450check clerks at their own expense. 451

(e) Deductions. h The freight shall be paid in cash 452without discount in the manner described in Box 28. 453The Charterers shall only be entitled to deduct from 454the freight undisputed despatch money and extra 455insurance, provided properly documented, as per 456Clause 13(d). 457(f) Deadfreight. h If the Charterers fail to supply a 458cargo as specified in Box 13, deadfreight shall be 459payable but the Charterers shall not be bound to supply 460cargo in excess of any quantity stated by the Owners 461N` aUR KR``RYk` PN]NPVaf ZNQR NcNVYNOYR a\ aUR 462Charterers. The laytime shall be calculated on that 463

quantity. The Owners/Master shall be entitled to Clause 464Bills of Lading for any deadfreight due. If the Shippers/ 465Suppliers state in writing that no more cargo will be 466shipped, the Owners shall not need to have any such 467statement confirmed by the Charterers. 468

16. Strike and Other Hindrances 469(a) If there is a strike or lock-out or any other cause 470referred to in Clause 24 %UR_RV[NSaR_ aUR iUV[Q_N[PRj& 471affecting or preventing the actual loading of the cargo, 472or any part of it, when the Vessel is ready to proceed 473from her last port or at any time during the voyage to 474the port or ports of loading or after her arrival there, 475the Master or the Owners may ask the Charterers to 476declare, that they agree to reckon the laydays as if 477there were no hindrance. Unless the Charterers have 478given such declaration in writing (by telegram, if 479necessary) within 24 hours, the Owners shall have the 480option of cancelling this Charter Party. If part cargo 481has already been loaded, the Owners must proceed 482with same, (freight payable on loaded quantity only) 483having liberty to complete with other cargo on the way 484for their own account. 485(b) If there is a hindrance affecting or preventing the 486actual discharging of the cargo on or after the KR``RYk` 487arrival at or off port of discharge and same has not 488been settled within 48 hours, the Charterers shall have 489the option of keeping the Vessel waiting until such 490hindrance is at an end against paying half demurrage 491after expiration of the time provided for discharging 492until the hindrance has come to an end and thereafter 493full demurrage shall be payable until the completion of 494discharging, or of ordering the Vessel to a safe port 495where she can safely discharge without risk of being 496detained by a hindrance. Such orders to be given within 49748 hours after the Master or the Owners have given 498notice to the Charterers of the hindrance affecting the 499discharge. On delivery of the cargo at such port, all 500conditions of this Charter Party and of the Bill of Lading 501shall apply and the Vessel shall receive the same 502freight as if she had discharged at the original port of 503destination, except that if the distance to the substituted 504port exceeds 100 nautical miles, the freight on the 505cargo delivered at the substituted port to be increased 506in proportion. 507(c) Except for the obligations described above, 508neither the Charterers nor the Owners shall be 509responsible for the consequences of hindrances 510preventing or affecting the actual loading or discharging 511of the cargo. 512

17. General Ice Clause 513The Vessel shall not be obliged to force ice but, subject 514a\ aUR Ed[R_`k N]]_\cNY N[Q UNcV[T QbR _RTN_Q a\ Va` 515size, construction and class, may follow ice-breakers 516when reasonably required. 517(a) Port of Loading 518(i) If at any time after setting out on the approach 519

c\fNTR aUR KR``RYk` ]N``NTR V` VZ]RQRQ Of VPR' 520or if on arrival the loading port is inaccessible by 521reason of ice, the Master or Owners shall notify 522the Charterers thereof and request them to 523nominate a safe and accessible alternative port. 524If the Charterers fail within 48 running hours, 525Sundays and holidays included, to make such 526nomination or agree to reckon laytime as if the 527port named in the Charter Party were accessible 528or declare that they cancel the Charter Party, the 529



Owners shall have the option of cancelling the 530Charter Party. In the event of cancellation by 531either party, the Charterers shall compensate the 532Owners for all proven loss of earnings under this 533Charter Party. 534

(ii) f at any loading port the Master considers that 535there is a danger of the Vessel being frozen in, 536and provided that the Master or Owners 537immediately notify the Charterers thereof, the 538Vessel may leave with cargo loaded on board 539and proceed to the nearest safe and ice free 540]YNPR N[Q aUR_R NdNVa aUR 9UN_aR_R_`k [\ZV[NaV\[ 541of a safe and accessible alternative port within 54224 running hours, Sundays and holidays 543RePYbQRQ' \S aUR CNàR_k` \_ Ed[R_`k notification. 544If the Charterers fail to nominate such alternative 545port, the Vessel may proceed to any port(s), 546whether or not on the customary route for the 547chartered voyage, to complete with cargo for the 548Ed[R_`k NPP\b[a) 549

(b) Port of Discharge 550(i) If the voyage to the discharging port is impeded 551

by ice, or if on arrival the discharging port is 552inaccessible by reason of ice, the Master or 553Owners shall notify the Charterers thereof. In such 554case, the Charterers shall have the option of 555keeping the Vessel waiting until the port is 556accessible against paying compensation in an 557amount equivalent to the rate of demurrage or of 558ordering the Vessel to a safe and accessible 559alternative port. 560If the Charterers fail to make such declaration 561within 48 running hours, Sundays and holidays 562included, of the Master or Owners having given 563notice to the Charterers, the Master may proceed 564without further notice to the nearest safe and 565accessible port and there discharge the cargo. 566

(ii) If at any discharging port the Master considers 567that there is a danger of the Vessel being frozen 568in, and provided that the Master or Owners 569immediately notify the Charterers thereof, the 570Vessel may leave with cargo remaining on board 571and proceed to the nearest safe and ice free place 572N[Q aUR_R NdNVa aUR 9UN_aR_R_`k [\ZV[NaV\[ \S N 573safe and accessible alternative port within 24 574running hours, Sundays and holidays excluded, 575\S aUR CNàR_k` \_ Ed[R_`k [\aVSVPNaV\[) @S aUR 576Charterers fail to nominate such alternative port, 577the Vessel may proceed to the nearest safe and 578accessible port and there discharge the remaining 579cargo. 580

(iii) On delivery of the cargo other than at the port(s) 581named in the Charter Party, all conditions of the 582Bill of Lading shall apply and the Vessel shall 583receive the same freight as if discharge had been 584at the original port(s) of destination, except that if 585the distance of the substituted port(s) exceeds 586100 nautical miles, the freight on the cargo 587delivered at the substituted port(s) shall be 588increased proportionately. 589

18. IK[ ES\U\ $cHYb`K[ ,44.d% 590(a) For the purpose of this Clause, the words: 591(i) iEd[R_`j ÙNYY V[PYbQR aUR ÙV]\d[R_`' ON_RO\Na 592

charterers, disponent owners, managers or other 593operators who are charged with the management 594of the Vessel, and the Master; and 595

(ii) iLN_ GV`X`j ÙNYY V[PYbQR N[f dN_ %dURaUR_ NPabNY 596

or threatened), act of war, civil war, hostilities, 597revolution, rebellion, civil commotion, warlike 598operations, the laying of mines (whether actual 599or reported), acts of piracy, acts of terrorists, acts 600of hostility or malicious damage, blockades 601(whether imposed against all vessels or imposed 602selectively against vessels of certain flags or 603ownership, or against certain cargoes or crews 604or otherwise howsoever), by any person, body, 605terrorist or political group, or the Government of 606any state whatsoever, which, in the reasonable 607judgement of the Master and/or the Owners, may 608be dangerous or are likely to be or to become 609dangerous to the Vessel, her cargo, crew or other 610persons on board the Vessel. 611

(b) If at any time before the Vessel commences 612loading, it appears that, in the reasonable judgement 613of the Master and/or the Owners, performance of the 614Charter Party, or any part of it, may expose, or is likely 615to expose, the Vessel, her cargo, crew or other persons 616on board the Vessel to War Risks, the Owners may 617give notice to the Charterers cancelling this Charter 618Party, or may refuse to perform such part of it as may 619expose, or may be likely to expose, the Vessel, her 620cargo, crew or other persons on board the Vessel to 621War Risks; provided always that if this Charter Party 622provides that loading or discharging is to take place 623within a range of ports, and at the port or ports 624nominated by the Charterers the Vessel, her cargo, 625crew, or other persons on board the Vessel may be 626exposed, or may be likely to be exposed, to War Risks, 627the Owners shall first require the Charterers to 628nominate any other safe port which lies within the range 629for loading or discharging, and may only cancel this 630Charter Party if the Charterers shall not have 631nominated such safe port or ports within 48 hours of 632receipt of notice of such requirement. 633(c) The Owners shall not be required to continue to 634load cargo for any voyage, or to sign Bills of Lading for 635any port or place, or to proceed or continue on any 636voyage, or on any part thereof, or to proceed through 637any canal or waterway, or to proceed to or remain at 638any port or place whatsoever, where it appears, either 639after the loading of the cargo commences, or at any 640stage of the voyage thereafter before the discharge of 641the cargo is completed, that, in the reasonable 642judgement of the Master and/or the Owners, the 643Vessel, her cargo (or any part thereof), crew or other 644persons on board the Vessel (or any one or more of 645them) may be, or are likely to be, exposed to War Risks. 646If it should so appear, the Owners may by notice 647request the Charterers to nominate a safe port for the 648discharge of the cargo or any part thereof, and if within 64948 hours of the receipt of such notice, the Charterers 650shall not have nominated such a port, the Owners may 651discharge the cargo at any safe port of their choice 652(including the port of loading) in complete fulfilment of 653the Charter Party. The Owners shall be entitled to 654recover from the Charterers the extra expenses of such 655discharge and, if the discharge takes place at any port 656other than the loading port, to receive the full freight 657as though the cargo had been carried to the discharging 658port and if the extra distance exceeds 100 miles, to 659additional freight which shall be the same percentage 660of the freight contracted for as the percentage which 661the extra distance represents to the distance of the 662normal and customary route, the Owners having a lien 663on the cargo for such expenses and freight. 664



(d) If at any stage of the voyage after the loading of 665the cargo commences, it appears that, in the 666reasonable judgement of the Master and/or the 667Owners, the Vessel, her cargo, crew or other persons 668on board the Vessel may be, or are likely to be, exposed 669to War Risks on any part of the route (including any 670canal or waterway) which is normally and customarily 671used in a voyage of the nature contracted for, and there 672is another longer route to the discharging port, the 673Owners shall give notice to the Charterers that this 674route will be taken. In this event the Owners shall be 675entitled, if the total extra distance exceeds 100 miles, 676to additional freight which shall be the same percentage 677of the freight contracted for as the percentage which 678the extra distance represents to the distance of the 679normal and customary route. 680(e) The Vessel shall have liberty:- 681(i) to comply with all orders, directions, 6ecommend- 682

dations or advice as to departure, arrival, routes, 683sailing in convoy, ports of call, stoppages, 684destinations, discharge of cargo, delivery or in any 685way whatsoever which are given by the Govern- 686ment of the Nation under whose flag the Vessel 687sails, or other Government to whose laws the 688Owners are subject, or any other Government 689which so requires, or any body or group acting 690with the power to compel compliance with their 691orders or directions; 692

(ii) to comply with the orders, directions or recom- 693mendations of any war risks underwriters who 694have the authority to give the same under the 695terms of the war risks insurance; 696

(iii) to comply with the terms of any resolution of the 697Security Council of the United Nations, any 698directives of the European Community, the 699effective orders of any other Supranational body 700which has the right to issue and give the same, 701and with national laws aimed at enforcing the 702same to which the Owners are subject, and to 703obey the orders and directions of those who are 704charged with their enforcement; 705

(iv) to discharge at any other port any cargo or part 706thereof which may render the Vessel liable to 707confiscation as a contraband carrier; 708

(v) to call at any other port to change the crew or any 709part thereof or other persons on board the Vessel 710when there is reason to believe that they may be 711subject to internment, imprisonment or other 712sanctions; 713

(vi) where cargo has not been loaded or has been 714discharged by the Owners under any provisions 715\S aUV` 9YNb`R' a\ Y\NQ \aUR_ PN_T\ S\_ aUR Ed[R_`k 716own benefit and carry it to any other port or ports 717whatsoever, whether backwards or forwards or 718in a contrary direction to the ordinary or customary 719route. 720

(f) If in compliance with any of the provisions of sub- 721Clauses (b) to l of this Clause anything is done or 722not done, such shall not be deemed to be a deviation, 723but shall be considered as due fulfilment of the Charter 724Party. 725

19. Lien 726(a) The Owners shall have a lien on the cargo for 727freight, deadfreight, demurrage and general average 728contribution due to them under this Charter Party. 729(b) The Charterers shall remain responsible for 730deadfreight and demurrage, incurred at port of loading 731

and for freight and demurrage incurred at port of 732discharge. 733

20. Liberty 734The Vessel shall have liberty to sail with or without 735pilots, to tow or go to the assistance of vessels in 736distress, to call at any port or place for oil fuel supplies, 737and to deviate for the purpose of saving life or property, 738or for any other reasonable purpose whatsoever. 739

21. Both-to-Blame Collision Clause 740If the Vessel comes into collision with another vessel 741as a result of the negligence of the other vessel and 742any act, neglect or default of the Master, mariner, pilot 743or the servants of the Owners in the navigation or in 744the management of the Vessel, the owners of the cargo 745carried hereunder will indemnify Owners against all 746loss or liability to the other or non-carrying vessel or 747her owners in so far as such loss or liability represents 748loss of, or damage to, or any claim whatsoever of the 749owners of said cargo, paid or payable by the other or 750non-carrying vessel or her owners to the owners of 751said cargo and set-off, recouped or recovered by the 752other or non-carrying vessel or her owners as part of 753their claim against the carrying vessel or owners. The 754foregoing provisions shall also apply where the owners, 755operators or those in charge of any vessel or vessels 756or objects other than, or in addition to, the colliding 757vessels or objects are at fault in respect of a collision 758or contact. 759

22. General Average and New Jason Clause 760General Average shall be adjusted and settled at the 761place indicated in Box 29 according to the York/Antwerp 762Rules, 1994, or any modification thereof, but if, 763notwithstanding the provisions specified in Box 29, the 764adjustment is made in accordance with the law and 765practice of the United States of America, the following 7669YNb`R ÙNYY N]]Yf5 i@[ aUR RcR[a \S NPPVQR[a' QN[TR_' 767damage or disaster before or after the commencement 768of the voyage, resulting from any cause whatsoever, 769whether due to negligence or not, for which, or for the 770consequence of which, Owners are not responsible, 771by statute, contract or otherwise, the goods, shippers, 772consignees or owners of the goods shall contribute 773with Owners in general average to the payment of any 774sacrifices, losses or expenses of a general average 775nature that may be made or incurred and shall pay 776salvage and special charges incurred in respect of the 777goods. If a salving Vessel is owned or operated by 778Owners, salvage shall be paid for as fully as if the said 779salving Vessel or vessels belonged to strangers. Such 780deposit as Owners, or their agents, may deem sufficient 781to cover the estimated contribution of the goods and 782any salvage and special charges thereon shall, if 783required, be made by the goods, shippers, consignees 784\_ \d[R_` \S aUR T\\Q` a\ Ed[R_` ORS\_R QRYVcR_fj) 785

23. Responsibilities 786(a) The International Convention for the Unification 787of Certain Rules of Law relating to Bills of Lading signed 788Na 8_b``RY` \[ -0 7bTbà ,4-/ %iaUR ?NTbR GbYR`j& N` 789amended by the Protocol signed at Brussels on 23 790=RO_bN_f ,413 %iaUR ?NTbR-KVÒf GbYR`j& N[Q N` 791enacted in the country of shipment shall apply to this 792Charter Party. When the Hague-Visby Rules are not 793enacted in the country of shipment, the corresponding 794



legislation of the country of destination shall apply, 795irrespective of whether such legislation may only 796regulate outbound shipments. 797(b) When there is no enactment of the Hague-Visby 798Rules in either the country of shipment or in the country 799of destination, the Hague-Visby Rules shall apply to 800this Charter Party save where the Hague Rules as 801enacted in the country of shipment or if no such 802enactment is in place, the Hague Rules as enacted in 803the country of destination, compulsorily applicable to 804shipments, in which case the provisions of such Rules 805shall apply. 806(c) The Protocol signed at Brussels on 21 December 807,424 %iaUR H;G F_\a\P\Y ,424j& ÙNYY N]]Yf dUR_R aUR 808Hague-Visby Rules apply, whether mandatorily or by 809this Charter Party. 810(d) The Owners shall in no case be responsible for 811loss of or damage to cargo arising prior to loading, 812after discharging, or while the cargo is in the charge 813of another carrier, or with respect to deck cargo and 814live animals. 815

24. Force Majeure 816Save to the extent otherwise in this Charter Party 817expressly provided, neither party shall be responsible 818for any loss or damage or delay or failure in 819performance hereunder resulting from Act of God, war, 820terrorism, civil commotion, quarantine, strikes, 821lockouts, arrest or restraint of princes, rulers and 822peoples or any other event whatsoever which cannot 823be avoided or guarded against. 824

25. Bills of Lading 825Bills of Lading shall be presented and signed by the 826CNàR_ N` ]R_ aUR i9E7B-EG<KEM8@BBj 8VYY \S BNQV[T 827S\_Z' NYdNf` V[ NPP\_QN[PR dVaU CNaRk` GRPRV]a` N[Q 828without prejudice to this Charter Party, or by the Agents 829provided written authority has been given by Owners 830to the Agents, a copy of which is to be furnished to the 831Charterers. The Charterers shall indemnify the Owners 832against all consequences or liabilities that may arise 833from the signing of bills of lading as presented to the 834extent that the terms or contents of such bills of lading 835impose or result in the imposition of more onerous 836liabilities upon the Owners than those assumed by the 837Owners under this Charter Party. 838

26. Dispute Resolution 839*) (a) This Charter Party shall be governed by and 840

construed in accordance with English law and any 841dispute arising out of or in connection with this Charter 842Party shall be referred to arbitration in London in 843accordance with the Arbitration Act 1996 or any statutory 844modification or re-enactment thereof save to the extent 845necessary to give effect to the provisions of this Clause. 846The arbitration shall be conducted in accordance with 847the London Maritime Arbitrators Association (LMAA) 848Terms current at the time when the arbitration 849proceedings are commenced. 850The reference shall be to three arbitrators. A party 851wishing to refer a dispute to arbitration shall appoint 852its arbitrator and send notice of such appointment in 853writing to the other party requiring the other party to 854appoint its own arbitrator within 14 calendar days of 855that notice and stating that it will appoint its arbitrator 856as sole arbitrator unless the other party appoints its 857own arbitrator and gives notice that it has done so 858within the 14 days specified. If the other party does 859

not appoint its own arbitrator and give notice that it 860has done so within the 14 days specified, the party 861referring a dispute to arbitration may, without the 862requirement of any further prior notice to the other party, 863appoint its arbitrator as sole arbitrator and shall advise 864the other party accordingly. The award of a sole 865arbitrator shall be binding on both parties as if he had 866been appointed by agreement. 867Nothing herein shall prevent the parties agreeing in 868writing to vary these provisions to provide for the 869appointment of a sole arbitrator. 870In cases where neither the claim nor any counterclaim 871exceeds the sum of US$50,000 (or such other sum as 872the parties may agree) the arbitration shall be 873conducted in accordance with the LMAA Small Claims 874Procedure current at the time when the arbitration 875proceedings are commenced. 876

*) (b) This Charter Party shall be governed by and 877construed in accordance with Title 9 of the United 878States Code and the Maritime Law of the United States 879and any dispute arising out of or in connection with 880this Contract shall be referred to three persons at New 881York, one to be appointed by each of the parties hereto, 882and the third by the two so chosen; their decision or 883that of any two of them shall be final, and for the 884purposes of enforcing any award, judgement may be 885entered on an award by any court of competent 886jurisdiction. The proceedings shall be conducted in 887accordance with the rules of the Society of Maritime 888Arbitrators, Inc. 889In cases where neither the claim nor any counterclaim 890exceeds the sum of US$50,000 (or such other sum as 891the parties may agree) the arbitration shall be 892conducted in accordance with the Shortened Arbitration 893Procedure of the Society of Maritime Arbitrators, Inc. 894current at the time when the arbitration proceedings 895are commenced. 896

*) (c) This Charter Party shall be governed by and 897construed in accordance with the laws of the place 898mutually agreed by the parties and any dispute arising 899out of or in connection with this Charter Party shall be 900referred to arbitration at a mutually agreed place, subject 901to the procedures applicable there. 902(d) Notwithstanding (a), (b) or (c) above, the parties 903may agree at any time to refer to mediation any 904difference and/or dispute arising out of or in connection 905with this Charter Party. 906In the case of a dispute in respect of which arbitration 907has been commenced under (a), (b) or (c) above, the 908following shall apply:- 909(i) Either party may at any time and from time to time 910

elect to refer the dispute or part of the dispute to 911mediation by service on the other party of a written 912[\aVPR %aUR iCRQVNaV\[ D\aVPRj& PNYYV[T \[ aUR \aUR_ 913party to agree to mediation. 914

(ii) The other party shall thereupon within 14 calendar 915days of receipt of the Mediation Notice confirm that 916they agree to mediation, in which case the parties 917shall thereafter agree a mediator within a further 91814 calendar days, failing which on the application 919of either party a mediator will be appointed promptly 920Of aUR 7_OVa_NaV\[ I_VOb[NY %iaUR I_VOb[NYj& \_ `bPU 921person as the Tribunal may designate for that 922purpose. The mediation shall be conducted in such 923place and in accordance with such procedure and 924on such terms as the parties may agree or, in the 925event of disagreement, as may be set by the 926mediator. 927

(iii) If the other party does not agree to mediate, that 928



fact may be brought to the attention of the Tribunal 929and may be taken into account by the Tribunal 930when allocating the costs of the arbitration as 931between the parties. 932

(iv) The mediation shall not affect the right of either 933party to seek such relief or take such steps as it 934considers necessary to protect its interest. 935

(v) Either party may advise the Tribunal that they have 936agreed to mediation. The arbitration procedure 937shall continue during the conduct of the mediation 938but the Tribunal may take the mediation timetable 939into account when setting the timetable for steps 940in the arbitration. 941

(vi) Unless otherwise agreed or specified in the 942mediation terms, each party shall bear its own 943costs incurred in the mediation and the parties 944ÙNYY ÙN_R R^bNYYf aUR ZRQVNa\_k` P\à` N[Q 945expenses. 946

(vii) The mediation process shall be without prejudice 947and confidential and no information or documents 948disclosed during it shall be revealed to the Tribunal 949except to the extent that they are disclosable 950under the law and procedure governing the 951arbitration. 952

(Note: The parties should be aware that the mediation 953process may not necessarily interrupt time limits.) 954(e) If Box 30 in PART I is not appropriately filled in, 955

sub-clause (a) of this Clause shall apply. Sub-clause 956(d) shall apply in all cases. 957

*) Sub-clauses (a), (b) and (c) are alternatives; indicate 958alternative agreed in Box 30: 959

27. Brokerage 960A brokerage commission at the rate stated in Box 31 961on the freight, dead-freight and demurrage earned is 962due to the party mentioned in Box 31. 963In case of non-execution 1/3 of the brokerage on the 964estimated amount of freight to be paid by the party 965responsible for such non-execution to the Brokers as 966V[QRZ[Vaf S\_ aUR YNaaR_k` Re]R[`R` N[Q d\_X) @[ PN`R 967of more voyages the amount of indemnity to be 968agreed. 969

28. Notices 970(a) All notices given by either party or their agents 971to the other party or their agents in accordance with 972the provisions of this Charter Party shall be in writing. 973(b) =\_ aUR ]b_]\`R` \S aUV` 9UN_aR_ FN_af' iV[ d_VaV[Tj 974shall mean any method of legible communication. A 975notice may be given by any effective means including, 976but not limited to, cable, telex, fax, e-mail, registered 977or recorded mail, or by personal service. 978


From: Gordon Grill

Sent: Saturday, 1 October, 2016 18:23 PM

To: 'Peter Girvin’

Cc: Nuriputri Bte Mohammad

Subject: RE: M.V. TARDY TESSA – Time Charter

Dear Girvin,

We attach the bank slip for the hire payment for the month of October for the TARDY TESSA.

Best,

GG

----------------------------------------------------------------------------------------------------------------------------

From: Peter Girvin

Sent: Sunday, 16 October, 2016 19:30 PM

To: 'Gordon Grill'

Cc: [email protected];


Dear Gordon,

We have received complaints from the master and crew of the vessel that she has been kept adrift

OPL Singapore w/o instructions. Please advise master of disport urgently.

Thanks,

Girvin

----------------------------------------------------------------------------------------------------------------------------

From: Gordon Grill





Dear Girvin,

Thanks for yours. We have some issues with our chrts but that is being dealt with now. Apologies for

the inconvenience.

Best,

GG

----------------------------------------------------------------------------------------------------------------------------

From: Peter Girvin


To: 'Gordon Grill'




Dear Gordon,

Thanks. As long as hire is paid promptly, we will leave matters to you. Just don’t leave our vsl and

crew waiting around in the high seas without knowing how and when they will reach shore. The ship

will eventually need to call at port.

Thanks,

Girvin

----------------------------------------------------------------------------------------------------------------------------

From: Peter Girvin

Sent: Wednesday, 19 October, 2016 20:21 PM

To: 'Gordon Grill'



Dear Gordon,

Have you had any progress with your chrts? I just received another message from the master. The

crew is sick and tired of waiting around without knowing when this Odyssey will come to an end.

Look forward to hearing from you urgently.

Thanks,

Girvin

----------------------------------------------------------------------------------------------------------------------------

From: Gordon Grill

Sent: Thursday, 20 October, 2016 15:23 PM




Dear Girvin,

Thanks for yours. Unfortunately, the chrts have not nominated a legitimate discharge port. They have

also refused to pay freight.

We have just sent them a notice of lien over the cargoes onboard the vessel for freight and detention.

We trust that we have the shipowners assistance in exercising the lien over the cargo.

Best,

GG

----------------------------------------------------------------------------------------------------------------------------


From: Peter Girvin


To: 'Gordon Grill'



Dear Gordon,

You have the owners assistance insofar as such assistance is within the boundaries of the CP. We

will help chrts exercise the lien over the cargo as long as payment of hire is made promtpy.

Thanks,

Girvin

----------------------------------------------------------------------------------------------------------------------------

From: Gordon Grill





Dear Girvin,

Thank you. That is good to hear.

Rest assured that payment of hire for the month of Nov will be made promptly.

Best,

GG

----------------------------------------------------------------------------------------------------------------------------

From: Gordon Grill

Sent: Tuesday, 1 November, 2016 10:21 AM




Dear Girvin,

We attach the bank slip for the hire payment for the month of November for the TARDY TESSA.

Best,

GG

----------------------------------------------------------------------------------------------------------------------------

From: Peter Girvin

Sent: Sunday, 30 November, 2016 14:12 PM


To: 'Gordon Grill'



Dear Gordon,

Please see below a report received from the master.

QUOTE

To whom it may conecern,

The situation on board the vessel is very bad and worsening with each day. Crew morale is very low.

The vessel has been kept adrift in open seas for more than 20 days now, at the mercy of the strong

winds and swell owing to the monsoon season. The vessel and her cargo on board are at high risk of

being damaged or lost.

The weather conditions today, 30 October 2016, are very bad and the ship has been rolling heavily at

an angle of 13 degress either way due to prevailing wind and the vessel is facing winds of 44 knots or

Force 9 on the beauford scale.

We are also badly in need of supplies. We have long run out of fresh food provisions on board such

as vegetables and fruits. We have also run out of medicine. My first officer in particular, suffers from

diabetes and requires his insulin supplies which are running dangerously low. There is a lack of fresh

water on board and serious hygiene issues are prevalent.

As for the cargo, I have noticed signs of overheating. The crew are extremely concerned that the

cargo may self-ignite and explode.

Most of my crew are now threatening to report owners to ITF. I am also facing en masse

resignations. I am not sure how long I can maintain control over my crew. I ask that urgent measure

be undertaken immediately before it is too late.

UNQUOTE

Gordon, we cannot allow this to continue further. Please act immediately.

----------------------------------------------------------------------------------------------------------------------------

From: Gordon Grill

Sent: Sunday, 1 December, 2016 09:03 AM




Dear Girvin,


We sympathise with all that is happening. We have already instructed lawyers to seek relief from an

arbitration Tribunal. This will come to an end soon.

In the meantime, I attach the bank slip for the hire payment for the month of December for the TARDY

TESSA.

Best,

GG


M/V “TARDY TESSA”

SINGAPORE 55667

IMO No. 9593842

PORT OF: NEWCASTLE, AUSTRALIA

DATE: OCTOBER 1st, 2016

NOTICE OF READINESS

To Messrs,

Idoncare Berjaya Utama Pty. Ltd. c/o Blackcoal Shipping Services

Dear Sirs,

This is to advise you that the M/V “TARDY TESSA” under my command, with Singapore

Flag, Official No. 556667 arrived at KOORAGANG PRECINCT on OCTOBER 1st

, 2016 at 02:00 LT

and is ready in all respects to load her cargo in accordance with terms and conditions and addendum

of the relevant Charter Party.

To be accepted as per the provisions of the Charter Party.

Please consider present letter as Official Notice of Readiness and notify all parties concerned.

Yours Faithfully,

Captain Tan Xiao Ming


Carbon Investigators Pty. Ltd.

Cargo surveyors

Certificate No. 033241//Newcastle

Date: 04.10.2016

CERTIFICATE OF SAMPLING AND ANALYSIS

NAME OF VESSEL MV TARDY TESSA

PORT OF LOADING Newcastle, New South Wales, Australia

DESCRIPTION OF CARGO Australian Steam Coal in bulk

QUANTITY 84,000.052 MT

ATTENDING DATE 4 October 2016

Samples were taken during loading of vessel in accordance with the appropriate ASTM Standard

Methods. Sample were prepared and analysed in accordance with ASTM Standard Methods and

showed the following actual analysis results:

SPECIFICIATIONS ANALYSIS BASIS ACTUAL ANALYSIS RESULTS

TOTAL MOISTURE (ARB) 30.1 PCT

INHERENT MOISTURE (ADB) 15.9 PCT

VOLATILE MATTER (ADB) 40.3 PCT

FIXED CARBON (ADB) BY DIFFERENCE

ASH (ADB) 0.75 PCT

GROSS CALORIFIC VALUE (ARB) 4510 KCAL/KG

HGI 47

SIZE 0 to 50 MM 92.2 PCT

Stephen Styles

Principal Surveyor

4 October 2016


Date: BILL OF LADING Page 1 of ______

Name: Bill of Lading Number: ________________________

Address:

Name:Address:

SPECIAL INSTRUCTIONS:

SHIPPER

Newcastle 2300New South Wales, Australia

CONSIGNEE

NOTIFY PARTY

TO ORDER

Dharmapuri, Forest Colony, Tajganj, AgraUttar Pradesh 282001, India

NAME OF VESSEL

M.V. TARDY TESSA

PORT OF LOADING

PORT OF DISCHARGE

Newcastle, New South WalesAustralia

Any SPSB in China (Out of Dalian, Jinzhou, Yingkou,Yantai, Qingdao, Shanghai, Tianjin, Ningbo)

SHIPPER'S DESCRIPTION OF GOODS GROSS WEIGHT

Australian Steam Coal in Bulk

CLEAN ON BOARD

84,000.052 MT

Number of Original Bill(s) of Lading: THREE (3)

SHIPPED at the Port of Loading in apparent good order and condition on board the Vessel for carriage to the Port of Discharge or

so near there to as she may safely get.

Weight, measure, quality, quantity, condition, contents and value unknown.

IN WITNESS where of the Master or Agent of the said Vessel signed the number of Bill(s) of Lading indicated above all of his

tenor and date, any one of which being accomplished the others shall be void.

FOR CONDITIONS OF CARRIAGE SEE OVERLEAF.

PLACE AND DATE OF ISSUE

Queen's WharfPort of Newcastle, New South WalesAustralia

4 OCTOBER 2016

SIGNATURE

MASTER OF M.V. TARDY TESSA

FIRST ORIGINAL

4 October 2016 2

Idoncare Berjaya Utama Pty. Ltd.30 Pacific Street #02-04

Koyala Global Resources Ltd

Freight payable as per charter party

IMOBL11223344X


PAGE 2 of 2

Conditions of Carriage

(1) All terms and conditions, liberties and exceptions of the Charter Party, dated as overleaf, including theLaw and Arbitration Clause/Dispute Resolution Clause, are herewith incorporated.

(2) General Paramount Clause

The International Convention for the Unification of Certain Rules of Law relating to Bills of Lading signedat Brussels on 25 August 1924 (the “Hague Rules”) as amended by the Protocol signed at Brussels on23 February 1968 (the “Hague-Visby Rules”) and as enacted in the country of shipment shall apply tothis Contract. When the Hague-Visby Rules are not enacted in the country of shipment, thecorresponding legislation of the country of destination shall apply, irrespective of whether suchlegislation may only regulate outbound shipments.

When there is no enactment of the Hague-Visby Rules in either the country of shipment or in the countryof destination, the Hague-Visby Rules shall apply to this Contract save where the Hague Rules asenacted in the country of shipment or if no such enactment is in place, the Hague Rules as enacted inthe country of destination apply compulsorily to this Contract.

The Protocol signed at Brussels on 21 December 1979 (the “SDR Protocol 1979”) shall apply wherethe Hague-Visby Rules apply, whether mandatorily or by this Contract.

The Carrier shall in no case be responsible for loss of or damage to cargo arising prior to loading, afterdischarging, or while the cargo is in the charge of another carrier, or with respect to deck cargo and liveanimals.

(3) General Average

General Average shall be adjusted, stated and settled according to York-Antwerp Rules 1994 in Londonunless another place is agreed in the Charter Party.

Cargo’s contribution to General Average shall be paid to the Carrier even when such average is theresult of a fault, neglect or error of the Master, Pilot or Crew.

(4) New Jason Clause

In the event of accident, danger, damage or disaster before or after the commencement of the voyage,resulting from any cause whatsoever, whether due to negligence or not, for which, or for theconsequence of which, the Carrier is not responsible, by statute, contract or otherwise, the cargo,shippers, consignees or the owners of the cargo shall contribute with the Carrier in General Average tothe payment of any sacrifices, losses or expenses of a General Average nature that may be made orincurred and shall pay salvage and special charges incurred in respect of the cargo. If a salving vesselis owned or operated by the Carrier, salvage shall be paid for as fully as if the said salving vessel orvessels belonged to strangers. Such deposit as the Carrier, or his agents, may deem sufficient to coverthe estimated contribution of the goods and any salvage and special charges thereon shall, if required,be made by the cargo, shippers, consignees or owners of the goods to the Carrier before delivery.

(5) Both-to-Blame Collision Clause

If the Vessel comes into collision with another vessel as a result of the negligence of the other vesseland any act, neglect or default of the Master, Mariner, Pilot or the servants of the Carrier in thenavigation or in the management of the Vessel, the owners of the cargo carried hereunder will indemnifythe Carrier against all loss or liability to the other or non-carrying vessel or her owners in so far as suchloss or liability represents loss of, or damage to, or any claim whatsoever of the owners of said cargo,paid or payable by the other or non-carrying vessel or her owners to the owners of said cargo and set-off, recouped or recovered by the other or non-carrying vessel or her owners as part of their claimagainst the carrying Vessel or the Carrier.The foregoing provisions shall also apply where the owners, operators or those in charge of any vesselor vessels or objects other than, or in addition to, the colliding vessels or objects are at fault in respect ofa collision or contact.

For particulars of cargo, freight, destination, etc., see overleaf.




Address:

Name:Address:


SHIPPER


CONSIGNEE

NOTIFY PARTY

TO ORDER


NAME OF VESSEL

M.V. TARDY TESSA

PORT OF LOADING

PORT OF DISCHARGE





CLEAN ON BOARD

84,000.052 MT










4 OCTOBER 2016

SIGNATURE


SECOND ORIGINAL

4 October 2016 2




IMOBL11223344X


PAGE 2 of 2








(3) General Average











Address:

Name:Address:


SHIPPER


CONSIGNEE

NOTIFY PARTY

TO ORDER


NAME OF VESSEL

M.V. TARDY TESSA

PORT OF LOADING

PORT OF DISCHARGE





CLEAN ON BOARD

84,000.052 MT










4 OCTOBER 2016

SIGNATURE


THIRD ORIGINAL

4 October 2016 2




IMOBL11223344X


PAGE 2 of 2








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FURNACE TRADING PTE LTD

#02-14

Eu Tong Seng Building 469G

Bukit Timah Road, Singapore

INVOICE

Messrs : Inferno Resources Sdn Bhd

Invoice

No.

: 1002/2016

Vessel : MV TARDY TESSA

L/Port : Newcastle, New South Wales, Australia

D/Port : Any SP/SB in China (Out of Dalian, Jinzhou, Yingkou, Yantai,

Qingdao, Shanghai, Tianjin, Ningbo)

B/L No : 1MOBL11223344X

B/L Date : 4 October 2016

DESCRIPTION QUANTITY FRT RATE AMOUNT

Australian Steam

Coal in Bulk 84,000.052

USD 9.18 (basis Shanghai,

additional freight if any to be added

after nomination of disport)

USD 771,120.48

Total USD 771,120.48

Please kindly remit the above amount to the following account at your earliest:

Bank : Big Wealthy Bank, Singapore

Account No. : 6110-002-189

Swift Code : SGGSXXCG

In favour of : TCP

Gordon Grill

Furnace Trading Pte Ltd

Date: 9 October 2016


From: Gordon Grill

Sent: Monday, 10 October, 2016 18:23 PM To: 'Eric Yan'

Cc: Nuriputri Bte Mohammad; [email protected] Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP

Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible Best, GG

From: Gordon Grill


Cc: Nuriputri Bte Mohammad; [email protected]

Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP Eric Yan / Gordon Grill Gd Day As per cp, owners require charterers to declare discharging port before passing Singapore. Owners have not received confirmation from charterers regarding discharging port even though subject vessel sailed Singapore. Charters to declare disport ASAP. Time/costs for deviation due to late declaration of disport for charterers account. Details to be provided in due course. Owners’ rights remain reserved. Best, GG


From: Gordon Grill



Eric Yan / Gordon Grill Gd day Owners have not received freight from charterers. Freight to be paid within five (5) baking days after completion of loading and signing / release of bills of lading (i.e. payment to be made by 9 Oct). Kindly remite freight forthwith and without delay. Owners’ rights remain reserved. Best, GG

From: Eric Yan Sent: Tuesday, 11 October, 2016 19:30 PM

To: 'Gordon Grill'

Cc: [email protected]; Titipuspa Baswani' Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP

Gordon Grill / Eric Yan Confirm receipt and sent to chrts with a request to act expediently and w/o delay. Krgds, Eric

From: Gordon Grill Sent: Wednesday, 12 October, 2016 11:00 PM

To: 'Eric Yan'


Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT


TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata CHRTS URGENTLY TO DECLARE DISPORT TO AVOID HUGE LOSSES Best, GG

From: Eric Yan

Sent: Wednesday, 12 October, 2016 11:30 AM To: 'Gordon Grill'


Gordon Grill / Eric Yan Confirm receipt. Message has been sent to charts. Krgds, Eric

From: Gordon Grill

Sent: Thursday, 13 October, 2016 11:00 AM To: 'Eric Yan'


Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP

Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT


COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 13th OCT USD10,000 X 2.166667 days = USD21,666.67 CHRT’S URGENTLY REQUESTED TO DECLARE DISPORT Best, GG

From: Gordon Grill

Sent: Friday, 14 October, 2016 11:00 AM To: 'Eric Yan'



Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT


ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 14th OCT USD10,000 X 3.166667 days = USD31,666.67 CHRT’S URGENTLY REQUESTED TO DECLARE DISPORT. Best, GG

From: Gordon Grill

Sent: Friday, 14 October, 2016 12:21 PM To: 'Eric Yan'


Eric Yan / Gordon Grill Good day URGENT As per CP, freight to be paid within five (5) banking days after completion of loading and signing / release bills of lading. Chrts have failed to remit the freight thus far and thus Owrs put Chrts on notice to make payment forthwith. Take notice ownrs reserves rights to terminate Cp under the terms of the CP on basis non payment freight. Chrts are also urgently requested to provide instructions for vessel to proceed to disport without delay. All ownrs rights remain reserved.


From: Gordon Grill

Sent: Saturday, 15 October, 2016 11:00 AM To: 'Eric Yan'


Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 15th OCT USD10,000 X 4.166667 days = USD41,666.67 CHRT’S URGENTLY REQUESTED TO DECLARE DISPORT. Best, GG

From: Eric Yan

Sent: Saturday, 15 October, 2016 16:23 PM To: 'Gordon Grill'


Good day,


Received the following msg from chrts QUOTE Dear Eric, Please ask ownrs to be patient. We are unable to nominate disport and make payment of freight as we have yet to receive the same from sub-chrts. UNQUOTE

From: Gordon Grill

Sent: Saturday, 15 October, 2016 17:21 PM To: 'Eric Yan'


Eric Yan / Gordon Grill Good day, Well received from Charters. This is no answer to ownrs request for payment of freight and nomination of disport. Charts failure is a clear and extremely serious breach of the CP terms. Ownrs repeat urgent request for disport instructions and payment of freight.

From: Gordon Grill

Sent: Sunday, 16 October, 2016 11:00 AM To: 'Eric Yan'




ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 16th OCT USD10,000 X 5.166667 days = USD51,666.67 PLEASE NOTE THAT DRFTING COSTS IS INCREASING DAILY. CHRTS ARE URGENTLY REQUESTED TO DECLARE THE DISCHARGING PORT IN ORDER TO MINIMIZE LOSSES ARISING FROM CHTR’S BREACHES OF CP OWNRS RIGHTS REMAIN RESERVED Best, GG

From: Eric Yan


To: 'Gordon Grill' Cc: [email protected]; Titipuspa Baswani'


Gordon, Chrts just spoke to me and requested to adv whether vsl can divert to Busan, South Korea due to congestion at Chinese ports.

From: Gordon Grill Sent: Sunday, 16 October, 2016 16:21 PM

To: 'Eric Yan'


Eric Yan / Gordon Grill Good day,


Unfortunately, Busan South Korea is not within permitted range under the CP between ownrs and headownrs. Also not within permitted range under CP between ownrs and chrts. Thus, Chrts request politely declined. Chrts are urgently requested to declare final disport as per CP. Awaiting reply from chrts urgently.

From: Eric Yan


To: 'Gordon Grill' Cc: [email protected]; Titipuspa Baswani'


Gordon, Kindly note below response from Chrts QUOTE Dear Eric, Chrts repeat request for disport to be Busan, South Korea. We are aware that this is not the option available as per the original CP, however, we request the owners for their co-operation. We also understand that this will mean an extra distance to the disport and we are ready to amend frt rate on open book bss. Awaiting positive response from Ownrs UNQUOTE

From: Gordon Grill

Sent: Monday, 17 October, 2016 09:54 AM To: 'Eric Yan'


Eric Yan/ Gordon Grill Good day, Regarding charts msg, please note that owners cannot accommodate chrts in this instance. The reason is that there are rumours that Busan is not a safe port due to zombies arriving from Seoul onboard a train to Busan. Further, the time is not sufficient in order to make necessary arrangement for vsl to safely call at Busan i.e. arrange for armed guards, razor wires, antidotes etc.


Appreciate chrts understanding. Disport to be China as per CP. Best, GG

From: Gordon Grill Sent: Monday, 17 October, 2016 11:02 AM

To: 'Eric Yan'


Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 17th OCT USD10,000 X 6.166667 days = USD61,666.67 PLEASE NOTE THAT DRFTING COSTS IS INCREASING DAILY. CHRTS ARE URGENTLY REQUESTED TO DECLARE THE DISCHARGING PORT IN ORDER TO MINIMIZE LOSSES ARISING FROM CHTR’S BREACHES OF CP OWNRS RIGHTS REMAIN RESERVED


Best, GG

From: Eric Yan

Sent: Monday, 17 October, 2016 11:23 PM To: 'Gordon Grill'


Gordon Grill / Eric Yan Dear Gordon, Kindly note below response from Chrts QUOTE Dear Eric, We request ownrs once again reconsider. Busan is safe now as Korean military have secured the area. Recently few vsls under our TCT called Busan with no issues. We request again ownrs accommodate our request. UNQUOTE

From: Gordon Grill



Eric Yan / Gordon Grill Good Day, Ownrs repeat that Chrts request for Busan is refused. Chrts requested to make legitimate disport nomination urgently. Best, GG

From: Gordon Grill

Sent: Tuesday, 18 October, 2016 11:00 AM To: 'Eric Yan'




Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 18th OCT USD10,000 X 7.166667 days = USD71,666.67 PLEASE NOTE THAT DRFTING COSTS IS INCREASING DAILY. CHRTS ARE URGENTLY REQUESTED TO DECLARE THE DISCHARGING PORT IN ORDER TO MINIMIZE LOSSES ARISING FROM CHTR’S BREACHES OF CP OWNRS RIGHTS REMAIN RESERVED Best, GG

From: Gordon Grill Sent: Tuesday, 18 October, 2016 14:21 PM

To: 'Eric Yan' Cc: Nuriputri Bte Mohammad; [email protected]


Eric Yan / Gordon Grill Gd Day,


Please inform chrts of following: === We have already warned you of the legal consequences created by your current refusal to pay freight and to provide legitimate orders for disport. The vessel is currently awaiting orders as to which disport is to proceed to. The freight of USD [ ] (the minimum due basis []) is due but yet to be paid and the vessel has been incurring drifting charges of USD10,0000 per day since 0800 LT on 11 October because of the delay in nomination of the disport in accordance with the terms of the CP. Take notice that we are preparing to have a lien imposed on the cargo as per the terms of the CP and the bill of lading (which incorporates CP terms) for the sums due unless we receive a satisfactory response from you with regard to freight and instructions. We await a response urgently. === Thanks, Best, GG

From: Eric Yan

Sent: Wednesday, 19 October, 2016 09:21 AM To: 'Gordon Grill'

Cc: [email protected]; Titipuspa Baswani'


Dear Gordon, Kindly note below response from Chrts QUOTE Dear Eric, We request ownrs once again be patient. Chrts have also yet to receive legitimate disport nomination or freight from sub-chrts who are also the shippers on the bills of lading. UNQUOTE

From: Gordon Grill

Sent: Wednesday, 19 October, 2016 11:00 AM To: 'Eric Yan'




Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:- ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 19th OCT USD10,000 X 8.166667 days = USD81,666.67 Best, GG

From: Gordon Grill

Sent: Wednesday, 19 October, 2016 13:20 PM To: 'Eric Yan'


Eric Yan / Gordon Grill Gd Day, Please inform chrts of following: ===


TOP URGENT TAKE NOTICE THAT YOUR CONTINUED REFUSAL TO NOMINATE A LEGITIMATE DISPORT IN ACCORDANCE WITH CP AND TO PAY FRIEGHT AMOUNTING TO USD [ ] BASIS [ ] DISCHARING IS WRONGFUL AND AMOUNTS TO A BREACH OF CP TERMS. WE HEREBY GIVE YOU FURTHER NOTICE THAT IF YOU FAIL TO NOMINATE A DISPORT AND REMIT FREIGHT, BY 1200H LT ON 20 OCTOBER 2016, WE WILL HAVE NO CHOICE BUT TO TREAT YOUR CONDUCT AS AN EXPRESS, UNCONDITIONAL AND UNQUIVOCAL THAT YOU HAVE NO INTENTION OF PERFROMING YOUR OBLIGATIONS UNDER THE CP. IF THAT IS SO THEN WE RESERVE OUR RIGHT TO ACCEPT YOUR RENUNCIAION OF THE CP AND TO TERMINATE THE CP AND TO CLAIM FOR YOU ALL LOSSES, DAMAGES, COSTS AND/OR EXPENSES THAT WE HAVE SUFFERED. ALL RIGHTS REMAIN FULLY AND EXPRESSLY RESERVED ===

From: Eric Yan

Sent: Wednesday, 19 October, 2016 14:22 PM To: 'Gordon Grill'


Gordon Grill / Eric Yan Message of today, 19 OCT, confirm receipt and sent to chrts marked top urgent. Krgds, Eric

From: Gordon Grill

Sent: Thursday, 20 October, 2016 11:00 AM To: 'Eric Yan'




ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 20th OCT USD10,000 X 9.166667 days = USD91,666.67 Best, GG

From: Gordon Grill




Eric Yan / Gordon Grill Gd Day, Please inform chrts of following: === NOTICE OF LIEN As you have been well made aware, we have incurred and is continuing to incur substantial losses, costs, expenses and damages as a result of your breaches of the CP which includes, but is not limited to, your failure to pay freight and to nominate a legitimate disport. We are now exercising a lien over the cargo now on board the vessel MV TARDY TESSA in accordance with the terms of the CP to protect our interests and to mitigate the very substantial damages, losses, costs and expenses which we have incurred and continue to incur. All rights remain reserved. ===


Thanks Best, GG

From: Gordon Grill

Sent: Thursday, 20 October, 2016 15:24 PM To: 'Eric Yan'

Cc: Nuriputri Bte Mohammad; [email protected] Subject: RE: Aussie Coal Shpment / M.V. TARDY TESSA – FIXTURE RECAP Eric Yan / Gordon Grill Gd Day, Please inform chrts that the following message has been sent to the shippers === NOTICE OF LIEN ON SUB-FREIGHT We are the disponent owrs of the vessel MV TARDY TESSA. We have been writing to chrts, Inferno Resources, to demand payment of freight and drifting costs and also request that they nominate a legitimate discharge port. To date, freight has not been paid nor has a legitimate discharge port been nominated. We therefore have no choice but to exercise and do hereby exercise our rights under the CP to exercise a lien over the sub-freight payable by yourselves to Inferno Resources or their agent or to such other party to whom the sub-freight is payable, for freight and all other monies due to us under the CP. We now hereby demand that you pay such sub-freight to us. All our rights remain reserved. ===

From: Gordon Grill

Sent: Friday, 21 October, 2016 11:00 AM



Eric Yan / Gordon Grill Gd Day Vessel’s itinerary as follows:-


ARRIVED & NOR TENDERED: : 0200LT 1st OCT COMMENCED LOADING: 0900 LT 2nd OCT COMPLETED LOADING: 0800 LT 4th OCT DEPARTURE: 1615LT 4th OCT TOTAL LOADED CARGO: 84,000.052 MT ARRIVED SINGAPORE FOR BUNKERING: 1515LT 10th OCT ETD SINGAPORE: 0002 LT 11th OCT ETA (China): Please declare disport as soon as possible VSL CURRENT POSITION:- DRIFTING OUTSIDE SG OPL FROM 0800 LOCAL TIME ON 11 OCT OWNRS HAVE NOT RECEIVED CONFIRMATION ON DISPORT. THEREFORE OWNRS ARE NOT ABLE TO INSTRUCT VSL TO PROCEED. PLS CHRTS URGENTLY ADVISE DISPORT WHERE VSL SHOULD PROCEED. ANY TIME / COSTS FOR DEVIATION TO BE FOR CHTR’S ACCOUNT. ACTUAL TIME/BUNKER CONSUMPTION FOR BREACH OF CP FOR CHTR’S ACCOUNT: Daily hire USD 8,000 Bunker Costs USD 2,000 Total USD 10,000 per day Pro-rata Please find below additional costs as of 1100LT 21st OCT USD10,000 X 10.166667 days = USD101,666.67 Best, GG

From: Eric Yan

Sent: Friday, 21 October, 2016 13:22 PM To: 'Gordon Grill'



Gordon Grill / Eric Yan Dear Gordon, Kindly note below response from Chrts QUOTE Dear Eric, We request ownrs to proceed to port Ningbo for discharge of cargo.


As for freight, we are unable to make payment now. We promise payment will be made at disport after cargo discharge. We request ownrs understanding as we have not been paid freight from our sub-charts. UNQUOTE

From: Gordon Grill Sent: Saturday, 22 October, 2016 11:20 AM

To: 'Eric Yan'


Eric Yan / Gordon Grill Gd Day, Please inform chrts of following: === NOTICE OF TERMINATION We note that we are unable to make payment of freight in accordance with terms of CP. We hereby accept your renunciation and repudiatory breach of CP for the purposes of bringing the CP entirely without prejudice to our rights, claims and remedies against you. All rights remain reserved. ===

From: Eric Yan

Sent: Saturday, 22 October, 2016 13:22 PM To: 'Gordon Grill'



Gordon Grill / Eric Yan Confirm that notice of termination of Cp sent to charts. Krgds, Eric

From: Eric Yan Sent: Saturday, 22 October, 2016 16:28 PM

To: 'Gordon Grill'



Gordon Grill / Eric Yan Dear Gordon, Kindly note below response from Chrts QUOTE Chrts regret receiving ownrs notice of termination which chrts consider wrongful. Chrts have always remained ready and willing to perform CP. Chrts now consider ownrs in repudiatory breach of the CP, such breach is also accepted without prejudice to chrts rights to seek damages from ownrs. Chrts rights remain fully and expressly reserved. UNQUOTE

From: Gordon Grill Sent: Saturday, 22 October, 2016 18:52 PM



Eric Yan / Gordon Grill Gd Day, Please inform chrts that we disagree with their last. In any event, we have already instructed lawyers to do the needful. Best, GG


IN THE MATTER OF AN ARBITRATION UNDER THE INTERNATIONAL ARBITRATION ACT (CAP 143A, REV ED 2002) AND THE SINGAPORE

CHAMBER OF MARITIME ARBITRATION RULES

BETWEEN


…CLAIMANT

AND

IDONCARE BERJAYA UTAMA PTY. LTD. …RESPONDENT

NOTICE OF ARBITRATION

REFERENCE OF DISPUTE TO ARBITRATION I.

We are instructed by Furnace Trading Pte Ltd, a company organised and 1.

existing under the laws of Singapore, whose principal office is at 2 Marina

Boulevard #19-05, Singapore 0189990, to represent it in this dispute, the

circumstances of which will be set out in full in this notice.

A voyage charterparty dated 1 September 2016 was entered into between 2.

Furnace Trading Pte Ltd (“Furnace”) as disponent owner and Inferno

Resources Sdn Bhd (“Inferno”) as voyage charterer (the “Voyage


2

Charterparty”). A notice of lien over sub-freights was sent by the Claimant

to the Respondent pursuant to the Voyage Charterparty.

Disputes between the parties have arisen out of the Voyage Charterparty 3.

and the notice of lien over sub-freights that was sent pursuant to the Voyage

Charterparty (the “Disputes”).

The Claimant hereby demands that the Disputes be referred to arbitration in 4.

accordance with Clause 29 of the Voyage Charterparty.

THE PARTIES AND THEIR REPRESENTATIVES II.

The particulars of the Parties to this arbitration are as follows: 5.

Claimant: Furnace Trading Pte Ltd

Address: 2 Marina Boulevard

#19-05

Singapore 018990

Singapore

Tel no: +65 6255 1421

Fax: +65 6255 1422

Representative: Mr Gordon Grill

Respondent: Idoncare Berjaa Utama Pty. Ltd.

Address: 30 Pacific Street #02-04

Newcastle 2300

New South Wales, Australia

Tel no: unknown

Fax: unknown

Representative: unknown


3

THE ARBITRATION AGREEMENT III.

The arbitration agreement between the Parties is contained in Clause 29 of 6.

the Voyage Charterparty, which provides, so far as is relevant, as follows:

“29. LAW & Dispute Resolution

Singapore law and arbitration as per SCMA Rules with 3 arbitrators

Pursuant to Clause 29 of the Voyage Charterparty, the Claimant is entitled 7.

to refer and do hereby refer the Disputes to arbitration.

BRIEF STATEMENT OF THE NATURE AND CIRCUMSTANCES OF IV.

THE DISPUTE

The Claimant time chartered the vessel MV “TARDY TESSA” (the “Vessel”) 8.

(as time charterer) from Imlam Consignorist GmbH (“CMI”) (as owner of the

Vessel) pursuant to a time charterparty. A copy of the time charterparty is

annexed hereto.

In turn, the Claimant (as disponent owner) voyage chartered the Vessel to 9.

the Inferno Resources Sdn Bhd (“Inferno”) (as voyage charterer) for the

carriage of 80,000 mt 10% MOLOO Australian Steam Coal pursuant to the

Voyage Charterparty. A copy of the voyage charterparty is annexed hereto.

It is alleged, and the Claimant is unable to verify, that the Vessel was 10.

subsequently sub voyage chartered by Inferno to the Respondent.


4

A bill of lading no. IMOBL11223344X dated 4 October 2016 (the “B/L“). A 11.

copy of the B/L is annexed hereto.

By clause (1) of the conditions of carriage on the reverse of the B/L, the 12.

B/L incorporates all “terms and conditions, liberties and exceptions of the

“Charter Party, dated as overleaf”.

The BL was consigned “To order”. The BL refers on its face to “Freight 13.

payable as per Charterparty dated” but no charterparty has been identified.

The Claimant issued Invoice No. 1002/2016 to Inferno on 9 October 2016 14.

for a sum of USD US$771,120.48 being 100% freight due under the Voyage

Charterparty on the basis Shang Hai would be the discharge port . A copy of

the Invoice is annexed hereto.

However, wrongfully and in breach and/or repudiatory breach of the Voyage 15.

Charterparty, the Inferno failed to pay the freight.

The Claimant therefore exercised a valid lien under Singapore law over the 16.

sub-freights under the Voyage Charterparty. On 20 October 2016, the

Claimant’s sent the Respondent its notice of lien over sub-freights.

Despite numerous repeated demands for the sub-freight, the Respondent 17.

has failed to pay any of the sub-freight to date.

RELIEFS AND REMEDIES SOUGHT V.

The Claimant seeks an award for various reliefs including but not limited to 18.


5

(1) Sub-freight in the sum of US$771,120.48 or such amount to be

assessed;

(2) A declaration that the Claimant is entitled to exercise a lien over the

Cargo and all sub-freights payable in respect of the Cargo for freight,

demurrage, claims for damages and for all other amounts due under

the Voyage Charterparty including costs of recovering the same;

(3) A declaration that the exercise of the lien over the sub-freight is a

valid and lawful one;

(4) An indemnity in respect of any and all costs, claims, damages,

losses and expenses whatsoever incurred as a result of the exercise

of their lien;

(5) Such order for the preservation, detention, interim custody or sale of

the Cargo as may be necessary;

(6) Interest on such amount at such rate and for such period as the

Arbitral Tribunal deems fit;

(7) Costs (including but not limited to costs of the arbitration and the

Claimant’s legal and other costs); and

(8) Such further and/or other relief, remedies or orders as the Arbitral

Tribunal deems fit.

28. The Claimant reserves the right to claim such further or other losses,

damages, costs and/or expenses and seek such further or other reliefs or

remedies as the Claimant may be entitled to at the time the Claimant

submits its Statement of Claim.


6

APPOINTMENT OF ARBITRATOR VI.

29. The Claimant will leave it to the SCMA to decide on the appointment of its

arbitrator on the basis that such arbitrator is appointed from SCMA’s panel

of arbitrators.

OTHER MATTERS VII.

30. For the avoidance of doubt, the matters set out hereunder and the

documents attached herewith are intended to outline the general nature of

the Claimant’s claim solely for the purposes of this Notice and does not limit

the matters to be raised by the Claimant in this arbitration.

31. The Claimant reserves its right to add to, supplement, vary or amend the

claims and reliefs sought, and to present arguments in accordance with the

rules to be determined by properly appointed and constituted tribunal, during

the course of the arbitration and up to the date of the Award.

Dated this 25th day of November 2016

SOLICITORS FOR THE CLAIMANT

To: Idoncare Berjaya Utama Pty. Ltd.

Address: 30 Pacific Sreet #02-04

Newcastle 2300

New South Wales

Australia




BETWEEN


…CLAIMANT

AND

INFERNO RESOURCES SDN BHD …RESPONDENT

NOTICE OF ARBITRATION

REFERENCE OF DISPUTE TO ARBITRATION I.

We are instructed by Furnace Trading Pte Ltd, a company organised and 1.

existing under the laws of Singapore, whose principal office is at 2 Marina

Boulevard #19-05, Singapore 0189990, to represent it in this dispute, the

circumstances of which will be set out in full in this notice.

A voyage charterparty dated 1 September 2016 was entered into between 2.

Furnace Trading Pte Ltd (“Furnace”) as disponent owner and Inferno

Resources Sdn Bhd (“Inferno”) as voyage charterer (the “Voyage

Charterparty”).


2

Disputes between the Parties have arisen out of and/or in connection with 3.

the Voyage Charterparty, a brief statement of which is set out at Section V

of this Notice of Arbitration (“Disputes”).

The Claimant hereby demands that the Disputes be referred to arbitration in 4.

accordance with Clause 29 of the Voyage Charterparty.

THE PARTIES AND THEIR REPRESENTATIVES II.

The particulars of the Parties to this arbitration are as follows: 5.

Claimant: Furnace Trading Pte Ltd


#19-05

Singapore 018990

Singapore

Tel no: +65 6255 1421

Fax: +65 6255 1422

Representative: Mr Gordon Grill

Respondent: Inferno Resources Sdn Bhd

Address: Suite No. 2, Level 3

South Wing, Pasar Borong Pandan

Kangkar Tebrau, Pusat Perdagangan Pandan

81100 Johor Bahru

Malaysia

Tel no: +60 07 78100 3000

Fax: +60 07 78100 3001

Representative: Capt C. Cook


3

THE ARBITRATION AGREEMENT III.

The arbitration agreement between the Parties is contained in Clause 29 of 6.

the Voyage Charterparty, which provides, so far as is relevant, as follows:

“29. Dispute Resolution

Singapore law and arbitration as per SCMA Rules with 3 arbitrators

Pursuant to Clause 30 of the Voyage Charterparty, the Claimant is entitled 7.

to refer and do hereby refer the Disputes to arbitration.

BRIEF STATEMENT OF THE NATURE AND CIRCUMSTANCES OF IV.

THE DISPUTE

The Claimant time chartered the vessel MV “TARDY TESSA” (the “Vessel”) 8.

(as time charterer) from Imlam Consignorist GmbH (“CMI”) (as owner of the

Vessel) pursuant to a time charterparty. A copy of the time charterparty is

annexed hereto

In turn, the Claimant (as disponent owner) voyage chartered the Vessel to 9.

the Respondent (as voyage charterer) for the carriage of 80,000 mt 10%

MOLOO Australian Steam Coal pursuant to the Voyage Charterparty. A

copy of the voyage charterparty is annexed hereto.

A bill of lading no. IMOBL11223344X dated 4 October 2016 (the “B/L“). A 10.

copy of the B/L is annexed hereto.


4

By clause (1) of the conditions of carriage on the reverse of the B/L, the 11.

B/L incorporates all “terms and conditions, liberties and exceptions of the

“Charter Party, dated as overleaf”.

The BL was consigned “To order”. The BL refers on its face to “Freight 12.

payable as per Charterparty dated” but no charterparty has been identified.

The Claimant issued Invoice No. 1002/2016 to Inferno on 9 October 2016 13.

for a sum of USD US$771,120.48 being 100% freight due under the Voyage

Charterparty on the basis Shang Hai would be the discharge port . A copy of

the Invoice is annexed hereto.

Pursuant to Clause 16 the Respondent was to declare the discharge port 14.

(i.e. Any SP/SB in China out of Dalian, Jinzhou, Yingkou, Yantai, Qingdao,

Shanghai, Tianjin, Ningbo) before the Vessel passed Singapore.

However, wrongfully and in breach and/or repudiatory breach of the Voyage 15.

Charterparty, the Respondent:

(1) Failed to pay the freight. Despite numerous repeated demands for

the freight, the Respondent has failed to pay any of the freight to

date; and

(2) Failed to nominate a legitimate discharge port on time.

As a result of the foregoing, the Claimant has suffered substantial loss and 16.

damages for detention of the Vessel for the failure to nominate a legitimate

discharge port on time and further damages as result of the continued


5

detention of the Vessel as a result of the Respondent’s failure to pay the

freight and other amounts due under the Voyage Charterparty to date.

The Claimant is also exercising a valid lien under Singapore law which they 17.

can exercise over the Cargo under the Voyage Charterparty. As of this

moment, the Claimant has maintained and is still maintaining its lien over

the Cargo on the Vessel, and will do so until such time the Claimant is paid

in accordance with the terms of the Voyage Charterparty.

RELIEFS AND REMEDIES SOUGHT V.

The Claimant seeks an award for various reliefs including but not limited to 18.

(1) Freight in the sum of US$771,120.48 or such amount to be

assessed;

(2) Damages for detention to be assessed;

(3) Further damages which are continuing to accrue on a daily basis

until such time the lien over the Cargo is discharged and such

damages to be assessed;

(4) Costs and expenses including the costs of exercising the lien to

recover the freight and other sums due;

(5) Damages for breach or breaches of the Voyage Charterparty to be

assessed;

(6) A declaration that the Claimant is entitled to exercise a lien over the

Cargo and all sub-freights payable in respect of the Cargo for freight,

demurrage, claims for damages and for all other amounts due under

the Voyage Charterparty including costs of recovering the same;


6

(7) A declaration that the exercise of the lien over the Cargo is a valid

and lawful one;

(8) An indemnity in respect of any and all costs, claims, damages,

losses and expenses whatsoever incurred as a result of the exercise

of their lien;

(9) Such order for the preservation, detention, interim custody or sale of

the Cargo as may be necessary;

(10) Interest on such amount at such rate and for such period as the

Arbitral Tribunal deems fit;

(11) Costs (including but not limited to costs of the arbitration and the

Claimant’s legal and other costs); and

(12) Such further and/or other relief, remedies or orders as the Arbitral

Tribunal deems fit.

28. The Claimant reserves the right to claim such further or other losses,

damages, costs and/or expenses and seek such further or other reliefs or

remedies as the Claimant may be entitled to at the time the Claimant

submits its Statement of Claim.

APPOINTMENT OF ARBITRATOR VI.

29. The Claimant will leave it to the SCMA to decide on the appointment of its


of arbitrators.


7

OTHER MATTERS VII.

30. For the avoidance of doubt, the matters set out hereunder and the

documents attached herewith are intended to outline the general nature of

the Claimant’s claim solely for the purposes of this Notice and does not limit

the matters to be raised by the Claimant in this arbitration.

31. The Claimant reserves its right to add to, supplement, vary or amend the

claims and reliefs sought, and to present arguments in accordance with the

rules to be determined by properly appointed and constituted tribunal, during

the course of the arbitration and up to the date of the Award.


SOLICITORS FOR THE CLAIMANT

To: Inferno Resources Sdn Bhd

Address: Suite No. 2, Level 3

South Wing, Pasar Borong Pandan

Kangkar Tebrau, Pusat Perdagangan Pandan

81100 Johor Bahru

Malaysia




BETWEEN


…CLAIMANT

AND


RESPONSE TO NOTICE OF ARBITRATION

Pursuant to Rule 5 of the SCMA Arbitration Rules, the Respondent serves 1.

this response to the Notice of Arbitration (the “Notice”) by the Claimant,

dated 25 November 2016 (the “Response”).

For the purposes of this Response, the Respondent adopts the 2.

abbreviations employed in the Notice where applicable.

Denial of all claims advanced by the Claimant in the Notice I.

Save as otherwise expressly stated, or otherwise expressly admitted, the 3.

Respondent denies each and every allegation made in the Notice.

The Respondent denies that is liable to Furnace for freight. Freight, is any, 4.

is due only to the Respondent’s contracting party, Inferno. Not to the


2

Claimant. It is averred that the Claimant is not entitled to any remedy or

relief as claimed in its Notice or at all.

The Respondent reserves its right to respond more fully by way of a 5.

Statement of Respondent’s Defence to any Statement of Claimant’s case if

and when is delivered in accordance with Rule 8 of the Rules of as may be

directed by the Arbitral Tribunal.

THE ARBITRATION AGREEMENT II.

The Respondent disagrees that the Dispute arises out of or in connection 6.

with the Voyage Charterparty or that such Dispute is to be referred to

arbitration pursuant to Clause 29 of the Voyage Charterparty.

However, the Respondent will consent to having this dealt with by SCMA 7.

arbitration. In this regard, the Respondent notes that the Claimant has

declined to appoint its own arbitrator and has instead, left it to the SCMA.

The Respondent will also leave it to the SCMA to decide on the appointment 8.

of its arbitrator on the basis that such arbitrator is appointed from SCMA’s

panel of arbitrators.


SOLICITORS FOR THE RESPONDENT


3

To: Furnace Trading Pte Ltd


#19-05

Singapore 018990

Singapore




BETWEEN


…CLAIMANT

AND


RESPONSE TO NOTICE OF ARBITRATION

Pursuant to Rule 5 of the SCMA Arbitration Rules, the Respondent, Inferno 1.

Resources Sdn Bhd (“Inferno”) serves this response to the Notice of

Arbitration (the “Notice”) by the Claimant, Furnace Trading Pte Ltd dated 25

November 2016 (the “Response”).

For the purposes of this Response, Inferno adopts the abbreviations 2.

employed in the Notice where applicable.


2

Denial of all claims advanced by the Claimant in the Notice I.

Save as otherwise expressly stated, or otherwise expressly admitted, 3.

Inferno denies each and every allegation made in the Notice.

Inferno denies that is liable to Furnace in contract and/or in tort for any 4.

claims for damages, losses, interests and costs allegedly arising from

Inferno’s alleged breaches of contract. It is averred that Furnace is not

entitled to any remedy or relief as claimed in its Notice or at all.

Inferno also reserves its right to respond more fully by way of a Statement of 5.

Respondent’s Defence to any Statement of Claimant’s case if and when is

delivered in accordance with Rule 8 of the Rules of as may be directed by

the Arbitral Tribunal.

THE ARBITRATION AGREEMENT II.

Without prejudice to the foregoing, Inferno agrees that so far as the Dispute 6.

arises out of or in connection with the Voyage Charterparty, such dispute is

to be referred to arbitration pursuant to Clause 29 of the Voyage

Charterparty.

Inferno notes that Furnace has declined to appoint its own arbitrator and has 7.

instead, left it to the SCMA.


3

Inferno will also leave it to the SCMA to decide on the appointment of its 8.


of arbitrators.


SOLICITORS FOR THE RESPONDENT

To: Furnace Trading Pte Ltd


#19-05

Singapore 018990

Singapore




BETWEEN


…CLAIMANT

AND




BETWEEN


…CLAIMANT

AND


URGENT APPLICATION FOR CONSOLIDATION AND LIBERTY TO SELL THE CARGO ON BOARD THE M.V. “TARDY TESSA” PENDENTE LITE


2

The Claimant, FURNACE TRADING PTE LTD, in the above two captioned

arbitrations, hereby applies for the following:

The two captioned arbitrations be consolidated forthwith into one arbitration 1.

proceeding and heard together in one single arbitration proceeding;

The Claimant be at liberty to appraise and sell the cargo presently lying on 2.

board the M.V. “TARDY TESSA” (IMO No. 99223311) (the “Vessel”), said

to be 84,000.052 MT of Australian Steam Coal in Bulk (the “Cargo”),

shipped under a bill of lading No. IMOBL11223344X, “as is where is” and

on such other terms this Tribunal deems fit;

The Claimant be at liberty to deduct all of its costs of and incidental to this 3.

application, the appraisement and sale of the Cargo on a full indemnity

basis from the proceeds of sale of the Cargo and to retain the balance of the

said proceeds of sale pending the final determination of this arbitration

proceeding; and

An oral hearing of this application to be fixed and heard on an urgent basis. 4.

The grounds of the Claimant’s application are:

The Tribunal has the jurisdiction pursuant to the provisions of the 1.

International Arbitration Act (Cap 143A) to order the sale of the cargo on

board the Vessel pendente lite.

The Claimant has a valid and enforceable lien over the Cargo in respect of 2.

freight, detention, damages and all amounts due under the Charterparty.


3

The circumstances of the case are such that it is just and necessary for the 3.

Tribunal to order the sale of the cargo.

Claimant reserves the right to add to, supplement, vary or amend the foregoing and

to present arguments and make submissions at the oral hearing of this application.

Dated this 1st day of December 2016

SOLICITORS FOR THE CLAIMANT,





BETWEEN


…CLAIMANT

AND




BETWEEN


…CLAIMANT

AND


RESPONSE CLAIMANT’S URGENT APPLICATION FOR CONSOLIDATION

AND LIBERTY TO SELL THE CARGO ON BOARD THE M.V. “TARDY TESSA” PENDENTE LITE


2

The Respondent, IDONCARE BERJAYA UTAMA PTY. LTD., hereby states the

following:

The Respondent has no objections to the consolidation of the two above 1.

captioned arbitration proceedings; and

The Respondent has no interest in and takes no position vis-à-vis the 2.

remainder of the Claimant’s application. The Respondent declines to make

submissions at the oral hearing of the Claimant’s application and would

leave this Tribunal to determine the same as it deems fit and proper.

Dated this 2nd day of December 2016

SOLICITORS FOR THE RESPONDENT,

IDONCARE BERJAYA UTAMA PTY. LTD.




BETWEEN


…CLAIMANT

AND




BETWEEN


…CLAIMANT

AND


RESPONSE CLAIMANT’S URGENT APPLICATION FOR CONSOLIDATION

AND LIBERTY TO SELL THE CARGO ON BOARD THE M.V. “TARDY TESSA” PENDENTE LITE


2

The Respondent, INFERNO RESOURCES SDN BHD, hereby states the following:

The Respondent has no objections to the consolidation of the two above 1.

captioned arbitration proceedings and for an oral hearing to be fixed to hear

the Claimant’s application; but

The Respondent objects to the Claimant’s application for liberty to sell the 2.

cargo on board the MV TARDY TESSA pendent lite for the following

reasons:

(1) This Tribunal does not have the jurisdiction and/or power to grant

liberty to the Claimant to sell the cargo on board the MV TARDY

TESSA pendente lite.

(2) The Respondent is not liable to the Claimant for detention and/or

other damages under the Voyage Charterparty.

(3) The Claimant is not entitled to exercise any lien over the cargo

(4) It is neither necessary nor just for the cargo on board the MV

TARDY TESSA to be sold pendente lite.


3

The Respondent reserves the right to add to, supplement, vary or amend 3.

the foregoing and to present arguments and make submissions at the oral

hearing of this application.

Dated this 2nd day of December 2016

SOLICITORS FOR THE RESPONDENT,

INFERNO RESOURCES SDN BHD


1

_______________________________

PARTIES’S JOINT EXPERT REPORT

_______________________________

My Qualification to Comment on Australian Coal

My name is Caleb Coalman. I have sold, traded, brokered and consulted on Australian coal in the course of

my 30 year career.

I am the founder and Chief Executive Officer of an International Coal Trading Company, Coals “R” US.

Australian coal is part of my company’s 80,000,000 tonne daily long position. I would personally participate

in the selling of this product to customers and remained 100% responsible for the risk management of my

company's Australian coal position.

Prior to founding Coals “R” us, I worked as a coal broker where I brokered Australian coal. I am familiar with

the API benchmarks for the coal industry.

Finally, I have worked at least ten expert witness cases directly focussed on coal of Australian origin.

My Obligations

I confirm that insofar as the facts stated in my report are within my own knowledge I have made clear they

are and I believe them to be correct, and that the opinions I have expressed represent my accurate and

complete professional opinion.

I also confirm that in preparing this report, I am aware that my primary duty is to the Tribunal and not the

person(s) from whom I have received my instructions or by whom I am paid.

The Valuation Report

I am instructed that there is a cargo of steam coal of Australian origin is laden on board the vessel MT

TARDY TESSA , presently currently drifting 10 nautical miles outside Singapore’s port limits .

Should the Tribunal orders a sale of such cargo, I have been asked to assist in the production of a

valuation report of the cargo and have been provided with the following 3 documents:

1. A load port quality certificate titled “Carbon Investigators Certificate of Sampling and Analysis for

the full specification”

2. Stowage Plan

3. Bill of lading no. IMOBL11223344X dated 4 October 2016


2

I understand my report could be used as evidence in an arbitration.

Documents on Which This Report is Based

Carbon Investigators Certificate of Sampling and Analysis for the full specification

This is a certificate of the coal specification by the Carbon Investigators company and is the main

source of proof of coal quality for this report. .

The Coals “R” Us Coal DCER (Daily Coal and Emissions Report)

I used these documents to assess the coal market background in Newcastle NSW. I am unable to

attach a copy of these reports as it is proprietary information owned by Coals “R” Us that I am allowed

to view and use, but am forbidden to share with a third party.

The Coals “R” Us Energy Monthly Price Panel”

I used this document to assess the coal market background in ARA Europe. The chart of year ahead

coal prices in drawn from this document. I am unable to attach a copy of this report as it is proprietary

information owned by Coals “R” Us that I am allowed to view and use, but am forbidden to share with

a third party.

Coal Pricing Background and Explanation

Quality of Steam Coal

As with any commodity, quality of product varies. Steam coal is no different. Broadly speaking, the various

qualities of may be described as follows:

1. Anthracite (highest quality);

2. Bituminous;

3. Sub-bituminous;

4. Lignite (lowest quality).

The quality of these coals are determined largely by a reference to the energy they produce per kilogram.

This is based on an assessment of the coal’s calorific value.

At the middle of the energy value range of these coal qualities, the fuel is deemed to change from bituminous

to sub-bituminous.

Bituminous status is partly judged by impaction and colour. Bituminous coal has been in the ground longer

and has been impacted by weight for longer. The more black, shiny and least wood-like the coal, the more it

is likely to be termed to be bituminous.

The more brown in colour and more wood-like the coal, the more it is likely to be termed sub-bituminous.

Generally speaking the bituminous/sub-bituminous switch point as regards energy value is at around

4500Kcal but coal is not a homogenous product and varies by more than just energy value so this figure is

just a guide.

Other aspects of the headline specification of coal all play their part: sulphur and moisture content, ease of

ignition and ash for example.


3

In this case the coal in question is broadly speaking a sub-bituminous coal with a headline coal specification

thus:

Australian Coal Specific to this Case Gross Calorific Value (K/Cal per Kilo) 4510

Approx. Net Calorific Value (K/cal per Kilo) 4245

Sulphur Content 0.75%

Moisture Content 30.10%

Volatile Matter (Ease of Ignition) 40.30%

And by comparison to a very common specification

Typical South African Benchmark Coal (i.e. TFS Energy benchmark for API Index 1998)

Gross Calorific Value 6265

Approx. Net Calorific Value 6000

Sulphur Content 1%

Moisture Content 14%

Volatile Matter (Ease of Ignition) 24%

There is no one price for coal. Indeed there is no one price for the four master grades mentioned above.

There is no central coal exchange or clearing house. Coal pricing is a bi-lateral matter that takes into account

multiple variables of grade, location, terms and market conditions.

Thus in estimating a price for a cargo, or valuing a coal position, one must take best evidence and accept –

in certain cases, there may have to be a range expressed as opposed to an outright price; but that in

expressing a range an average is presented as a benchmark.

Current Market Conditions

I use the market data of Coals “R” Us for this section. Coals “R” Us is one of the world's largest trader in

over-the-counter financial and commodity related products.

The Chinese coal market has been falling in line with electricity prices since Spring 2011. Here is a chart of

coal prices for ARA China.

ARA Year Ahead Coal Price (6000 K/Cal NAR)

Source: Coals “R” Us


4

As to more local and more recent price drivers the benchmark Newcastle NSW Australia price (serves the

Asia/Pac coal market) prices have risen 9.85% between 04/10/16 and 30/11/16) thus:

Date Coal Value FOB Newcastle NSW*

30/11/2016 $ 58.00

20/11/2016 $ 57.10

12/11/2016 $ 56.80

01/11/2016 $ 57.20

25/10/2016 $ 57.70

19/10/2016 $ 60.05

11/10/2016 $ 59.25

07/10/2016 $ 58.00

04/10/2016 $ 52.80

*Source: Coals “R” Us

However it does not follow that the value of the cargo in question would have risen by the same 9.85%

between 04/10/16 and 30/11/16. One can assume the value of the cargo in question may not have been

overly affected either way by the global down trend, or the more recent firming of the Newcastle NSW price

in the time window set out above.

Valuing the Coal

For the coal cargo I have utilised the benchmarking of CoalSpot.Com in this case. CoalSpot.Com is widely

used in Asia/Pacific market and benefits from free membership which brings widespread scrutiny of their

benchmarking. CoalSpot is strong on sub-bituminous coal benchmarking, whereas other global mainstream

coal benchmarking firms like Platts, Argus, McCloskey tend to follow bituminous and higher Australian coal

grades that travel to European market and pro-rata down to estimate sub-bituminous prices. One has to use

an additional discount factor in such cases which itself changes with the market and is subjective

assessment.

In pricing Australian coal the Total Moisture content is critical and always used as one of the four headline

coal spec metrics. Total Moisture is literally the water content of the coal. Low TM is desirable because

inherent water is heavy to ship and in any event is a key loss when burned in conventional power stations

where it becomes largely waste steam. In fact because Total Moisture is such a variable in Australian coal

trade it is usually cited next to K/cal value as the second key pricing determinant.

My methodology is simple and grounded in coal trading common practice:

Adjust for Energy Value


5

I have taken the Coalspot.com benchmark price for 4200GAR coal with 37% Total Moisture which is $32.50

per metric tonne and divided this by 4200, then multiplied by 4510 (the GAR or Gross As Recieved energy

value of the coal in this case).

Adjust for Moisture Content

I have then added a notional 50 cents per tonne to adjust from 37% total Moisture of the Coalspot

Benchmark to 30.10% being the Total Moisture of the coal in this case.

Valuation Estimates

The mid value for a non-distressed cargo using this approach gives an estimated price of $35.40 and using

84,000.052 metric tonnes as the mid-point for the delivery, a Non-Distressed Cargo Value of $2,973,601.84

Best Case Scenario Value

Using an average of the CoalSpot benchmarking for 5000 K/cal, 24% moisture coal and 4200 K/cal 37%

moisture coal (pro-rata adjusted to 4510 K/cal basis), the best case scenario sale price for the cargo might

be $37.86 giving a Best Case Scenario Cargo Value of $3,180,241.97.

Distressed Cargo Value

The valuation of this cargo must take into account the distressed nature of the load. Most coal buyers are

informed as to the cost of distressed freight and likely to bid prices which reflect the high cost of keeping a

ship on the water with crew and cargo. The level of the discount of a distressed cargo versus a mid value of

a best case scenario value depends entirely on whatever are the very localised market conditions at time of

sale and how much buyers know of the seller’s predicament. However, I have put three discount factors of

5%, 10% and 15% on this cargo to give the tribunal an idea of how much the value of the cargo is reduced if

its circumstances are factored in. Using theses discounts the value of the coal could range from

$2,824,921.75, $2,676,241.66 to $2,527,561.56 respectively. Frankly the discount could be more in this

case, it depends entirely on very local and specific conditions.

I set out my calculations for the Tribunal below:

Coalspot Assessment GAR Basis Moisture Mid-Price in $/mt

4200 37% $ 32.50

Pro-Rate to 4510 K/cal Premium for 37% to 30.1% Moisture

Price Estimate in $/mt at 01/06/15

$ 34.90

$ 0.50

$ 35.40

Cargo size in MT Non-Distressed Cargo Mid-Value Price

Non-Distressed Cargo Mid Value

84,000.052 $ 35.40

$ 2,973,601.84

Cargo size in MT

Coalspot Average of 5000/25 and 4200/37 Benchmarks

Best Case Scenario Cargo Value

84,000.052 $ 37.86

$ 3,180,241.97

Distressed Cargo Discount Distressed Price in $/MT Distressed Cargo Value in $

5% $ $


6

33.63 2,824,921.75

10% $ 31.86

$ 2,676,241.66

15% $ 30.09

$ 2,527,561.56

…………………………………………

03/12/2016

Signed: Caleb Coalman




BETWEEN


…CLAIMANT

AND




BETWEEN


…CLAIMANT

AND


PROCEDURAL ORDER NO. 1


2

The Tribunal has considered the Claimant’s application for consolidation and liberty

to sell the cargo on board the MV. “TARDY TESSA” pendente lite dated 1

December 2016 and the responses received from the respective respondents dated

2 December 2016.

Having considered the matter, the Tribunal:

Directs the oral hearing of the Claimant’s application to be fixed and heard 1.

in Singapore on a date to be fixed in July 2017;

Requires parties to file, by way of an email submission, their written 2.

memoranda by 19 April 2017, 1600h (UTC +8). The email address will be

provided by the Tribunal’s secretary in due course.

Dated this 11th day of December 2016

SOLICITORS FOR THE CLAIMANT,

