This document summarizes several unusual shipping cases that resulted in significant losses: 1) A fertilizer cargo from Qatar to Bangladesh where the charterer did not pay freight on time, costing the owner over $1 million. 2) A cargo discharged at the wrong port in Iran instead of the UAE, with the operator then demanding additional freight from shippers. One shipper sued and the owner lost the case after the operator disappeared. 3) A VLCC where the option to discharge in India was declared too early, forcing the charterers to pay an additional $30,000 fee to change the discharge port. 4) A gas carrier fixed without knowledge of an "oos" clause

1. OPG Power Generation Pvt LtdOPG Power Generation Pvt Ltd
Unusual Cases in Shipping –Unusual Cases in Shipping –
Converting Knowledge into MoneyConverting Knowledge into Money
Presented byPresented by
CK SharmaCK Sharma
MD (Shipping)MD (Shipping)
22nd
March 2017
Leela Hotel Mumbai

2. Fertilizer from PG to Bangla Desh
 This is a case of 2015 for fertilizer cargo from Mesaieed
to Mongla port. Govt. of Bangla Desh regularly moves
Fertilizers from PG to Bangla Desh. A local company
won the tender for the cargo supply. This Company
created a new paper company for Shipping and entered
the market for COA for 5 voyages.
 Since the Shipping company was new they agreed to
pay 60 % advance freight which made the Ship Operator
go for the COA.
 After 3 voyages, the Charterer didn’t pay freight in time
and didn’t pay Liner out costs which were on Charterers
account. Ship Owner had no choice but to unload the
vessel at Owner’s cost to get the vessel out which made
the Owner lose more than a Million USD.
 Certain places will always pose a risk to Ship Owners.

3. Cargo discharge at wrong disport
 Owner protecting unscrupulous Operator:
 A Dubai Operator Hired a vessel from a reputed
Owner & loaded Containers from Bombay for Umm
Quasar from 5 shippers for carrying project cargoes.
He got extra set of OBLs prepared at loadport
showing Dubai as disport. Agent was unaware of the
purpose & was conned.
 Cargo was discharged in Bandar Abbas & vessel
returned to Head Owners showing the fake
documents to Owners.
 Then the Operator asked the Shippers to pay freight
again for reaching the cargo to Umm Quasar.
 Some of the Shippers paid the freight again but one
of them went tough.

4. Cargo discharge at wrong disport - II
 This Shipper went to Bandar Abbas and hired a vessel
to ship the cargo himself to Umm Quasar. Then filed a
case against the Head Owner for all costs.
 Head Owners fearing difficulty, changed the name of the
vessel and stopped her trading in India.
 Shipper got the vessel arrested at Singapore Anchorage
during her bunkering & obtained P&I Club’s Guarantee.
 Head Owner contested the case on the strength of
documents given by the Operator.
 The Operator closed his shop in Sharjah and
disappeared.
 Head Owner lost the case & had to pay up full costs
including legal costs to the Shipper.

5. Declaring Option before time
 A VLCC was Chartered by Oil Industry to transport
Crude from PG to WCI with Charterer’s option to
discharge at Mumbai Lighterage point or at Vadinar
declarable latest passing Quoin Island after loading.
 The concerned company officer declared the disport as
Vadinar when loading had just commenced whereas he
could have waited for 3 more days.
 After loading there was an urgent need to send the
vessel to Mumbai. The Charterers advised the Owner
before reaching Quoin Island that the vessel is required
at Mumbai.
 Owner refused saying that there no provision for
multiple declaration of disport option. Charterers had no
choice but to pay USD 30,000 demanded by Owners to
bring the vessel to Mumbai – an avoidable loss.

6. The famous case of “OOS”
(Owners Option Substitute)
 A Purchase Manager who didn’t know Shipping put his
company to USD 150,000 loss by fixing a Gas carrier
without knowledge. The case is as follows:
 The Purchase Manager made a trip to Norway without
informing the Chartering Manager and fixed a ship with the
Owners.
 The deal provided employment of a vessel mv Igloo Tana
oos on Voyage Charter to transport VCM cargo. Owners
took advantage of the fact that the purchase manager had
no clue what is oos. Owners insisted for 72 hrs laytime as
per ASBATANKVOY and Demurrage rate of USD 12,000 per
day. This was correct demurrage rate for Igloo Tana, a new
Ethylene carrier with minus 104 deg C capability. VCM is
normally carried in cheap old vessels as it needs carrying
temp minus 04 deg C.

7. The famous case of “OOS”
(Owners Option Substitute) - II
 The discharge time required for Lighterage for VCM was
15 days as against agreed laytime of 72 hours.
 Owners deployed a junk old vessel costing about USD
5,000 per day but charged demurrage of USD 12,000 per
day as per CP.
 When he explained the meaning of OOS, the purchase
dept was depressed and said that they had seen this
word in last C/P. But little did they realize that last time
OOS was protected by a following clause which said:
“Substitute vessel, if any, subject to Charterers approval which
shall not be unreasonably withheld”
 Chartering is indeed complicated affair and the skills of a
knowledgeable Chartering Officers must be respected.

8. Case of 2 freight payments for same cargo
 A reputed Group Company in India has to import a
Project cargo from China to Bombay. They had to hire a
ship.
 Sellers recommended their agent in India for helping to
arrange the ship. It was a friendly recommendation.
 The agent worked as broker and fixed a Korean vessel
to load 40,000 mts of Project cargo @USD 1.5 Million
and agreed to take freight in Indian Rupees in Bombay.
 Ship loaded in time & Charterers paid the freight as per
CP to the agent/broker in Bombay.
 But the Ship Owner did not release the BLs saying that
the freight was not received by them.
 The agent had closed his office and disappeared.
 Charterers had to pay freight again to the Ship Owner.
 Rest is history.

9. Surprises are always there – Can you
possibly check everything?
Charterers - Buck GmbH Consulting and Trading
(German co) Vsl – Mv. Agria ; Cargo – Iron ore.
Vsl arrived loadport Vizag. Buck/shippers had no
workable L/C. Cargo was ready.
After 20-25 days Buck Germany called “Force majeure”
Now Owners are proceeding to Arbitration.
Surprisingly, Buck Shipping, a 25 year old company has
no assets. Although their sister company has assets.
“Check before fixing” was not followed but carried away
by big name of Principal.
Now we have claim of over USD 250,000 with
questionable chances of recovery.
Moral:: Be careful for every breath if u are in Shipping.

10. Vessel not completed loading in 30 days …..
Charterers Dilemma
 A multi Billion dollar Indian Company hired a ship to
load Coal from Indonesia to East Coast India.
 Ship arrived loadport in time.
 Shipper could load only 35,000 mts cargo in a Panamax
and took 30 days.
 Charterers decided to absorb the dead-freight loss and
asked thee vessel to proceed to India.
 Master said that the Coal cargo is smoking/burning and
has to be unloaded at loadport only.
 QUESTION:::
 WHAT SHOULD CHARTERERS DO?

11. Ports & vessels with similar Names
 London & East London case.
 China:
 vessel at Shanghai was fixed to load at
ZhAnjiang (south China) but proceeded to
Zhanjiang……. Map on next page.
 Voyage Instruction of mv Maharshi Karve given
to Maharshi Dayanand.
 Operations Dept is the most important dept of a
Ship Operating and Ship Owning Company to
save the company from surprise costs.

13. THANK YOU FRIENDS