Shipping Australia Limited’s Post

CHARTERERS & LIABILITY    Did you know that the identity of the carrier is determined by the name shown on the face of the Bill of Lading and/or by the signature on the Bill of Lading?    CARGO LIABILITIES  In Bills of Lading the #liabilities for #damages or losses to cargo are regulated by the mandatory application of the international conventions and local laws. In most countries this will be the Hague (Visby) Rules or the Hamburg Rules. Many countries have incorporated these rules in their local law. In charterparties the parties have freedom of contract. It will therefore be necessary to scrutinize every single charterparty before determining the liability about cargo claims between the parties. Other than the bills of lading and charterparty clauses a further investigation is necessary about the role of the charterer, the shipowner and the master during the loading and discharging operations. Certain interventions may shift the liability and it is also important to find out which party has ordered the stevedores to load and unload the #cargo.    DAMAGE TO HULL LIABILITIES  In principle the charterers are liable for #damages to the vessel caused by the cargo or by stevedores during #loading and #unloading, caused by an unsafe port or berth, caused by off spec bunkers when the bunkers were ordered by the charterer. It is common to find in charterparties a clause that stevedore damages must be settled directly between the shipowner and the stevedores. If that is practically possible it will solve the matter, however, if the stevedores refrain from acting, the charterer will remain ultimately liable for these damages.     If you wish to know more about Charterers & Liability you can apply to our Masterclass presentation.    Continue reading on our website: https://lnkd.in/eAV7bDVn    #IMU #CharterersLiability #MarineInsurance 

Dali update I completely agree in limited liability company structure. Don’t agree with the maritime general average or the math behind the limited liability cap: “Their joint filing seeks to cap the companies’ liability at roughly $43.6 million. It estimates that the vessel itself is valued at up to $90 million and was owed over $1.1 million in income from freight. The estimate also deducts two major expenses: at least $28 million in repair costs and at least $19.5 million in salvage costs.” So the owner,m and manager feel they need to pay $43.6 million based on maritime law? Grant it the court can decide differently but there is precedent. And the general average will pay how much? So, what will the Dali owner, manager, and possibly charterer pay out of pocket? My guess is large majority falls under the shippers and tax payers to rebuild the bridge. Experts please provide education and is sight for all… #dali #baltimoreport

I just read another article posted by KDL where they talked about the temporary lanes and clean up procedure wet up with get things moving and I wanted to find out more about the liability of the event. One of the quote "a Pre-Civil War era law" was used to ask to limit the liability of the shipping company. What do you think about this? When I look at what could go onto a ship from 1860 versus today's mega ships I can't imagine this law not getting updated or completely changed. #Baltimore #Freight #Container

The decision in CSL Australia Pty Ltd v Tasmanian Ports Corporation Pty Ltd (The Goliath) [2024] FCA 824 serves as an important reminder that words don't always mean what they appear to say, and that history, purpose and context are crucial factors in determining meaning. Key takeaways from the decision include that: ⚫ the limitation regime under the Convention on Limitation of Liability for Maritime Claims (LLMC) can apply to certain claims for wreck removal in Australia, despite Australia choosing to opt out of limiting liability with respect to "the raising, removal, destruction or the rendering harmless of a ship" at the time of becoming a party to the LLMC; ⚫ owners of wrecked ships will now find that wreck removal claims against wrongdoing shipowners can be limited, so long as those claims can also be characterised as "loss of or damage to property" or "consequential loss"; ⚫ claims by public authorities (i.e., "statutory strict liability" claims for the costs of wreck removal) are not limitable; ⚫ the Federal Court’s decision expressly departs from recent Hong Kong authority on the issue. Have a read of our update below. Nathan Cecil Holding Redlich

In parallel with the salvage operations to reopen the Port of Baltimore as quickly as possible will be the much slower but inevitable legal battles between those involved directly and indirectly (and their insurers) in this tragedy. This will shine a light on maritime laws that were put in place when cargo was still being carried in wooden ships such as the: - Limitation of Liability Act of 1851 where the owner of a vessel may limit damage claims to the value of the vessel and cargo if it lacked knowledge of the problem beforehand (https://lnkd.in/eHgKjNug - General Average where all stakeholders in a sea venture proportionately share any losses under certain circumstances (https://lnkd.in/eJFKVcJk). More here from the Wall Street Journal on how this disaster, on top of recent attacks in the Red Sea and an expectation for more frequent and costly disasters in general (growing legal complexities + climate change) may increase reinsurance rates: https://lnkd.in/ewz_AhjA * as this article points out, this act was used to limit liability in the sinking of the Titanic and General Average was declared by Evergreen Marine when the Ever Forward got stuck in the Chesapeake Bay in 2022 as noted here by Bloomberg: https://lnkd.in/esWbswAz [Fairly obvious disclaimer...I'm not a maritime lawyer giving legal advice or predicting a certain outcome so please read the above within that context] #suppplychain #supplychaininsurance #marineinsurance #martimelaw

T3 A big part of managing risk is understanding liability laws. Given the early estimates for infrastructure replacement costs as well as the loss of revenue to both the local communities and so many others, I have to ask, should we look at updating the maritime laws that limit liability? I certainly think it’s a conversation worth having. #riskmanagement #infrastructureupgrades #thesannnordgroup

ICYMI...House Representatives introduced a bill to increase the threshold for the Limitation of Liability Act of 1851 (‘LOLA’). The proposed change would increase the owner's liability limitation from the post-casualty hull value plus pending freight less salvage costs to ten times that amount for foreign-flagged vessels – U.S. flagged vessel’s liability would remain as before.  The proposed change would apply retroactively to March 25, 2024, just before the boxship Dali destroyed the Francis Scott Key Bridge. This bill follows the ’22 Small Passenger Vessel Liability Fairness Act (‘SPVLFA’) following the ’19 Conception dive boat tragedy that claimed 34 souls. This SPVLFA amendment excluded small passenger vessel owners from limiting their liability under the LOLA.  

The owner and operator of the Dali, the cargo ship that struck the Francis Scott Key Bridge in Baltimore, are asking a federal court to limit their liability in the disaster that collapsed the bridge and killed six people. Grace Ocean, the owner of the Singapore-flagged Dali, and Synergy Marine, the manager of the ship, filed a joint petition Monday in the U.S. District Court for the District of Maryland seeking to cap liability at about $43.7 million. The Dali, which was carrying about 4,700 containers, crashed into the Key Bridge in the early morning of March 26. Within moments, the bridge collapsed into the Patapsco River, killing two construction workers; four remain missing and are presumed dead. The petition says the ship left the Port of Baltimore around 12:40 a.m. that day, with two tugs alongside and a pilot on board. After the tugs cast off the ship, the Dali entered the shipping channel around 1:08 a.m. Seven to 10 minutes later, the ship lost power and propulsion before briefly regaining power only to lose it again moments later. The crew dropped anchor after losing power a second time, the petition says. The Dali crashed into the bridge around 1:28 a.m. The companies want to limit their liability to $43.67 million, which is the value of the ship and cargo minus the cost for repairs and salvage, the petition says. The filing is a routine procedure for cases litigated under U.S. maritime law.  The bridge’s collapse and subsequent closure of the Port of Baltimore is expected to have a major negative impact on the global freight industry and the Maryland economy. The port in 2023 handled a record $80 billion of foreign cargo. Officials have vowed to clear the channel as quickly as possible to begin shipping from the port once again. Crews have started removing the bridge wreckage. https://lnkd.in/gYxmcs-Q

Future Perils in Shipping The Tanker " SFL Tucana " on approach to Gore Bay in Sydney Harbour. Governed by complex State, Federal and International Law the cargo shippers and receivers may well be confident all contingencies are covered by their respective insurance arrangements. However in this rapidily changing world the future may well be different to the present. The availability of Marine P&I, Charterers Liability Insurances at reasonable cost may well be in doubt in these uncertain times. It is time to review what you have and develop plans for the unchartered waters ahead.

The Dali, Ever Given and the Law of General Average and Salvage This is a longer article than what I reported earlier in the Maritime Executive. I examine how General Average and Salvage affects parties on board the Dali and the Ever Given in this longer article in Maritime Fairtrade. There are some principles of maritime law that have no equivalent under normal contract law or land or air carriage. Situations like general average and salvage may arise during the maritime adventure and parties involved eg shipowner, cargo owner and charterer will need to be aware as when situations of general average or salvage occur they impact parties and their property. #admiralty #shipping #arbitration #lawpractice https://lnkd.in/gkVfBT3w