Shipping law insights archive

Legal and market updates from our maritime lawyers around the world

Global | Publication | September 2019

2020

Using vessels as floating storage for crude oil: A risky business

The oil market has seen a dramatic fall in prices due to an excess supply and a substantial decrease in demand due to, amongst other things, the coronavirus.

2019

Exploring new shores: Transporting LNG from Canada by ship

At least eighteen LNG export facilities have been proposed in Canada to date.

The Adrian Darya 1 and beyond

For the past several months, the sanctions spotlight has seemingly been turned directly on the international shipping industry.

Changes to the UK Ship Register: widened eligibility and bareboating out

Since March 29, 2019, the UK Registry of Shipping and Seamen (the UK Registry) has expanded eligibility for the UK flag in order to accept a wider category of shipowners

Defective vessel passage plans: When failing to plan is planning to fail

In an important judgment1 for cargo owners and their marine insurers, the English courts have considered how a defective passage plan can result in a vessel being considered unseaworthy and when this may allow cargo interests to defend a shipowner’s claims for general average contributions.

LIBOR discontinuation: Is the shipping finance industry ready?

LIBOR will be discontinued after 2021. We examine how the ship finance market is preparing for this major change.

Stallion Eight Shipping Co. S.A. v Natwest Markets Plc – reaffirming creditors’ right to secure claims via ship arrest

It is a feature of the shipping industry that creditors with a maritime claim can, relatively easily, secure their claims by arresting a ship.

Trends in cyber-attacks in the shipping industry - Video

Shipping industry gearing up to face the cyber risk along with forthcoming legal and regulatory changes around cyber that will affect the industry.

The narrow channel rule and the crossing rule collide

Who is liable when collision regulations appear to be in conflict? We consider the implications of the English Court of Appeal case Evergreen Marine v Nautical Challenge.

Arbitrating disputes under shipbuilding contracts – the importance of timing

How can buyers get the timing right when launching proceedings, particularly for shipbuilding projects involving Chinese refund guarantees?

Preparing for IMO 2020 - webinar series

Assisting shipowners, charterers and ship financiers in preparing for the implementation of the regulations, known as IMO 2020.

Navigating shipping disputes - Video

Marie Kelly, shipping disputes partner, discusses with associate Jack Longden when equitable set off can be validly used to deduct cross claims under charterparties, in the first of our Navigating shipping disputes series.

Wrecked, Abandoned or Hazardous Vessels Act

What do insurers and risk managers need to know?

Managing IMO 2020

The Importance of engagement between bunker suppliers and consumers

IMO 2020 – are we ready

The maritime industry is bracing itself for the rapid approach of January 1, 2020 – the day on which the sulphur limit imposed under comes into effect.

Narcotics on ships

Empirical evidence suggests the number of incidents and the quantity of drugs found on board ships are on the rise

Service of notice in arbitration

In this video Marie Kelly discusses the steps claimants can take to ensure valid service of notices in arbitration.

Sustainable/green financing in the shipping and offshore sectors

The tide is certainly turning.

2018

Financing scrubbers potential solutions

Shipowners are increasingly exploring how they can finance the retrofitting of scrubbers on their ships in preparation for the 0.5 per cent cap on sulphur content in shipping fuel coming into force on January 1, 2020. We look at some of the potential financing solutions and their related issues.

Piercing the corporate veil in US admiralty proceedings

In this video, we examine recent changes in the US courts and how they affect maritime creditors seeking to pierce the corporate veil in order to obtain security for their claim.

High and dry legalization of cannabis in Canada and the impact on shipping

What does the enactment of the Cannabis Act in Canada mean for seafarers and shipowners, and their obligation to ensure the safety of ships, crew, cargo and the marine environment?

Put to the test

On October 12, 2018, the Commercial Court determined that defendant underwriters were liable to pay an insurance claim under a marine cargo insurance policy, as doing so was not prohibited under EU or US sanctions against Iran. It was not prohibited, provided that payment was made prior to the re-imposition of US sanctions upon the payment of insurance claims, on November 5, 2018.

A clash of two worlds

Letters of quiet enjoyment (LQEs) have long been a feature of ship financings where the ships being financed are subject to long-term charterparties.

LNG construction arbitration

LNG comprises approximately 9.8 per cent of the world’s energy supply.

Attempted smuggling and the meaning of malicious acts

In August 2007, the bulk carrier B Atlantic was used in an unsuccessful attempt to export from Venezuela three bags of cocaine weighing 132 kilograms which had been strapped ten metres below the waterline to the ship’s hull.

Timeline for the implementation of new environmental regulations

Timeline for the implementation

Modern Slavery and Human Trafficking reporting: the risks of modern slavery in maritime supply chains

According to the International Labour Organisation (ILO), at any given time an estimated 40.3 million people globally are in modern slavery, which includes 24.9 million in forced labour.

Seatrade: a new approach to violations of regulations on ship recycling in the European Union?

By the end of this year, a new European Union regulation will take effect to prevent owners of EU flagged ships from recycling ships in yards which have not been approved by the EU Commission.

General Data Protection Regulation checklist – impact on shipping

The EU General Data Protection Regulation (GDPR) will apply directly in all EU Member States from 25 May 2018.

Trends in cyber-attacks in the shipping industry

We have been advising clients on a broad range of sophisticated cyber incidents recently, including in the shipping industry and a lot of our clients are asking us, firstly how the shipping industry is gearing up to face the cyber risk and also what are the forthcoming legal and regulatory changes around cyber that will affect the industry.

Shipbuilding contracts and the threat of war

We are now, unfortunately, living in a time of heightened geopolitical tension in several regions around the world.

House v Ocean – the complexities of bills of lading

Although bills of lading have existed for centuries, occasionally the basics can still become confused.

Subrogation claims: fighting in the middle

As a result of the ever increasing volumes of goods and commodities traded and transported around the globe, it is not uncommon that insurers find themselves dealing with subrogated claims impacted by more than one legal system. South Africa and China are a good example of this.

2017

Reversed - Validity of foreign ship mortgages upheld by the SCJ

On 16 November 2017, Brazil’s Superior Court of Justice (SCJ) handed down its judgment on the long running case involving the FPSO OSX3 (the OSX3 Unit).

Mandatory liability insurance for Canadian commercial ships

Canada will soon require domestically operated commercial ships which have “passengers” on board to carry mandatory liability insurance to respond to passengers’ claims for injury or death.

Trends in ship finance

The way ships are financed has changed considerably in the past ten years, and the market has continued to evolve throughout 2017.

Trends in shipping case law

Two noteworthy shipping cases heard during 2017 have placed contractual interpretation under the spotlight.

Singapore – the new jurisdiction of choice for cross-border restructuring?

Recent changes to Singapore’s restructuring and insolvency law framework mean that the international insolvency landscape has shifted dramatically, opening up further options and possibilities for Singapore-incorporated and foreign debtors seeking to restructure their indebtedness. in particular, the changes to the Singapore Companies Act (Cap. 50) (the Companies Act) (which, in part, incorporate into Singapore law certain features of Chapter 11 of the United States Bankruptcy Code), which came into force on 23 May 2017, have enhanced Singapore’s restructuring and insolvency law framework and improve significantly its potential to become a restructuring hub.

UK Bribery Act 2010 – where are we now?

When considering the risks of corrupt activity taking place on a ship, it is important for shipowners, managers and charterers to understand the very great pressure that can be put on the ship’s master to pay small sums to allow the day to day business of the ship to continue unimpeded.

Shipbuilding contracts: How to preserve refund guarantees and the use of anti-avoidance clauses

In the current economic climate, with a number of shipbuilders in serious financial trouble, shipbuilding contracts are often amended.

The dangers of fires at sea: Damage to containerised cargo

Fires at sea pose an immense risk to life and property and are a major headache for shipowners, carriers, P&I Clubs and cargo interests and their insurers.

Star Polaris – consequential loss in shipbuilding disputes

An English High Court ruling has examined the meaning of consequential loss in relation to a shipbuilding dispute that will likely have important implications for the interpretation of limitation of liability clauses in a variety of contracts subject to English law.

Current status over the recognition of registered ship mortgages in Brazil

In a briefing published in March 2016, we considered the impact of a judgment handed down by an Appeals Court in Brazil on those involved in secured lending transactions for offshore oil and gas assets and ships which are present, even on an occasional basis, in Brazil’s maritime economic zone.

Dealing with problem loans

Continued difficulties in the shipping market have shone a spotlight on the precarious finances of many shipowners.

Salvage in China – apportioning the cost of salvage between shipowners and cargo interests

The recent decision of the Chinese Supreme People’s (SCP) Court in MV Archangelos Gabriel1 has brought the issue on who is liable to salvors for salvage fees in a pre-fixed tariff rates salvage contract to the fore.

Electronic contracting: commodities market players driving changes in shipping as technology advances

2016’s surprise uptick in commodity prices confounded the majority of market analysts and commentators.

Buying and selling shipping loan portfolios

The withdrawal of major shipping banks from maritime industries has been a feature of the market for a number of years.

The Cape Bari decision: Shipowners’ right to limit liability under international and US law

The right to limit liability has long been considered by shipowners to be a central tenet in their risk management considerations.

Timeline for the implementation of new environmental regulations

2016

Can public price announcements be an invitation to collude? The EU’s liner shipping investigation

On July 7, 2016, the European Commission (the Commission) closed its long-running investigation into potential anticompetitive practices in the container liner shipping sector after the companies under investigation offered to enter into binding commitments with the Commission regarding their future conduct.

Seaworthiness redefined in the new age? Interim guidelines on maritime cyber risk management

Interim guidelines for addressing cyber related risks in the shipping industry have been approved by the International Maritime Organisation (IMO).

Weathering the offshore oil and gas downturn in South East Asia

The well documented and protracted down cycle in the offshore oil and gas sector has yet to precipitate the wave of restructuring and insolvencies amongst South East Asian sector companies that many have predicted.

Trends in capital market financing for the shipping industry

Capital markets financings have gained traction with the shipping industry in recent years.

New measures on global tax avoidance – what the shipping industry should watch out for

In recent years there have been a series of catalysts, provoking a raft of new domestic and international law geared at countering perceived tax avoidance.

The fallout from Res Cogitans and expected changes to bunker supply contracts

The recent English Supreme Court judgment in the Res Cogitans case, in effect a test case arising from the financial collapse and insolvency of OW Bunker & Trading A/S and its associated companies (OWB), has set the tone for dozens of pending claims on the international scene, with decisions largely coming down in favour of OWB receiving payment from the buyer.

On the waterfront: restructuring international shipping companies

The past eight years have seen unprecedented levels of distress in the shipping industry, with weak demand leading to depressed and unpredictable charter and freight rates and overcapacity in international shipping markets.

OW Bunker – Fact and fiction

The Supreme Court, in London, has recently issued its judgment in the Res Cogitans case which was, in effect, a test case arising from the financial collapse and insolvency of OW Bunker & Trading A/S and its associated companies (OWB).

Rotterdam rules - Ratification status in the US and effectiveness of choosing to apply them voluntarily

The Rotterdam Rules, or the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, is the latest international convention intended to harmonize rules governing international contracts for transportation of goods by sea.

Landmark admiralty judgment “STX Mumbai” establishes another legal weapon for suppliers of goods and services

A significant shipping case The STX Mumbai [2015] SGCA 35, has considered two novel points of law related to the doctrine of anticipatory breach of contract.

New container weight rules – how should carriers and shippers prepare?

Safety at sea depends upon a myriad of factors, including the safe loading of cargo. In order to ensure that the loading of cargo does not put a ship at unnecessary risk, the International Maritime Organisation (IMO) has adopted obligatory amendments to the Safety Of Life At Sea Convention’s (SOLAS) Guidelines on the Verified Gross Mass of a Container Carrying Cargo (the Guidelines).

Impact of Brexit on the transport sector

Aviation: the ability of UK airlines to operate to and within the European Union
Arguably the UK’s access to the European Single Aviation Market has been a key factor in the rise of low-cost carriers (LCCs) over the last twenty years.

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