New SMA rules for mediation

New SMA rules for mediation

NEW rules for mediation are now available from the Society of Maritime Arbitrators in New York City.

The SMA, in its continuing efforts to be responsive to the needs of the maritime and related industries, believes that select commercial disputes could benefit from the mediation rules. Arbitration, however, is still the preferred method of alternative dispute resolution, and the mediation rules are not intended to replace it.

"The mediation rules are non-binding and may be used in tandem with current SMA arbitration rules," says Lucienne Bulow, SMA president. "These methods of ADR should continue to allow parties to seek resolution of their disputes in a time-efficient and cost-effective way, to their mutual satisfaction."

Port tax row in Brazil

Owners operating to the Brazilian port of Paranagua should be aware of a simmering dispute over the imposition of a reconstituted port utilisation tax. The tax - now called the Inframar tax - has traditionally been paid to the port administration by shippers and/or receivers. But, with effect from January this year, the port authority council decided that the tax should be for the account of shipowners, while the port administration is charging it to ship agents, who themselves are looking to the shippers and/or receivers for payment. Berthing delays are likely until a common agreement has been reached.
(London P&I Club).

Egypt amends cargo laws

EGYPT has amended its laws governing fines and dues in respect of shortage and over-landing of cargo. A ruling of the Egyptian Constitutional Court had earlier ruled that the imposition of fines and dues for shortages and overlanding of cargo was unlawful. With effect from December 1999, however, the right to impose fines and dues was reinstated into law, and the level of penalties was furthermore increased.

Masters or their representatives are required under the new legislation to ensure that the amount of cargo loaded, or the number of packages or their contents, conforms to the cargo manifest through to final delivery. They will be absolved from liability if they are able to prove, within a maximum period of three months, that the reason for the shortage was outside their area of responsibility.
(Eldib Associates).

Turkey revamps pollution fines

New pollution fines were introduced by the maritime authorities in Turkey with effect from January 1 this year. They appear to cover everything from the discharge of dirty ballast water to actual tanker spills. Cash deposits or bank guarantees are required to effect settlement.

New customs law in Venezuela

NEW customs legislation has been enacted in Venezuela, resulting in important changes to the procedures and fines currently being applied.

Congessmen and other government officials claim that the legislation will speed up customs clearance and eliminate smuggling. But the new rules are thought to be heavily weighted in favour of cargo interests, and especially tough on carriers and their agents and port operators, who are directly liable to the national treasury for contravention of them.

BIMCO says draft COGSA revision threatens international trade

"THE United States must honour its position as the word's largest trading nation, to act responsibly and to actively discourage unilateralism in the conduct of international trade." So said BIMCO secretary-general Finn Frandsen in a recent statement to the US senate protesting a draft revision of the US Carriage of Goods by Sea Act (COGSA).

Although BIMCO acknow-ledges that the proposed COGSA revision draft contains a number of improvements, it maintains that certain elements constitute a radical departure from the generally accepted structure of international maritime law. Undoubtedly, notes BIMCO, the most significant negative element is that which limits the right of commercial parties engaged in international maritime trade to contractually agree upon the most appropriate venue and applicable law for the resolution of disputes.

The freedom to choose foreign forums for dispute resolution is important to the international shipping community and to US shipping interests for a number of reasons, says BIMCO. Firstly, if US courts seek sole jurisdiction in all cases involving US interests, US business and industry may suffer negative consequences in the long-term. An estimated two-thirds of US trade is with countries which are signatories to the Hague-Visby Rules, leaving open the possibility that those countries may take protective measures similar to those currently under consideration in the United States, to the detriment of international commerce.

BIMCO argues that the draft COGSA revision jeopardises the international importance of the Hague and Hague-Visby Rules. "In a worst case scenario", concludes Frandsen, "the US initiative could be considered by other nations as a protectionist measure, which may conceivably lead to national or regional-based counter measures."

BIMCO urges the US senate to reject the proposed draft revision of the US COGSA, taking the commercial needs of both the international community and the United States into consideration.