Mexico hosts maritime gathering

Carina Gómez Fröde de Merodio, a Mexico-based lawyer, reports on two days of debate, discussion and dining

THE beautiful Las Hadas hotel, of movie ‘10’ fame, located in the picturesque port of Manzanillo on the Pacific coast of Mexico was the setting for the first US-Mexican seminar on maritime law and arbitration, held on 9-11 March, 2005. Organised by the Mexican Association of Maritime Law and the US-based Society of Maritime Arbitrators, the event was a great success attracting representatives from many different sectors of the maritime industry.

Following a cocktail reception on the opening evening, the working sessions got underway with the topic of maritime security. David A Nourse looked at the preoccupation with possible terrorist attacks explaining various frontier patrol security requirements including corrective administrative measures, shipping inspection requirements and security recognition and certificates.

Ignacio Melo Ruiz followed with the need to rethink traditional legal concepts as a result of the new regulations to prevent illicit actions. He proposed the need to reformulate the concept of sovereignty and questioned the audience on how far a country can control its own security without infringing the internal interests of another.

The second theme of the seminar was maritime insurance. David Martowski, president of the Society of Maritime Arbitrators and former chairman of Thomas Miller (Americas) Inc, set the scene with an overview of issues of particular concern to shipowners and their P&I Clubs – drugs, stowaways and environment and security threats. Martowski used several cases to illustrate costly security ‘false alarms’ and urged those involved in the sector to continue promoting training and education on all aspects of maritime transport and port operations.

Gabriel Corvera gave an interesting overview of maritime insurance in Mexico looking at the types of contract available, policy structures, general and specific conditions, P&I coverage and the international rules and conventions signed and in effect in Mexico related to maritime insurance. The session ended with Betty East and P&I activities in relation to arbitration. East highlighted the need to avoid altering or inventing the clauses of an insurance contract and always being aware of what you are committing to when signing. “Check before fixing,” she advised.

Following lunch, courtesy of port operator SSA Mexico, it was back to business and Marisa Marinelli speaking on the benefits of arbitration. Drawing attention to the wealth of experience of the New York arbitrators, Marinelli stressed that during the arbitration procedure, maritime arbitrators design their own rules and, in contrast to the judicial procedure, the parties involved have the advantage of being able to select the arbitrators.

The afternoon ended with a mock arbitration entitled ‘The Ill-Fated Voyage of MV El Presidente’. Austin Dooley took the audience through the various stages of the arbitration procedure, acted out by the arbitration panel of Manfred Arnold, Svend Hansen, Klaus Mordhorst, Michael Van Gelder, Raymond Burke, Heladio Mejia Pericaz and Joseph Grasso. Audience participation was high as this was the first mock arbitration of its kind held in Mexico.

Bob Gruendel opened proceedings on the second day with a look at LNG, its sourcing, transportation and terminal projects. According to Gruendel, this commodity is strategic not only because it is clean but also because it is abundantly available worldwide, safe to transport and cheap compared to oil. Francisco Kassian went on to talk about the privatisation of Mexico’s ports a decade ago. Although he recognised that volumes at Mexico’s ports are increasing, he put forward various proposals for involving maritime authorities in a more up-to-date vision, the need to simplify administrative procedures and eliminate bureaucracy, rethink the role of the private sector, promote long-term finance schemes, reinforce port law and improve port services.

On the subject of offshore operation and oil transportation, Keith Heard presented a number of cases related to arbitration procedures and the oil industry. Heladio Mejia Pericaz spoke firstly of the uncertain future facing PEMEX following the over-exploitation of natural resources and the need to renew PEMEX’s ageing tanker fleet.

Richard Singleton looked at precautionary measures which exist in the US to ensure security in the field of maritime transport and dealt with the ship arrest procedure including proceedings before the US Coast Guard and federal courts. Looking at the procedures under Mexican law, Miguel Arroyo highlighted Mexico’s excellent Civil Procedures Codes and spoke about how a foreign arbitration award can be executed and enforced in Mexico.

Juan Carlos Merodio-Lopez, who had a leading role in the organisation of the seminar, brought proceedings to a close thanking everyone who attended and urging the Mexican government to incorporate public policies for the development of the Mexican Merchant Marine in parallel with the important increase in the country’s international trade and port development.