New tank charter party

New tank charter party

BP AMOCO Shipping and BIMCO have developed a new standard tank time charter party, code named BPTIME3. "We wanted to draw up a charter party that is easy to read, easy to use and reflects the interests of both parties," says Adrian McMahon, BP Amoco Shipping's manager of chartering and operations. "We felt that in order to ensure that the right balance was struck it was important to bring the shipowners into the process, and we therefore took the unusual step of approaching BIMCO."

BIMCO and BP Amoco Shipping have worked hard to ensure that the new form not only meets the stringent expectations of the industry, but will also conform to the high standards required by all documents which gain BIMCO's stamp of approval. Particular attention has been paid to the often contentious issues of cancellation, speed and performance, delivery/redelivery, and dispute resolution.

"BP Amoco Shipping's approach to drafting the document was to take an innovative approach to the process - to simplify rather than expand, to reduce the number of clauses rather than increase them, to increase the font rather than decrease it. We feel this makes for a better and clearer contract," says Katherine Støvring, legal advisor to BP Amoco Shipping.

Honk Kong enacts electronic transactions ordinance

THE Hong Kong government has brought into law an Electronic Transactions Ordinance to provide legal recognition of electronic records and digital signatures and to facilitate and promote the operation of Certification Authorities (CAs) in order to provide a secure environment for the conduct of electronic transactions.

Businesses in the transport chain operating electronically face a bewildering legal landscape, but the main issues in practice include the formation and validity of contracts, their governing law and jurisdiction, and fraud.

The legislation provides for the validity of electronic contracts. Unless otherwise agreed by the parties, an offer and the acceptance of an offer may be expressed by means of electronic records. Rules are set out to establish when and where a record is sent and received, subject to agreement otherwise by the parties. This is important to issues of governing law and jurisdiction.

The second part of the ordinance sets up the regime for the recognition of certification authorities to issue digital certificates. The Postmaster General is the first recognised certification authority. Suitable applicants may also apply to become recognised certification authorities.

A digital signature under the ordinance must be supported by a recognised certificate and must be generated within the validity of that certificate. The ordinance adopts the PKI encryption system. The role of certification authorities will be to ensure that electronic records are authentic and have not been altered during the process of transmission. (TT Talk, the electronic newsletter of the TT Club).

New oil pollution law in Alaska

THE State of Alaska has introduced a new law regarding oil pollution from non-tank vessels, reports The London Club. Under the new Financial Responsibility Act, non-tank self-propelled vessels operating in Alaskan waters and exceeding 400gt must demonstrate proof of financial responsibility for oil spills occurring in Alaskan waters. The effective date of the new Act is 1 September, 2000.

Proof of responsibility must be established for non-tank vessels operating in Alaskan waters in the following amounts:

• For vessels carrying predominantly persistent product, $300 per incident for each barrel of oil storage capacity, or $5,000,000, whichever is greater.
• For vessels carrying predominantly non-persistent product, $100 per incident for each barrel for oil storage capacity, or $1,000,000, whichever is greater.

The Act applies to non-tank vessels over 400gt which be definition covers self-propelled vessels including commercial fishing vessels, passenger and cargo vessels. Barges are excluded, as are public vessels unless 'engaged in commerce'.

The Alaska Department of Environmental Conservation (ADEC) has proposed draft regulations to implement the financial responsibility requirements. ADEC predicts that its regulations will not become final until September or early October 2000 but the effective date of the new law remains 1 September 2000.