Malta prompts liability leap

Malta prompts liability leap

THE level of compensation for maritime claims for loss of life or personal injury, and property claims, is set to increase substantially in May this year following the accession of Malta to the 1996 Protocol to the 1976 Convention on Limitation of Liability for Maritime Claims. Malta is the tenth state to accede to the protocol, triggering its entry into force on May 13, 2004.

The 1996 protocol significantly increases the amount of compensation payable in the event of an incident, and also introduces a ‘tacit acceptance’ procedure for updating these amounts. This means that, in future, amounts can be raised with a given date for entry into force, after consideration and adoption by the IMO Legal Committee, providing a specified number of objections are not received. This should ensure that, if the need arises, amounts can be increased without undue delay.

Competition hots up for shipbrokers

Shipbrokers are urged to take note of new Norwegian Competition Law due to come into force this May

SWEEPING changes in competition law across Norway and the EU could have serious consequences for shipowners and shipbrokers alike, warns Oslo-based law firm Wikborg Rein.

Developments in competition law mean both a stricter regime and harsher penalties, says Wikborg Rein partner Trond Eilertsen. Traditionally, the competition law regime has been viewed as an issue for owners. But, under the new regime, brokers must not only avoid engaging in cartel practices themselves, but must also ensure they do not act as middlemen in cartel agreements between shipowners. “Since the broker plays a key role in regard to the various contracts of carriage between owners and cargo interests, ignorance of the potential liabilities can have serious consequences,” warns Eilertsen.

Further changes to the law mean that it will no longer be possible to ask Norwegian competition authorities for approval of individual agreements. As a result, a working knowledge of the restrictions imposed by competition law is increasingly important. “As the line between illegal co-operation and intelligent market behaviour is not always easy to discern, the advice of professionals should be sought to resolve any questions prior to entering agreements,” Eilertsen says.

Safety as mandatory

UNIFORM, global rules for the safe transport by sea of dangerous goods and marine pollutants in packaged form are now compulsory following the entry into force on January 1, 2004 of the 2002 amendments to SOLAS 1974, making the IMDG Code mandatory.

“The IMDG (International Maritime Dangerous Goods) Code is a key IMO instrument which is crucial for the secure multimodal transport of dangerous goods,” says IMO secretary-general, Efthimios Mitropoulos.
“The code’s detailed technical requirements are now globally enforceable by maritime administrations worldwide, and this should ensure that ships carrying substances covered by the code do so safely and reliably, and without polluting the oceans.”

Under other amendments to SOLAS (International Convention for the Safety of Life at Sea), which entered into force on January 1, 2004, ships are now also required to carry an up-to-date copy of Volume III of the International Aeronautical and Maritime Search and Rescue (IAMSAR) Manual, and a listening watch on VHF Channel 16 for distress and safety purposes should continue until 2005.

Alien clampdown

A NEW international convention to prevent the potentially devastating effects of the spread of harmful aquatic organisms by ships’ ballast water has been adopted by the International Maritime Organisation (IMO). The convention will require all ships to implement a Ballast Water and Sediments Management Plan. All ships will also have to carry a Ballast Water Record Book and will be required to carry out ballast water management procedures to a given standard. Existing ships will be required to do the same, but after a phase-in period.

The convention will enter into force twelve months after ratification by thirty states representing 35 per cent of world merchant shipping tonnage. Efthimios Mitropoulos, secretary-general of IMO, emphasised the importance of early, wide and effective implementation of the new convention and pledged the support of IMO’s Integrated Technical Co-operation Programme to help those countries who need assistance.