Nautical Science Law Assignment

Law Assignment

Phase 7


1.0 Introduction 3
  2. Carriers Liability 3
      To Cargo Owners
  3. Insurance 7
      H&M / P&I
  4. Salvage Contracts & 9
      Port Of Refuge
5.0 Conclusion 10

Bibliography 11

1.0 Introduction

The following assignment will take the scenario given of a collision between a bulk carrier and a container vessel in the Malacca Straights.   The author will aim to explain the carriers liabilities in both the time charter and voyage charter cases and discuss whether exemptions are able to be invoked as stated in the Hague-Visby Rules.
Insurance claims will be discusses under both Hull & Machinery, and Protection & Indemnity insurance, whilst the acts of General average and Salvage and if they would be covered by the vessels insurance analysed. Finally, an explanation will be given as to why the two vessels engaged into different contracts for their salvage and the procedures for port entry into a refuge port identified.

2.0 Carriers Liabilities to Cargo Receivers

In the case of the Bulk Carrier, the status is that the vessel is on a 6 month time charter.   Hill (1995 pg186) has defined a time charter as when “…the ship owner agrees that the named vessel in the document, including her Master and Crew, shall be placed at the disposal of the charterer for his use and employment over a defined period of time.”
When it dealing with the carriage goods by sea, the Hague-Visby rules apply which are effected in the UK by the ‘Goods By Sea Act 1971’.   These rules came about to “…establish regimes of liability as between shipper and carrier in the carriage of goods by sea.”. (Grime 1991. pg 7).

Article 1(a) of the Hague-Visby rules states that the Carrier is the owner or charterer who enters into a contract of carriage with the shipper.   Article 1(b) goes onto state that the Contract of carriage applies to contracts of...