Legal and documentary
The Chamber monitors, comments and develops policies on the complex web of legal and contractual provisions surrounding shipowning, operating and the carriage of cargo.
International Maritime Law
This derives from the United Nations Convention on the Law of the Sea (UNCLOS). This is a comprehensive UN Convention laying down framework rules for states to determine areas of territorial sea, adjacent areas known as the Exclusive Economic Zone and the high seas. It lays down rights for vessels to trade lawfully and without hindrance. The Convention also deals with exploitation of the oceans and protection of the marine environment including fishing and mining.
The International nature of shipping argues for the development of legal provisions suitable for worldwide application. The Chamber therefore contributes through government and international shipowner organisations in the formulation of specialist IMO Conventions setting out shipowner obligations to third parties in relation to compensation for oil spills; bunker (ie ships’ fuel) spills; chemical incidents; passenger-related accidents; removal of wrecks and general rights of limitation in the event of collision or damage to dock and harbour installations. IMO Conventions are open for acceptance by all countries. The Chamber is actively supporting an industry campaign through ICS to encourage states to sign up to all IMO instruments to bring those not yet in force into effect and broaden the application of those that are.
At European level, the Chamber follows developments initiated by the Commission for directives and regulations. In recent years, a number of liability-related proposals have come forward which, while seeking to give effect to internationally agreed arrangements, sometimes go further. This raises the prospect of conflict between regional requirements and international provisions. Similar action in other parts of the world will undermine international uniformity.
Documentary
Arrangements for the carriage of goods by sea are largely a matter of individual negotiation. However, longstanding international provisions regulate certain minimum conditions on liability and compensation under bills of lading. The most widely accepted provisions today are the Hague Visby Rules, agreed in 1968, which are applied by many of the world’s trading nations. Up-to-date provisions reflecting advances over the years in trade practices and technology, were agreed in 2008 by the United Nations Commission on International Trade Law (UNCITRAL). The Chamber is pressing for the early and widespread application of the resulting convention, to be known as the Rotterdam Rules.
The basis of contractual arrangements for the use of ships and transport of cargoes is facilitated through the provision of standard forms. The Chamber contributes to the development of a range of documents, particularly charterparties, bills of lading and specialist contracts, which can be tailored to meet individual requirements.
Other issues
Advice is provided on shipping legislation, marine insurance and liability insurance, general average and dispute resolution arrangements, including arbitration.
Working with others
In order to develop policies and promote its views in this area, the Chamber works with ICS, ECSA, BIMCO, the International Group of P&I Clubs, MEPs, the British Maritime Law Association, the Comité Maritime International (CMI), IMO and UNCITRAL.
Competition Policy
Destructive competition between shipping lines in the 19th century frequently put companies out of business to the detriment of shippers. Lines therefore came together to ensure that regular and reliable services could be maintained with all agreeing to charge the same freight rates for the same commodities. The result, known as the Conference system, has been upheld over the years in all major jurisdictions subject to strict regulatory supervision to ensure a fair and workable balance.
However, from October 2008, Conferences ceased to be lawful in European trades although this does not affect their continued operation in other major trading areas including Australia, Canada, Japan and the USA. .Changes have also been made to supervisory arrangements in non-liner “tramp” trades where it remains to be seen how the European Commission will exercise new regulatory powers.
The Chamber monitors, and as appropriate comments on, competition policy developments.