LIABILITY OF CARRIERS OF PASSENGERS BY SEA
PARLIAMENTARY REPORT ON DRAFT PROPOSAL FOR A REGULATION ON THE LIABILITY OF CARRIERS OF PASSENGERS BY SEA AND INLAND WATERWAYS IN THE EVENT OF ACCIDENTS BY PAOLO COSTA
Donald Chard
Legal & Documentary Department
The Commission’s Proposal on the liability of carriers of passengers by sea and inland waterways has a potential for achieving a uniform, harmonised liability regime within the EU. The Chamber of Shipping also supports the European Parliament’s approach taken during both 1st and 2nd readings of the Draft Regulation, where compensation above the limits in the Athens Convention can be applied only with the agreement of all Member States.
In particular, the Chamber of Shipping strongly supports the position taken by the Rapporteur Paolo Costa in his 2nd reading report, aiming at re-instating the Commission’s and the Parliament’s position on disapplication of the Opt-out clause.
Opt-out clause
A key element to achieve harmonisation throughout the EU was a proposal from the Commission (in Article 4 § 1 of the draft Regulation) to disapply Article 7 § 2 of the Athens Convention 2002 which permits States-parties to the Convention to set compensation levels in excess of the figure laid down in Article 7 § 1. Article 7 § 1 would be applied only if all EU Member States agreed to increase compensation levels. This Commission’s proposal was fully supported by the European Parliament (EP) in first reading.
Regrettably, this uniformity has now been challenged by the Council’s Common Position. The wording agreed by the Council allows any Member State to raise compensation levels unilaterally above those laid down in the Athens Convention, which defeats the goal of establishing a uniform liability scheme.
The Chamber of Shipping has strong reservations about the Council’s position as it is not only in conflict with the fundamental objectives of the proposed Regulation but it also undermines the added value for having this Regulation. Adoption of the Council’s Common Position is likely to result in differing regimes within the EU. As an unfortunate consequence, this could well lead to forum shopping.
For more information please contact Anastasia Frisk at anastasia.frisk@british-shipping.org
The UK Chamber of Shipping is the trade association for the UK shipping industry, working to promote the interests of its members both nationally and internationally. With 139 members and associate members, the Chamber represents over 932 ships of about 25 million gross tons. It is recognised as the voice of the UK shipping industry. For more information about the Chamber of Shipping please go to home page at: www.british-shipping.org