A recent Sao Paulo State Appellate Court case concerned a carriage of goods by sea from Port Everglades (United States) to the port of Rio de Janeiro (Brazil). The court's decision sets an important precedent in recognising that subrogation cannot be used to reinstate a right that no longer applies where a rights holder fails to observe a legal requirement. Therefore, subrogated insurers assume the same rights and limitations as assureds.
Bills of lading generally contain a provision that limits carriers' liability to a certain extent if goods are lost or damaged or other claims arise. Such limitation provisions can be used when a merchant fails to declare the cargo's value (which is often the case). A court recently confirmed that if a contracting party can declare its cargo's value in its bill of lading but chooses not to, the limitation of liability clause provided therein can be applied.
The Brazilian courts recently confirmed that unpaid debts for bunkers supplied to vessels are considered claims with a privileged nature under Brazilian law and thereby permit creditors to obtain security for any debts by arresting vessels in Brazilian ports. This case is one of the first precedents dealing with the application of the Liens Convention 1926 and grants legal safety for bunker suppliers and all other parties that hold credits of a privileged nature under Brazilian law.
In 2016 the International Maritime Organisation approved a reduction of the maximum amount of sulphur that can be contained in ships' fuel oil by January 2020. The National Agency of Petroleum, Natural Gas and Biofuels recently initiated a public hearing to obtain feedback on its proposal to amend Resolution 52/2010 in order to comply with the new requirements. Some parties expressed concerns about the changes, mainly due to the increase in costs in an already difficult economic environment.
Two members of Parliament recently presented a draft law that would mandate the installation of additional passive safety equipment for new boat engines and factory outlets. The draft law builds on previous legislation which sought to reduce the large number of serious accidents between vessels and the North Region's riverside inhabitants. Legislators await a congressional order to define the committees that will analyse the draft law and its procedural arrangements.