Despite it being almost six years since the 2014 oil price crash, there appears to still be only limited appetite for new investments in the offshore space, with many offshore investors and other stakeholders appearing to be keeping their powder dry until more obvious signs of an upturn are visible on the horizon. This article examines the current situation and some of the contracting solutions in the offshore markets.
The UK Supreme Court's recent landmark decision in the Renos case clarifies that when determining whether a vessel is a constructive total loss under the English Institute Time Clauses Hulls conditions, regard should be had to the costs incurred prior to the owner's notice of abandonment, but not to remuneration payable under a special compensation protection and indemnity clause. But what would the position be under the 2019 version of the Nordic Marine Insurance Plan 2013?
The International Chamber of Commerce is set to launch a new version of the Incoterms rules – the globally used, standardised set of trade terms for the international sale and delivery of goods. Although the new rules will not take effect until 1 January 2020, parties involved in the international sale and delivery of goods should use the impending introduction of the new rules as an opportunity to review their existing contracts and standard delivery terms and determine whether they are being used correctly.
Using liquefied natural gas (LNG) rather than fuel oil is one of a range of options available to owners seeking to comply with the International Maritime Organisation's 2020 regulations. Given that shipbrokers have long predicted the emergence of a two-tier shipping market with 'greener' ships commanding a premium over older, less eco-friendly vessels, what is the future for LNG bunkering and what challenges does it present?
Most parties involved in the shipping industry will by now have a clear picture of the requirements under the International Maritime Organisation (IMO) 2020 global sulphur cap on marine fuels. Therefore, attention has turned to the steps that must be taken to put these requirements into practice. Two clauses recently introduced by the Baltic and International Maritime Council aim to address certain contractual aspects of the IMO requirements as they apply to time charterparties.
Third-party ship managers are often required to issue letters of undertaking to financiers of a managed vessel on relatively unfavourable and financier-friendly terms. The Baltic and International Maritime Council's new standard ship manager's letter of undertaking, which was recently published, seeks to redress the balance and gives ship managers a more equitable set of terms, which may be used as a starting point for negotiations.
Quiet enjoyment letters are often used where a ship, rig or other unit being financed is subject to a long-term charterparty to govern the interrelationship between the owner, its financiers and the charterer. They provide the charterer with a right to the undisturbed use and enjoyment of the ship, independent of whether the owner in its capacity as borrower is in default of its obligations towards its lender under the loan agreement. But do quiet enjoyment letters have any benefit for lenders?
International conventions and local regulations combine to create a complex legal regime, which is often overlooked. The sale of a ship or rig to an intermediate buyer, which then sells the asset on to a shipbreaking facility, will not necessarily insulate the original owner from future liability or reputational damage. This article addresses a number of frequently asked questions which owners and other parties involved in transboundary movements of marine assets for recycling may find helpful.
The Baltic and International Maritime Council recently published two new clauses which require time charterparties to reduce sulphur emissions. The clauses regulate the effects of Annex VI of the International Convention for the Prevention of Pollution from Ships, which stipulates that, from 1 January 2020, vessels will be able to consume only fuel with a sulphur content less than or equal to 0.5%.
Fishing remains one of the most dangerous occupations in the world. According to International Labour Organisation statistics, at least 24,000 people die and 24 million are injured each year on commercial fishing vessels. The International Union of Maritime Insurers 2018 Conference, which was recently held in Cape Town, provided a platform for discussing some of the issues and challenges currently facing the international marine insurance market.
The Comite Maritime International (CMI) has been aware that there are challenges relating to the international recognition of judicial sales of ships. As such, the CMI approached the United Nations Committee on Trade Law in order to encourage it to embark on future work on cross-border issues relating to judicial sales. The committee, on its part, encouraged the CMI to hold a colloquium to provide additional information to the commission. This colloquium was recently held in Malta.