S H I P P I N G L AW H A N D B O O K FIFTH EDITION MICHAEL BUNDOCK Marine and International Trade Group, Stephenson Harwood LONDON 2011 Informa Law Mortimer House 37–41 Mortimer St London W1T 3JH [email protected] An Informa business © Michael Bundock, 1999, 2000, 2003, 2007 © Informa UK Ltd, 2011 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 978–1–84311–946–3 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Informa Law. Whilst every effort has been made to ensure that the information contained in this publication is correct neither the author nor Informa Law can accept any responsibility for any errors or omissions or for any consequences arising therefrom. Text set in 10 on 12pt Times by Interactive Sciences Ltd, Gloucester Printed in Great Britain by MPG Books Ltd, Bodmin, Cornwall Acknowledgments We gratefully acknowledge the assistance of the following organisations, and, where rele- vant, their kind permission to reproduce their copyright material: The Association of Ship Brokers and Agents (ASBA), New York, US; The Baltic and International Maritime Council (BIMCO), Copenhagen, Denmark; BP plc, London, UK; The British Tugowners’ Association, London, UK; The Comite´ Maritime Inter- national; The Federal Department of Foreign Affairs, Switzerland; Federal Public Service Foreign Affairs, Belgium; The International Association of Independent Tanker Owners (INTERTANKO); The International Group of P&I Clubs; The International Maritime Organization, London, UK; The International Salvage Union, London, UK; The International Underwriting Association of London; The Salvage Arbitration Branch, Lloyd’s of London, London, UK; The London Maritime Arbitrators Associa- tion (LMAA), London, UK; The Maritime and Coastguard Agency, Southampton, UK; The Norwegian Shipbrokers’ Association, Oslo, Norway; Shell International Shipping and Trading Company Ltd, London, UK; The United Nations, UNCTAD and UNCITRAL; Witherby & Co. Ltd, London, UK. iii Preface The practice of shipping law requires access to a large number of source materials. The library of a specialist law firm will contain comprehensive collections of the relevant statutes, statutory instruments, international Conventions, and standard shipping documents. The object of this publication is to gather together those materials to which reference is most frequently made. It is hoped that it will prove useful both to those who do not have access to a library and also to those who do but would nonetheless value the convenience of a collection which may be kept readily to hand. I have had in mind primarily the needs of those who are engaged in the contentious aspects of shipping law. These, of course, are not limited to matters relevant only to shipping disputes. Materials have therefore been included which are of wider application, such as the Arbitration Act 1996. The principal source not included is case law, the volume and variety of which prohibit the making of a selection which would be useful to practitioners. Materials relating to non-contentious matters, such as ship registration, are not included. International Conventions are an important source of maritime law, and are numerous. The criterion for inclusion in this book is not whether the UK is a party to the relevant Convention, but whether the text is frequently referred to by practitioners. For example, the Limitation Conventions of 1957 and 1976 are both included, although the UK is no longer a party to the former. Where the Convention is set out in an Act of Parliament, that is the text included here, any variations from the original Convention text being noted in the relevant introduction. For example, the Limitation Convention of 1976 is reproduced in Part I of Schedule 7 to the Merchant Shipping Act 1995. In all other cases, the text is that of the Convention itself. Certain materials exist in several variants, the principal example being the Hague Rules. Some countries have adopted the original Rules, whilst others have given effect to the Visby amendments and, in some cases, the SDR Protocol. Others have passed legislation closely based on the Rules (such as the Carriage of Goods by Sea Act 1936 of the United States). Because of their importance, both the Hague Rules and the Hague-Visby Rules are printed in full; the latter are set out in the Schedule to the Carriage of Goods by Sea Act 1971. As this version includes the SDR Protocol amendments, the unamended text appears in the note to Article IV(5), for ease of reference. The US Carriage of Goods by Sea Act 1936 is also set out in full; it is sometimes incorporated into bills of lading or charterparties and differs in certain respects (particularly limitation of liability) from the Hague Rules. Since it is often necessary to know whether a particular State gives effect to a Convention, iv PREFACE the parties to the Conventions are listed. Much more detailed information is available in The Ratification of Maritime Conventions, produced by the Institute of Maritime Law and published by Informa. A number of standard forms are included. Forms which are primarily connected with a particular area appear in the appropriate Part: Lloyd’s Open Form, for example, appears in Part H (Salvage, Towage and General Average). More general forms, such as charterpar- ties, are set out in Part I. I am grateful to all those members of the shipping community who were consulted about the selection of materials for this publication. In particular, I should like to thank my colleagues at Stephenson Harwood for their comments and suggestions. MICHAEL BUNDOCK Stephenson Harwood January 2011 v Outline Contents Acknowledgments Preface Detailed Contents Alphabetical Table of Legislation and International Conventions and Rules Alphabetical Table of Forms PART A: ARREST, JURISDICTION AND APPLICABLE LAW PART B: ARBITRATION PART C: LIMITATION OF LIABILITY PART D: CARGO CLAIMS PART E: COLLISION PART F: MARINE INSURANCE PART G: OIL POLLUTION PART H: SALVAGE, TOWAGE AND GENERAL AVERAGE PART I: STANDARD FORMS Index vi Detailed Contents Page Acknowledgments iii Preface iv Outline Contents vi Alphabetical Table of Legislation and International Conventions and Rules xi Alphabetical Table of Forms xiii PART A: ARREST, JURISDICTION AND APPLICABLE LAW A.1 Introduction 1 A.2 International Convention for the Unification of Certain Rules Relating to the Arrest of Sea-going Ships, Brussels, 10 May 1952 4 A.3 Parties to the Brussels Arrest Convention 1952 8 A.4 International Convention on Certain Rules Concerning Civil Jurisdiction in Matters of Collision, Brussels, 10 May 1952 9 A.5 Parties to the Brussels Collision Convention 1952 12 A.6 Senior Courts Act 1981, ss 19–24, 27, 150 13 A.7 Civil Jurisdiction and Judgments Act 1982, ss 1–3B, 9, 15, 24–26, 31–34, 39, 41–46, 49–52, 55 18 A.8 Civil Jurisdiction and Judgments Act 1982 (Interim Relief) Order 1997, SI 1997 No 302 31 A.9 Civil Jurisdiction and Judgments Order 2001, SI 2001 No 3929 32 A.10 Council Regulation (EC) No 44/2001 on jurisdiction and the enforcement of judgments in civil and commercial terms 37 A.11 Agreement between the European Community and the Kingdom of Denmark on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, 1 July 2007 62 A.12 Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters, Lugano, 30 October 2007 69 A.13 Parties to the Brussels Jurisdiction Convention 1968 (and Accession Conventions), the Lugano Jurisdiction Convention 1988, the Brussels Jurisdiction Agreement 2005 and the Lugano Jurisdiction Convention 2007 96 A.14 Contracts (Applicable Law) Act 1990 97 A.15 Parties to the Convention on the Law Applicable to Contractual Obligations, Rome, 19 June 1980 107 A.16 Regulation (EC) No 593/2008 on the law applicable to contractual obligations (Rome I) 108 PART B: ARBITRATION B.1 Introduction 123 vii DETAILED CONTENTS B.2 Arbitration Act 1996 128 B.3 Convention on the Recognition and Enforcement of Foreign Arbitral Awards, New York, 10 June 1958 164 B.4 Parties to the New York Convention 1958 168 B.5 LMAA Terms 2006 169 B.6 LMAA Small Claims Procedure 2006 184 B.7 LMAA Intermediate Claims Procedure 2009 189 B.8 LMAA Mediation Terms 2002 195 B.9 LMAA/Baltic Exchange Mediation Terms 2009 198 B.10 LMAA Fast and Low Cost Arbitration (FALCA) Rules 1996 201 PART C: LIMITATION OF LIABILITY C.1 Introduction 207 C.2 International Convention Relating to the Limitation of the Liability of Owners of Sea-going Ships, Brussels, 10 October 1957 211 C.3 Protocol, Brussels, 1979 to the Brussels Convention 1957 216 C.4 Merchant Shipping Act 1995, ss 183–186, 191, 192, 313, 315, 316, Schs 6, 7 217 C.5 Parties to the Brussels Convention 1957, the SDR Protocol 1979, the London Convention 1976, the Athens Convention 1974 and the SDR Protocol 1976 237 C.6 Pilotage Act 1987, s 22 239 C.7 Carriage of Passengers and their Luggage by Sea (Domestic Carriage) Order 1987, SI 1987 No 670 240 C.8 Carriage of Passengers and their Luggage by Sea (United Kingdom Carriers) Order 1998, SI 1998 No 2917 241 PART D: CARGO CLAIMS D.1 Introduction 243 D.2 Hague Rules 248 D.3 Carriage of Goods by Sea Act 1971 253 D.4 Hamburg Rules 260 D.5 Carriage of Goods by Sea (Parties to Convention) Order 1985, SI 1985 No 443 272 D.6 Parties to the Hague Rules, Hague-Visby Rules, SDR Protocol and Hamburg Rules 274 D.7 Carriage of Goods by Sea Act 1992 276 D.8 US Carriage of Goods by Sea Act 1936 280 PART E: COLLISION E.1 Introduction 287 E.2 Merchant Shipping Act 1995, ss 187–190 289 E.3 Merchant Shipping (Distress Signals and Prevention of Collisions) Regulations 1996, SI 1996 No 75 291 E.4 Merchant Shipping Notice No MSN 1781 (M + F) 293 E.5 International Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels, Brussels, 23 September 1910 316 E.6 Parties to the Brussels Collision Convention 1910 319 PART F: MARINE INSURANCE F.1 Introduction 321 viii DETAILED CONTENTS F.2 Marine Insurance Act 1906 324 F.3 Third Parties (Rights Against Insurers) Act 1930 344 F.4 Third Parties (Rights Against Insurers) Act 2010 346 F.5 Lloyd’s Marine Policy, MAR 91 359 F.6 International Underwriting Association Marine Policy 363 F.7 Institute Cargo Clauses (A) 367 F.8 Institute Cargo Clauses (B) 372 F.9 Institute Cargo Clauses (C) 377 F.10 Institute War Clauses (Cargo) 382 F.11 Institute Strikes Clauses (Cargo) 387 F.12 Institute Time Clauses Hulls 391 F.13 Institute Time Clauses Hulls (Restricted Perils) 401 F.14 Institute Voyage Clauses Hulls 1983 413 F.15 Institute Voyage Clauses Hulls 1995 422 F.16 Institute War and Strikes Clauses (Hulls—Time) 429 F.17 Institute War and Strikes Clauses (Hulls—Voyage) 431 F.18 International Hull Clauses (01/11/03) 433 PART G: OIL POLLUTION G.1 Introduction 451 G.2 International Convention on Civil Liability for Oil Pollution Damage, Brussels, 29 November 1969 455 G.3 International Convention on Civil Liability for Oil Pollution Damage, 1992 463 G.4 International Convention on the Establishment of an International Fund for Com- pensation for Oil Pollution Damage, 1992 472 G.5 Protocol, 2003, to the International Convention on the Establishment of an Inter- national Fund for Compensation for Oil Pollution Damage, 1992 486 G.6 International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 496 G.7 Parties to the Civil Liability Convention 1969, the SDR Protocol 1976, the 1992 Liability Convention, the 1992 Fund Convention and the Supplementary Fund Proto- col 2003 504 G.8 Parties to the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 507 G.9 Merchant Shipping Act 1995, ss128–182, Schs 4, 5, 5ZA 507 G.10 Merchant Shipping (Pollution) Act 2006 548 G.11 Tanker Oil Pollution Indemnification Agreement (TOPIA) 2006 549 G.12 Small Tanker Oil Pollution Indemnification Agreement (STOPIA) 2006 556 PART H: SALVAGE, TOWAGE AND GENERAL AVERAGE H.1 Introduction 565 H.2 Merchant Shipping Act 1995, ss 224–230, Sch 11 571 H.3 Parties to the International Convention on Salvage, London, 28 April 1989 579 H.4 Lloyd’s Open Form 95 581 H.5 Lloyd’s Open Form 2000 587 H.6 Lloyd’s Standard Salvage and Arbitration Clauses (2000) 589 H.7 Lloyd’s Procedural Rules (revised 2000) 593 H.8 SCOPIC 2005 595 H.9 Code of Practice (ISU and International Group) 2005 603 ix