Reading Time: 5 minutesIntroduction Under Article III rule 1 of the Hague Rules (which apply to contracts of carriage), the carrier shall be bound, before and at the beginning of the voyage, to exercise due diligence to make the ship seaworthy. In the recent case of Alize 1954, CMA CGM SA v Allianz Elementar Versicherungs AG and Others [2019] EWHC […]
Hong Kong: Who shall bear the burden of proof in cargo damage claims?
Reading Time: 7 minutesIntroduction In a recent case Volcafe v CSAV [2018] UKSC 61, the Supreme Court of the United Kingdom (the “Supreme Court”) discussed for the first time as to who shall bear the burden of proof in cargo damage claims against the shipowner under the Hague Rules. Facts Background The Claimants, who are the cargo owners and bill […]
Hong Kong Regional Update: How does the International Regulations for Preventing Collisions at Sea 1972 apportion liability in collisions?
Reading Time: 3 minutesIntroduction In a situation where vessels are dangerously approaching each other and the action of one vessel alone may not be enough to avoid a risk of collision (i.e. a close quarters situation), it is rather difficult to assess the respective blameworthiness and causative potency of the vessels involved. In Owners and/or Demise Charterers of “TS […]
Hong Kong Maritime Series: Will shipowners be protected by letters of indemnity for delivering cargoes to unnamed receivers?
Reading Time: 6 minutesBackground It is not uncommon for charterers or shipowners to be offered a letter of indemnity (“LOI”) for delivery of cargo to a named receiver without the presentation of original bills of lading. This situation arises when the bills of lading cannot be produced or released at the load port before the cargo arrives at […]
Hong Kong Maritime Series: Would the Court impose conditions for granting relief
Reading Time: 4 minutesIntroduction In admiralty actions where there are cross claims, the procedure is governed by Order 75 Rule 41 of The Rules of High Court (Cap.4A) (“RHC”). The rule does not provide for an automatic deadline for a defence to a cross-claim to be filed, instead the Registrar of the High Court may give directions for […]
Hong Kong Maritime Series: Is the arresting party entitled to stop the judicial sale of the vessel as of right?
Reading Time: 4 minutesIntroduction In the recent case of The “Long Bright” [2018] SGHC 216, the Singaporean High Court had to decide on whether the arresting party who wishes to discontinue the action is entitled to release the arrested vessel and stop the judicial sale as of right even after bids from potential buyers have been received. The facts The […]
Hong Kong Maritime Series: Do you have to provide an undertaking in damages when you arrest a ship?
Reading Time: 4 minutesIntroduction It is well established in the United Kingdom as long ago as 1858 that, an arresting party is not liable to pay for any damage resulting from a wrongful ship arrest[1] unless it acts in bad faith or with gross negligence. Also, an arresting party can arrest the ship as of right. Under such circumstances, […]