Marine News - October 2018

Welcome to our marine newsletter for October 2018. In this edition we consider the implications of recent maritime decisions, concerning deviation and the Hague/Hague-Visby rules, the incorporation of the InterClub Agreement in a charterparty and whether drug smuggling is a malicious act for the purpose of the Institute War and Strike Clauses. We also provide an update on the mortgage registration process in Saudi Arabia, on developments in Brazil's customs regulations and on the new judicial agreement between Singapore and China.

Geographical Deviation and the Hague/Hague-Visby Rules

In international sea carriage, deviation from the usual geographic route has traditionally deprived the carrier of the rights and defences (including time bar) available under the Hague and Hague-Visby Rules.

This had been questioned in light of the abolition of the "fundamental breach" rule by the House of Lords in 1980. However, the recent case of Dera Commercial Estate v Derya Inc [2018] EWHC 1673 (Comm) ("Dera v Derya") has confirmed that the principle remains valid. Read more.

Acting Maliciously?

The question of whether drug smuggling was a malicious act has been tested in the UK's Supreme Court.

It is widely acknowledged that trading in certain parts of the world carries with it particular risks, such as piracy, political uncertainty, social instability, corruption or drug trafficking. Colombia and surrounding countries, such as Venezuela, carry a particularly large risk in relation to drug smuggling where, despite the fact that law enforcement agencies have tightened up security to prevent smugglers from attaching drug-filled containers to ships, traffickers continue to regard ocean carriers as a cheap and relatively risk-free way to move their product internationally. All that is required is to find a way to attach the drugs to the hull of the vessel in one port and to retrieve them in the desired destination. The involvement of the captain or the crew is neither necessary nor, in fact, desired. Read more.

London Arbitration 18/18 - Caution when Incorporating ICA Terms in a Charterparty

London Arbitration 18/18 serves to highlight the care that should be taken over the precise wording of clauses used in charterparties to incorporate the Inter Club Agreement (ICA).

This arbitration concerned a charterparty on an NYPE 1946 form with additional clauses, which contained a provision stating that liability for cargo claims was to be apportioned between the...

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