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Important Circulars this week
Significant developments in environmental and labour regulation together with a change to cargo liability cover under P&I have generated four separate, and important, circulars this week.
An updated version of one of the two electronic trading systems, ESS, has now been approved. Circular 6/13 sets out the approval of DSUA 2013.1 but also warns of areas of potential liability that still remain outside Group P&I cover in respect of these systems.
Circulars 5/13 and 7/13 deal with more onerous requirements under Australian and US pollution law respectively. The first describes the revised recommended pollution indemnity clause for charterparties in respect of legal & defence costs and indemnity in the event of contributory fault. The latter reports the more onerous ten day deadline for submission of owners’ Certificates of Entry prior to entering local waters under Californian Code of Regulations relating to COFRs.
Finally, Circular 8/13 gives details of the financial security required of shipowners in respect of repatriation, death or long term disability of seafarers. The International Group is liaising with all ratifying states to obtain acceptance of Certificates of Entry as evidence of financial security for seafarers claims under MLC 2006.
Members should note these circulars as they can affect them in ways that are beyond usual Club cover. The circulars endeavour to give succinct explanations, but in most cases the Club also provides other resources and references to give support to Members on these issues. Links to those resources are provided below:
Circular 5/13 Australian Pollution Law
Legal Briefing: Australia toughens maritime pollution laws
Circular 7/13 California Code of Regulations
US Pollution Risks
Circular 8/13 Maritime Labour Convention
MLC 2006 Resources Area