“Life Cycle of a Ship: Navigating the Perils” - 10 – 11 April 2014
"Life Cycle of a Ship: Navigating the Perils" - Asian Maritime Law & Arbitration Conference 10 - 11 April 2014, Supreme Court Auditorium, Singapore.
The Maritime Law Association of Singapore (MLAS), jointly with the Singapore Chamber of Maritime
Arbitration (SCMA), presents the first ever Asian Maritime Law and Arbitration Conference from 10 to 11
April 2014 in Singapore, in conjunction with the Singapore Maritime Week 2014.
Full details of the conference can be found on the event website -www.amlac-sg.com
- but a brief synopsis is set out below.
The conference will open with a scene from 2007 as Aspiring Shipowner Pte. Ltd. ("Aspiring Shipowner") seeks to expand its fleet with the addition of the M/T "EXCITING FUTURE" ("the Vessel"), a VLCC to be built at a Chinese yard. Owing to a tightly packed order book, the Vessel is scheduled to be delivered only in 2013. In anticipation, Aspiring Shipowner enters into a long-term time charterparty with delivery dates to coincide with the Vessel's completion. The charterparty provides for SCMA arbitration but the agreed clause is flawed. The Vessel's price is financed by a loan secured through a mortgage and assignments of the Vessel's future income. Aspiring Shipowner also has the comfort of a refund guarantee issued by the Singapore branch of the shipbuilder's bank.The Present
Fast-forward six years to 2013 and the depression in the shipping market has caused the shipyard, with Aspiring Shipowner's consent, to postpone delivery until January 2014. Aspiring Shipowner nominates another vessel in its fleet, the M/T "ULTIMATE DREAM" as a substitute vessel to perform the time charterparty. The substitute vessel is accepted by the charterer Big Oil Ltd ("Big Oil") but is subsequently rejected when Big Oil attempts to deliver the vessel to its own sub-charterer, Best Shipping Ltd, under a sub-charterparty which had been entered into on similar terms. Left with little alternative, Big Oil trades the M/T "ULTIMATE DREAM". During this period, the M/T "ULTIMATE DREAM" is involved in a collision whilst manoeuvring at anchorage just outside Singapore waters.
Meanwhile, Aspiring Shipowner gets wind of rumours that the shipyard is on the verge of collapse. Non-committal statements from the shipyard and reports from Aspiring Shipowner's superintendents lead to Aspiring Shipowner's confrontation with the shipyard and subsequent termination of the shipbuilding agreement and eventual call on the refund guarantee. Proceedings are commenced. The Vessel is eventually completed in December 2014 and, pursuant to a settlement agreement, delivered to Aspiring Shipowner.2030
Taking another leap into the future, we move into the end of the Vessel's trading life. Aspiring Shipowner plans to extend the useful lifespan of the Vessel by converting it into an FPSO. The conversion works are contracted to another shipyard by Aspiring Shipowner's managers. The cost of the conversion works are financed by another bank loan to Aspiring Shipowner.
A series of disputes breaks out during the course of the conversion works. Allegations are exchanged between Aspiring Shipowner (through their managers) and the shipyard regarding the interpretation of the design specifications. Concurrently, Aspiring Shipowner discovers that the design specifications originally contracted for are insufficient to handle the envisaged product. The consulting engineers who advised on the design specifications deny responsibility.
You may also be interested in:
QCR Winter 2018: Carriage of goods by sea — Contract of carriage in charterparty or bill of lading...
Carriage of goods by sea — Contract of carriage in charterparty or bill of lading — Can cargo interests sue under straight bill of lading — Whether voluntary salvors entitled to be rewarded — Whether cargo interests entitled to recover transhipment costs — Whether cargo interests liable to contribute in general average if vessel not seaworthy at the commencement of the voyage
Non-Compliant Fuel Carriage Ban
From 1st March 2020, carriage ban on non-compliant fuel oil will enter into force. This means that ships can no longer carry non-compliant fuel on-board unless the same is carried as cargo. Any non-compliant fuel remaining on-board must be removed from the vessel’s fuel tanks failing which there will be a de-facto non-compliance even if such fuel was not intended to be used for consumption. The Carriage Ban does not apply to vessels fitted with operational scrubbers.
The 75th session of the IMO’s Marine Environment Protection Committee (MEPC 75) took place remotely from 16 to 20 November.
The UK Club’s Correspondents in China, Huatai Insurance Agency & Consultant Service Ltd, would like to alert Members to recent cases where crewmembers onboard ships were required to perform antibody testing in addition to NAT (swab) tests prior to entering shipyards in Shanghai and Zhoushan.